Digitization is disrupting every business and is spreading like a wildfire across every sector such as Banking, Financial Services, Insurance, Retail, and Manufacturing.
While traditional metrics of revenue, costs, customer satisfaction should be measured, companies should move beyond these quarterly revenue and margin guidance as they keep pulling them back to short-term tactical focus. The new metrics have to be added to get the right control and visibility of progress.
Some of the new metrics which can be considered are:
% of marketing spend that is digital
Brand value in the market
Reach of an organization in the market
Digital maturity quotient of the employees including board and senior leaders
% revenue through digital channels
Contribution to digital initiatives from each department like purchasing, finance, HR, IT, Sales & Marketing
The new metrics for Customer experience can be:
Net promoter score
Rate of new customer acquisition
Number of customer touchpoints addressed to improve customer experience positively
% increase in customer engagement in digital channels
Reduction in time to market new products to customers
Change in customer behavior over time across channels
Return on Investment metrics:
% of revenue from new products/services introduced
% of the profit from new ideas implemented
Number of innovative ideas reach concept to implementation
Number of new products or services launched in the market
Number of new business models adopted for a different class of customers
Rate of new apps and APIs to offer new products/services inside and outside the company
Always keep these metrics simple and measure the right things and celebrate even the small successes so employees are motivated.