Proliferate Your Business with Customer Segmentation

Proliferate Your Business with Customer segmentation - Saasprospects.com

Customer segmentation is a successful marketing tool when implemented correctly.

What is Segmentation?

Segmentation is the classification of customers (and prospects) using defined characteristics that allow you to easily find and categorize people while helping you understand and predict how they may act.

Understanding your customers–their similarities, their differences–is one of the most fundamental and important steps in quantifying the customers’ relationship with your product and company. There are many segments to choose from, but only a few that your specific customers fit into.

For this reason, selecting segments and placing your customers must be done with precision. Your precise customer segments can then be used to improve your product, marketing efforts, and, ultimately, your profitability.

How to Segment Customers?

Based on Demographic Segmentation

The simplest way to divide your customers is based on demographic data. Most companies use it to get the right population in using their products. Demographic data means their age, gender, family size, education, profession, income etc.

For example, if your customers are young children, you can make advertising choices to reflect their interests. One more example on income demographic segmentation is Audi and BMW car manufacturers target high-end users whereas Maruti target normal end users.

Based on Behavioral Segmentation

This type of market segmentation divides the population on the basis of their behavior, usage and decision-making pattern. Segmenting them into groups depending on which products they buy, how often, and how they purchase each product.

Look at customers who have only purchased one item, returning customers, and new customers. You can also separate customers from the number of sales they have contributed to your business (lifetime value). Thus, the usage segmentation is also a type of behavioral segmentation.

Based on Psychographic Segmentation

Psychographic segmentation is one which uses lifestyle of people, their activities, interests as well as opinions to define a market segment. Psychographic segmentation is quite similar to behavioral segmentation. But psychographic segmentation also takes the psychological aspects of consumer buying behavior into accounts. These psychological aspects may be consumers lifestyle, his social standing as well as his AIO. Do refer more to Activities, interests, and opinions.

Groups might include customers that strive for “clean” or “green” living, religious customers, or customers that support a certain cause or charity,

  • Psychographic information is best obtained through surveys or focus groups.
  • Psychographic traits may be applied broadly to different generations, such as baby boomers and millennials.

Based on Geographic Segmentation

Geographic segmentation divides people on the basis of geography. Your potential customers will have different needs based on the geography they are located in.

This type of segmentation is the easiest, but it was actually used in the last decade where the industries were new, and the reach was less. Today, the reach is high but still geographic segmentation principles are used when you are expanding the business in more local areas as well as international territories.

Segmentation helps you with:

Targeting

You need to be able to determine which subset of potential customers are the ones you want. Everyone wants perfect customers. The easy way to figure out which kind of customer is perfect for you is to know that you’ve found the perfect subset. And that subset, that targeting of a specific group of people, is a by-product of knowing how you broke up the entire set of potential customers into groups. Then you can pick which groups are a good fit for you, and you can walk away from the unprofitable ones.

Pricing

Different segments will value what you do differently. Once you understand which segments you’re going after, you can make sure that your pricing aligns with what makes sense to each segment. It allows you to align your price with their perceived value, and that’s a huge deal because it gets you moving away from straight costs.

Positioning

Different segments have different competition because they have different alternatives. This means you need to position yourself well in each segment, but that means you have to know what those segments are, and who your competition is within each segment.

Promotion

How you promote your product, and how you pitch it – from the words to the images to the places where you spend money – all change based on your target. If you don’t know which segment you’re going after, you can’t determine where your targets hang out, and that means you’re left with broad messaging rather than the laser-like focus.

Product

When it all comes down to it, even what your product does (it’s features) are a by-product of what segment you’re going after. Because you want to solve a problem. And different segments have different problems.

Conclusion

Finally, try and focus your efforts by having some research questions and hypotheses to answer before collecting data and customer segmentation, but don’t be afraid of following the patterns seen in the analysis. Oh yeah, and get as much buy-in as you can. You don’t want people arguing too much over who “owns” the customer relationship.

If you are ready to take your business to the next level, click here to give Saasprospects.com a try.

 

STOP!!! Don’t buy marketing lists, until you read this.

Don’t buy marketing lists, until you read this - saasprospects.com

Thinking of buying an email list…!!!

