Companies use metrics that are focused on how efficient the sales process is, retention of their customers, repeat sales, brand health, and website sales activity to measure the activity of their business to business product teams.
1. Sales Based
- Calculating a number of leads to revenue ratio.
- How much time it takes to make a sale from initial inquiry to closing the deal.
- Average size (in revenue) of a sale.
- Efficiency of closing a sale.
- Conversion rate of inquiries to marketing qualified lead (MQL) to sales qualified lead (SQL).
- Customer Aquisition Cost (CAC)/Cost to acquire a new customer within the marketing budget.
- Customer satisfaction.
- Customer retention.
- Length of time as a customer.
- Client survey response.
- Number of times client calls to complain/calls support.
3. Non-Marketing Based
- A brand health scorecard against its competitors.
- Revenue gained by non-marketing elements.
- Number of renewal sales/contracts completed.
- Number of up sells completed.
4. E-Commerce/website based
- Potential clients will leave a webpage if it does not load within 3 seconds.
- Longer times on the website means better chances for a sale.
- Decreasing irrelevant search results through search engine results.
- Conversion rates of an e-commerce client.
Companies/Marketplaces that Have Successfully Changed User Behavior
The seven companies/marketplaces that have successfully changed user behavior include Instagram, Shopify, Netflix, Spotify, Uber, Postmates, and Amazon.
- Instagram is a photo and video sharing social media application owned by Facebook.
- The platform was selected because it changed the way social media users post photos. It allows and encourages users to post photos and videos as soon as they are taken.
- Since its conception, Instagram has blossomed into a platform that shapes how users market products through influencers and aid in mobilizing activism.
- The head of product is Vishal Shah
- Shopify is an e-commerce website that enables merchants to be involved in every aspect of the retail process.
- The platform was selected because it changed and shaped the e-commerce game and how online retailers reach consumers.
- Prior to its conception, there was nothing else on the market like it. It gives consumers a choice as to where to purchase their goods and gives retailers more control over the process.
- Satish Kanwar is the GM & VP of Product (Channels).
- Craig Miller is the Chief Product Officer.
- Netflix provides a subscription-based streaming service of films and television shows, including those it produces in-house.
- Netflix was chosen because of its subscription based dominance and its eradication of the need for brick and mortar movie rental stores.
- Christie Fleischer is the Head of Global Consumer Products.
- Spotify is a global music streaming service using both an online and app platform that allows users to play free music or subscribe for better features.
- Spotify was chosen because of its global popularity and dominance. It has a massive music library and its only true competitor in terms of access to music is Apple Music.
- With its free and subscription offers, music lovers are no longer required to pay for music to listen to their favorite tunes on the go.
- David Cutler is the Product Lead.
- Uber is a ride-share application that allows users to get reasonably priced rides on demand from their phones.
- Uber was selected because it has changed how people get around. Ride sharing has made it easier and cheaper for users to get a car on demand.
- The service is significantly easier and cheaper than hailing a cab.
- Abhishek Gupta is the Product Lead.
- Postmates is a food ordering application that allows users to have food and/or alcohol brought directly to their homes without having to speak to anyone.
- Postmates was selected because its app is easy to use and it no longer requires people to pick up a phone and speak to anyone to have food delivered.
- James Butts is the Product and Design Lead.
- Amazon is an online retailer that allows consumers to order products directly to their homes.
- Amazon was chosen because it allows users to purchase anything they need or want online and have it delivered quickly and directly to their door, eliminating the need to go to a brick and mortar store.
- Gaurav Kumar is the Product Lead.
We began our research by brainstorming which companies we could personally think of that changed how we have participated in or purchased things, which led us to the inclusion of Instagram, Shopify, and Netflix. From here, we extrapolated to think of similar companies that have changed how consumers do things which led us to Spotify, Uber, Postmates, and Amazon. We chose Spotify over Pandora (even though Pandora changed the streaming game with its 2000 inception) because Spotify is a more current and popular streaming service in 2019. After deciding on these seven from our brainstorm session, we took to online newspapers and blogs to find the data to back-up our hypotheses.
These companies were chosen because have they successfully changed user behavior. All seven listed are well-known and established businesses who have created new habits for their consumers, for example, Amazon that remains an online powerhouse with limited direct competition online. This also rings true for Netflix, which remains the most dominant online streaming service to date. It takes time to build a new user habit or category, making these examples still relevant.