Metrics
Metrics are quantifiable and measurable results that a customer perceives as valid for his project or initiative. Your prospects in general will initially not openly share hard metrics how they measure negative consequences or positive business outcomes on addressing a pain or initiative. However if you can build the trust that your offering will help addressing the pain you will be able to discover “the golden nuggets” on every meeting. Collecting Metrics is like collecting money, that will justify the investment and will let you quantify the benefits to protect your price point.
in general Metrics and can be divided in 2 major groups.
Below the Line
For example, cost savings and efficiency gains. Many times paired with reductions on FTEs (Full Time Equivalent)
Above the Line
These are more business-centric like increase in revenue or profit, quicker time to market, higher quality and customer satisfaction. These metrics are used to build decisions and are used to build the Business Case or ROI
Tangible Metrics: We are 15 FTE(Full time equivalent) with 95% utilisation. We are expanding our infrastructure 15% a year and we expect another acquisition this year, which will double. We will not get a budget to increase FTEs.
In other words clear savings the CFO will understand
Intangible Metrics: Improve customer satisfaction, raise the awareness of a brand or reduce the performance of system XYZ.
While this may be all good reasons, however most like be disregarded and ignored by the CFO.
So how can you identify solid tangible metrics.
Questions to ask:
- How would you measure success of your project?
- Which metrics around cost, efficiency or business do you need to achieve?
- How would this success be measured by business?