How to set a performance target for a marketing program, initiative and/or objective is a critical component in developing an Marketing Performance Measurement and Management (MPM) framework and system. A performance target represents a commitment to achieve a specific and better quality or level of performance over a specified time frame. It is used to evaluate performance achieved compared to performance expected. For this example, a tactical program may be developed and implemented to generate qualified leads from a set of share determiners, so the performance target might be a range of some number of qualified leads per program.
Marketers that utilize performance management best practices intelligently set performance targets that are relevant to the organizationís objectives and outcomes. Unfortunately, difficulty in setting performance targets is one of the most common problems encountered on the MPM journey and many marketers neglect to set performance targets for their tactical programs. Without a stake in the ground, any results reported, while useful, do not necessarily demonstrate that marketing met its performance commitment.† If you decide to make performance target setting a standard of excellence for your marketing organization, these 10 steps will help you set performance targets you can meet.
1. Have clear measurable outcomes and objectives. You need to know what where youíre headed and what youíre aiming for.
2. Define the time period for achieving these outcomes/objectives
3. Determine a performance baseline for affecting this type of outcome and objective. Historically, what have your programs produced? If you canít use your own data to establish a baseline, consider using a benchmark from your industry.
4. Identify the performance measures you need to improve. Remember, a performance target is about taking your performance to the next level. You want to set a target that demonstrates improvement but not one that sets you up to fail.
5. Establish the purpose of the performance target. Be clear about what you are trying to improve.
6. Assess whether you need intermediary or milestone targets. You may find out that there are some interim performance targets you need to achieve before you can reach your ultimate target.
7. Chose the target value. For example, some improvement in the number of qualified leads, or some improvement in the average order value, or some improvement in the number of referrals that will convert to qualified leads, and so on. Itís often a good idea to use a range for your target value.
8. Develop an action plan to achieve the target.
9. Implement your plan of action.
10. Monitor, Report and Evaluate.
Hope you find these ten steps helpful. Let us know how else we can help.