September 23rd, 2003

Lee,

Know any good doctors who don't own a stethoscope or thermometer? Carpenters with no tape measure or level? Butchers with no meat scale? Cops with no radar gun?

We take measurement for granted in our daily life...we get up at 6:25, we drink a double coffee latte, we take the 7:25 into town, we work 8-6 and hope for a 10% raise. Our manufacturing line has to produce 16% more so that we can increase our market share by 7.5 points.

Our car gets 23 miles per gallon, the tires take 34 PSI, we don't exceed 65 or we pay a 10% surcharge on our annual insurance rates.

Our kids get a 92% average in school, place in the top 10% of their class, apply to 3 reaches and 2 safetys, have a 30% chance of getting in early decision. We will need a second mortgage at 7% for 4 years of college.

The numbers are everywhere...

Numbers are everywhere...and for good reason. They not only tell us how we're doing but with the right combination of numbers and expertise, we can determine what we must do to improve those numbers.

Packaged goods companies have benefited from studying metrics for decades...targeting "experientials" and "achievers" in the appropriate ratios, through media delivering the right number of impressions that results in steadily increasing lifetime customer values.

Successful business-to-business focused companies are now taking a scientific approach to their sales and marketing activities as well. And these businesses start by segmenting their target customers, understanding the key pain points of each segment, and measuring the effectiveness of market development campaigns targeting each segment.

Then, as one segment proves more profitable than another, they shift an increasing amount of their attention to the more profitable segments, while still testing additional targets.

We've talked about target segments, customer touch points and testing marketing effectiveness in previous newsletters. The numbers wrap it all up in a neat package - they tell you how well you're doing.

You might not be studying these numbers...but your competition sure is!

What should you do?

And here's the call to action - if you keep on doing what you've been doing, you're going to get the same results you've been getting. Is this good enough for you?

If not, it's time to try something different. You probably know what to try...the new segments to target, new campaigns to run, new messages to try, different partners to spend time with. Just be sure to measure the results so that you can compare them to how you've done before.

And ask for help in getting started. Get some assistance in selecting the right targets or campaigns, or messages, or partners. It's not easy taking an organization into uncharted territory...but with the right guidance and measurements, the exploration can bring new revenues and profits.

Thanks for reading!