Don’t buy marketing lists, until you read this.

Generally, people who are desperate to fill their sales funnel consider buying a marketing list for low price. Remember Low Price Lists = Bad quality. They don’t look into the quality. They care only about the quantity.

Do you know? On an average, 52% of emails sent are getting bounced. This is a serious problem and causes defamation to your company.

A solid email list is one of a business’ greatest assets. If someone gives you their email and a little bit more information about themselves, maybe by filling out a form on your website, you can be well on your way to turning that lead into a paying customer.

It’s easy to buy email lists for cheap, but the list quality is generally on par with the price. Most list services either sell oversaturated, outdated email lists that have been spammed to death, or auto-generated, web-scraped lists with low deliverability rates.

Finding quality list vendors is no easy task. But it is possible to find quality lists for less. Here, we’ll show you what to look for when buying email list services to ensure you’re receiving a highly targeted, quality list for your money.

However, the fact is that buying a list of business emails is not a bad move.

There are a lot of potential benefits to purchasing email data lists. Just like most things, though, you need to buy with discretion. Do your homework. Find out what you are getting before you buy. If you are smart about it, there is no reason why buying an email list can’t work well for you and your business.

Before buying an email list, ask yourself these questions:

  1. Why I’m buying this list?
  2. What should you do before buying a list?
  3. Where should I buy the list?

Why I’m buying this list?

Business-to-business mailing lists are an essential component of any B2B company’s success.

You have to invest a lot of time and money in cultivating your own lists. Buying list is smart because it gives you the opportunity to learn about the marketplace and the companies that fit into your target niche. It’s not always realistic to build your own contact list from scratch. 

What should you do before buying a list?

Look for a reputable vendor.

Not all vendors that offer email lists for sale are reputable. You get what you pay for when it comes to data lists. Cheap lists from shady vendors are going to be mostly worthless to you. Do your homework to find a reputed vendor that stands behind its email lists. You might pay a little more, but your investment will also bear more fruit.

Look for the lists that suit your geographic region and industry.

This factor is essential because you don’t want a list of contacts that have nothing to do with your market.

Instead, look for lists that match the geography, industry, and product niche of what you are selling. If you are expanding to the US, find a vendor that is selling business mailing lists for the US.

Ask for the samples, if not included.

A sample list gives you the rough idea on working style of that vendor. If a sample list is included, you can recognize the good ones. They’ll offer their customers sample lists. This is a great way for you to check if the data you’re paying for is worth it.

Transparent prices

Everything has to be out in the clear – so no hidden charges, no additional restrictions in small letters. Pay attention when you’re choosing to pick a service that isn’t just cheap, but that offers lists that have real value. Once you make sure those mailing lists are good enough, pay attention not to be tricked into buying lists that have use restrictions.

Before paying for anything, double-check it. Prices, restrictions, verifications, and quality – if you find a good service provider, your business can seriously benefit from it.

Where should I buy the list?

Not being a shameless plug or self-marketing.

Saasprospects.com’s main agenda is to deliver a quality service to the clients. When we founded our company, there are so many companies that offer sales leads. Unfortunately, the quality of service is very poor. We value your time and money. We love data, analytics and marketing science. That’s why we are here, one of the leading marketing lists vendors.

We aren’t one of those companies that concoct a list and then keeps selling it for years without any updates. We know how quickly contacts can change in the B2B world. Instead, we track individual contacts and update their information as they move from one job to the next. These live data updates mean that you spend less time chasing dead email addresses and more time talking to real people.

Our lists are hand-curated and categorized by industries, functions, and geographies. When you buy a marketing list from Saasprospects.com, you get something reliable, up-to-date, and complete.  

 

If you are ready to take your business to the next level, click here to give Saasprospects.com a try.

 

6 Major Content Marketing Failures and How to Prevent Them.

6 Content Marketing Failures and How to Prevent Them - Saasprospects.com

Content marketing is a new weapon in the arsenal of marketers. It is an effective way to attract and educate your potential customers. And the best part is you don’t have to break the bank to adopt content marketing. Though more and more companies are making content marketing their main marketing strategy, not all of them are getting the desired Return On Investment (ROI). Several factors affect the result of content marketing.

