CHASE - CREDITCARDS

Analyzing Your Business Performance

In addition to financial measurements, you should examine several other key business measurement areas that make a direct contribution to the growth and success of your business. These areas are productivity, personnel, and sales and marketing.

 
Productivity

Three common productivity measurements are:

• Sales revenues per employee
• Output per employee (or team)
• Percentage of errors (and/or waste)

 Calculate your results and compare with industry and internal standards.

 
Personnel

The cost of recruiting, hiring, and training employees can be high. It usually costs less to hire good employees and to retain them, rather than constantly training new ones.

Sales and Marketing

Use your business plan to establish sales goals. Break the long-term goals down into smaller, short-term incremental goals. Your goals will drive the number of promotional pieces mailed, contacts made, leads generated, phone, or personal calls made. These activities, in turn, influence the number of sales closed.

The cost of sales is important in calculating your return on investment in marketing and advertising. For example, if you know the average number of direct mailings needed to generate a certain level of sales, then you can project sales increases by adjusting the number of pieces you mail. This methodology holds true for each type of marketing. It is important to know what results will likely be achieved for each marketing dollar spent. 

Analyzing your business performance beyond the financial measurements will provide you with broader and more in-depth knowledge about your business so you can be more successful.

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