Wednesday, 4 December 2013

Key Performance Indicators

In Ambro's case, KPIs ought to be used in order to evaluate its success of a particular area of activities. These KPIs will be constantly analyzed and adjusted to determine Ambro’s actual performance to that of projections and thus maintain Ambro in the path of profitability, scale and sustainability.

For Ambro, the following areas and its KPIs are important:

  • Marketing KPIs
    • New customer acquisition: measures the extend of new consumers reached by Ambro's marketing efforts. This KPI is especially important when looking at market share growth and penetration towards a new consumer segment. Ambro is using a online delivery system. It makes tracking old and new customers easy as opposed to the brick and mortar retail stores as Ambro has additional data on their consumers: their addresses. By crosschecking the addresses of a current batch of shipment to the previous batches, the amount of new customers that Ambro is reaching can be identified and measured.  
    • Social interactions online: accounts for the exposure of your online marketing efforts to your targeted consumers. Different social media platforms that Ambro will advertise on have different interactions (Facebook Likes, Twitter Mentions) which gives a direct indication how many consumers are actually taking positive notice of Ambro's activities and messages towards the consumer.
    •       Industry Life Cycle Stage: The life cycle stage of the industry that a company enters greatly influences the opportunities for success. Evidently companies entering early in the industry life cycle having greater odds of success than those entering very mature or terminal industry stages. Given the inherent and pioneering characteristics of Ambro, Ambro can be placed in the former stage of the industry life cycle and thus will be able achieve scale and recognition quicker and be able to carve-out multiple opportunities throughout its path in becoming the next best food alternative. Defining this stage could be elemental as Ambro's strategy and efforts ought to correspond to its current stage. 
  • Customer KPIs
    • Customer order wait time: the time that customers need to wait to receive their Ambro orders can play an elemental role in to the value delivered. This KPI can be measured by requesting data on delivery times of the company Ambro chooses for package deliveries. Besides that, the deliveries can be tracked. This will enable Ambro to keep track of the delivery times using software.
  • Financial KPIs
    • Sales, costs and profits: these KPI's can speak for themselves as one of the most important focus area's of Ambro. It can be measured through the proper financial and cost management accounting processes.
    • Returns on Investment: will measure the ability of your investments (marketing campaigns, process improvements, product improvements etc.) to generate new revenue. In other words, ROI shows the efficiency of the use of money in terms of generating new sales, therefore new profits. However, determining ROI could be proven to be quite hard as the link between a specific investment and the general development in sales.  





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