Is your content marketing strategy just not working for you?

You’re not alone.

A lot of people fail miserably at content marketing — and they don’t even know why they’re failing.

The majority of businesses use content marketing, and yet most of them fail. 94% of B2B small businesses use content marketing.

For many people, it’s not that their content marketing failed; it’s that their strategy failed. It could also be that they didn’t even have a strategy.

In this article, know about the step-by-step process of content marketing and the importance of each. You’ll also find misconceptions of many people about content marketing and how to avoid them. Hopefully, by the end of this post, you’ll realize that as much as content marketing is fun and effective among any other online marketing strategies, it also requires time and patience.

Here are the top 6 content marketing failures and how to prevent them:

  • Publishing random topics you like.

You shouldn’t write whatever topic you like or a topic that creating buzz. If you’re aiming for visitors, take time to plan for your topics. You can’t write random topics and expect your traffic to spike.

Find an answer to

  • What is our audience interest?
  • Who are you trying to reach on social media?
  • Who buys your product?

You can use BuzzSumo, Google Alerts or Ahrefs Content Explorer to look for topics that are already gaining good numbers of traffic and social shares, then create a better version of it.

This technique not just expedites the process of topic creation, but also gives you a clear view of what the audience is really interested in.

  • Not investing enough time into planning.

You don’t have to sink all of the company funds into strategy, but you do have to invest.

No investment equals content marketing failure.

When asked, 48% of content marketers said they plan to increase their spending over the next 12 months.

  • You are focusing on the wrong community.

For instance, if your potential customers spend most of their time on Facebook, there is no point in focusing your marketing energy on Twitter. Selecting a right marketing channel is vital for the success of your content marketing efforts. A sure-fire content marketing strategy will not yield the desired result if you fail to choose the right marketing channel. Do A/B testing to find out which channels are giving you good returns, and focus on these channels to maximize the success of your content marketing.

  •  Ignoring SEO’s importance.

Many people say that SEO is dead. But it isn’t true.

SEO is a vital part of content marketing, You just can’t have a successful content marketing strategy without SEO.

Only 16% of referrals come from social media, while a whopping 84% comes from search and direct referrals. Those numbers don’t lie.

  • Don’t wish or look for viral content.

You might think that after hitting the ‘publish’ button that your job is over.

Heck no, you are not even close.

You can’t write and hope that someone will notice and share your blog post. It doesn’t work that way.

To amplify your content, you can:

  • Join or build community– being part of a community will not just give you an avenue to share your post, but will also help you build relationships with other bloggers or experts
  • Broadcast – share your post in all your social media accounts, as well as through e-mail.
  • Tap the same people who already shared related content– if you used BuzzSumo or Content Explorer to look for popular content, there’s an option where you could check where it’s being shared, and who’s sharing it. List it down, and start reaching out to those people.

 

  • Measure your success.

Once you have set your goals, you have to measure your success.

If you ignore the analytics, there is no way to know what works.

When I encourage you to measure analytics to measure success, I don’t just mean one metric. Your goals and metrics should be based on multiple numbers.

The majority of B2B small businesses measure their content marketing success based on their website traffic. This isn’t a bad way to measure success, but it shouldn’t be the only way to monitor the success of your content marketing strategy.

Conclusion.

Content marketing is a highly effective marketing tool and can play an integral part in building trust and generating leads. Avoid these six, above-explained, mistakes, and you will certainly boost the ROI.

Schedule a demo to learn more about our marketing solutions. Our proficient team would be more than happy to assist you in any way deemed possible. Or call us at +1 415 800 3901 Or write to us.

11 Well-Written Email Conversion Tips to Boost Your Email Marketing

11 Well-Written Email Conversion Tips to Boost Your Email Marketing - Saasprospects.com

You never know how it is going to perform until the campaign goes live. Writing a few sentences for an email campaign might not seem challenging, but there is an art to creating an effective copy. With these, well-written email conversion tips you can boost your email marketing as well as revenue of your company.

When it comes to email marketing, a copy is one of the top determinants of whether a campaign succeeds or fails. When your email message is well written, it can draw up to 7.8 times more traffic to your website. That is nothing to scoff at, and yet, many marketers are in such a hurry to get emails out that they spend little time thinking about word choice, placement or their audience.

