BULLSEYE! by WILLIAM A. SCHIEMANN & JOHN H. LINGLE

Author:WILLIAM A. SCHIEMANN & JOHN H. LINGLE
Language: eng
Format: epub
Publisher: FREE PRESS
Published: 1999-07-15T00:00:00+00:00

A 2

B 4

C 1

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Last customer 3

Average products used 1.75

This measure appeared equally reliable, sensitive to change, and understandable as the first measure. It also had the advantage of measuring more directly the concept of “buying breadth”—the average number of products being used by each customer—than did the first measure. Design team members felt it would encourage the geographical managers to know exactly how many products each of his or her customers were using. This enabled the organization to grow the “breadth” of customer purchases—the strategic objective—rather than simply increase the number of customers, a more likely result of the first measure.

The one disadvantage was that the information needed to calculate this second measure was not currently being collected by the organization. Databases would need to be redesigned to calculate and begin tracking accurately the number of products being used by each of the organization’s customers. However, this company felt the additional expense was worth the investment because it provided a better guide to the geographical managers. Both measures were good, but one was strategically superior as a communication vehicle to motivate employees toward desirable behaviors.

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