Table of Contents
1. Introduction š
2. The Importance of Measuring Outputs and Outcomes š
3. Leading vs. Lagging Indicators š
4. Prioritizing Efforts During a Crisis šØ
5. Giving More to Customers š°
6. Conclusion š
Introduction š
In these uncertain times, businesses are struggling to adapt and pivot to the new normal. Companies are trying to identify places where they can save resources, optimize, and re-strategize. In order to do this, it is important to have a clear understanding of how each part of the business is performing. This is where data comes in. Data can help businesses make informed decisions about what to do next. In this article, we will discuss the importance of measuring outputs and outcomes, leading vs. lagging indicators, prioritizing efforts during a crisis, and giving more to customers.
The Importance of Measuring Outputs and Outcomes š
Many companies make the mistake of only measuring the results that they are producing, but not the work that they are doing to achieve those results. It is important to measure both outputs (the work that is being done) and outcomes (the results that are being achieved). Without understanding the correlation between the work that is being done and the results that are being achieved, it is difficult to make decisions about what to do next.
For example, in the case of marketing, it may be important to measure the amount of content that is being published, or the leading indicators of where specific pieces of content are ranking. By looking at historical data, businesses can see what has changed and what might be impacting their sales. By measuring both outputs and outcomes, businesses can start to correlate the two and make informed decisions about what to do next.
Leading vs. Lagging Indicators š
Another way to look at metrics is to consider leading vs. lagging indicators. Lagging indicators are results that have already happened, such as churn. Leading indicators are early indicators of success, such as cancellations or product usage. By focusing on leading indicators, businesses can get a better understanding of how each part of the business is performing and make informed decisions about what to do next.
For example, in the case of SaaS, churn is a lagging indicator. It could be 30 days, 90 days, or even 365 days before a customer cancels. A leading indicator of churn is cancellations, or even product usage. By measuring leading indicators, businesses can get a better understanding of how each part of the business is performing and make informed decisions about what to do next.
Prioritizing Efforts During a Crisis šØ
During a crisis, it is important to focus on what you can control. This means getting as much visibility into your work product as possible, measuring your outputs and outcomes, and obsessing over the efficiency of your team. It is also important to not stress over short-term results, but to focus on setting yourself up to do well when things return to a new normal.
For example, during the COVID-19 pandemic, businesses had to face the reality that life was interrupted and work was going to be interrupted for a little while. However, this did not mean that businesses should take time off or stare at their screens and not know what to do. Instead, businesses should focus on the things that they can control and make sure that they are doing everything they can to set themselves up for success in the future.
Giving More to Customers š°
During a crisis, it is also important to give more to customers. This could mean offering discounts, increasing the number of dashboards that customers are allowed to have, or even offering custom integrations. By giving more to customers, businesses can show that they care and are willing to go the extra mile to help them during these difficult times.
Conclusion š
In conclusion, measuring outputs and outcomes, focusing on leading vs. lagging indicators, prioritizing efforts during a crisis, and giving more to customers are all important strategies for businesses to consider during these uncertain times. By doing so, businesses can make informed decisions about what to do next and set themselves up for success in the future.
Highlights
- Measuring both outputs and outcomes is important for making informed decisions.
- Leading indicators are early indicators of success, while lagging indicators are results that have already happened.
- During a crisis, it is important to focus on what you can control and set yourself up for success in the future.
- Giving more to customers is a way to show that you care and are willing to go the extra mile to help them during difficult times.
FAQ
Q: What are leading indicators?
A: Leading indicators are early indicators of success, such as cancellations or product usage.
Q: What are lagging indicators?
A: Lagging indicators are results that have already happened, such as churn.
Q: What should businesses focus on during a crisis?
A: Businesses should focus on what they can control and set themselves up for success in the future.
Q: How can businesses give more to customers during a crisis?
A: Businesses can give more to customers by offering discounts, increasing the number of dashboards that customers are allowed to have, or even offering custom integrations.
