LESSON 1: MEASURE WHAT MATTERS
Introduce real non-financial lead indicators
Boards and executives are seeking actionable metrics that forecast the economic prosperity of the brand/business.
Unequivocally, Forethought has found the metric ‘brand health’ is the most effective non-financial lead indicator of acquisition of customers and market share. We base this view on the empirical, validated evidence produced in thousands of studies conducted across categories, geographies and varying market and economic conditions.
Brand health is derived from the category’s choice drivers and the brand’s relative performance weighted by market share.
When it comes to identifying the non-financial lead indicators of customer retention, driver analysis requires an optimum lag indicator or outcome variable coupled with hypothetical lead indicators captured in survey and organisational data (explanatory variables).
Reliable and predictive non-financial lead indicators exist – NPS is not amongst them.