Sure, you can A/B test every element of each email all month, but taking that time means, you will probably start losing leads. We want to share with you some valuable copywriting techniques that have bolstered the performance of our emails.

For 59% of surveyed B2B marketers, email is the best channel for generating revenue, likely because the majority of the audience voluntarily opted to receive the brand’s emails, indicating an interest in the company and its products or services. As per a MarketingSherpa study, 72% of U.S. adults prefer to communicate with companies through email.

Here are 11 email conversion tips to help you successfully transform your prospects and leads into customers.

Write appealing subject line.

Opening your email or moving it to spam depends mostly on your subject line. A subject line should drive more interest and eagerness to open your email.

Emails that have personalized subject lines are 26% more likely to be opened compared to emails without personalization in the subject line.

People open your emails if they feel they will benefit, if they are worried about missing out, or if you present compelling evidence about why they should.

Sure, it is a lot to ask from a single email subject line, but you can do it.

Do magic with adjectives.

Adjectives in the subject line help in triggering excitement in the leads.

Adding a punchy or emotive word to a headline is vital to enticing that all-important click, and it can really help encourage sharing.

Nail the preview text.

With modern email clients, it is not just the subject line that sells people on opening your email. It is also the preview text. That is the piece of text that tells subscribers more about the content of your email.

Often, this shows part of the first line of the email. That is fine, as most email copywriters craft this carefully.

However, if your preview text shows instructions on how to read the email online or unclickable links to your social media profiles, then you are wasting an opportunity. With email preview text ranging from 35 to 140 characters, depending on the client, this is an aspect of your email you can’t afford to neglect.

Don’t worry about the length.

Length is an irrelevant consideration when you are creating a stellar email. What matters is the substance of your writing. If you can convey your message in two short paragraphs but spread it, over seven paragraphs, that is a problem.

Email copy needs to conform to the message, not the other way around. The message always comes first; otherwise, your recipients won’t have a clue what to do with your email.

Say enough to motivate prospects to take your desired action. The more focused your email is the better.

Sometimes prospects need a little more information and encouragement to convert. Focus on the prospect. That’s the bottom line. Forget about trimming your writing to fit above the fold. That doesn’t matter. The only thing that matters is outweighing purchase hesitations with benefits that drive prospects to convert.

 Don’t Shout; It’s Spammy.

Avoid all caps and multiple exclamation marks in both the subject line and body of the email. Not only are all caps the equivalent of shouting online, but overusing them screams spammy email marketing. That will hurt your email open rate. In addition, if enough subscribers report you, it could also hurt your email deliverability or even get you blacklisted by your email newsletter service. Follow CTA best practices

Talk to the reader.

Always use “you” to make the reader feel engaged. Think of it as a respectful conversation in which it is your turn to talk about something that (hopefully) interests you both.

Using “you” in the copy also forces you to think about the customer as you write, which will make your messages stronger and more relevant. If you really want readers to click, then you have to sound like a real person. Avoid marketing speak and be conversational as if you’re talking to someone who’s sitting across the table from you.

Stop pushing your brand.

Emails should serve the customer not the product. Often times the marketing team, not the product team is in charge of the email flow and their directive is to grow. If you get myopic about that task, you forget that the most solid growth comes through simple, repeatable, service that is so good it is sharable. Serving customers come by meeting them in their email client with simple tasks and giving them more than they expect or more than they are paying for with their time.

Be a problem solver.

People buy solutions, not products. Write your copy to help the reader understand how your product or service will save them time or money, or generally make their life easier. Solving a problem also requires your recipient to trust you, that is, believe that you are an expert on the subject.

When in doubt, talk about the benefits of your product or service, not the features. It is great that your vacuum is bagless, but it’s better to point out that bagless vacuums don’t lose suction.

Be Relevant

Avoid generic marketing in favour of targeted marketing. Customer avatars give you broad segments you can focus on in copywriting, but within those, there are also smaller segments. After all, you are not going to send the same email to a new subscriber as to a repeat customer, are you?

Sending relevant email improves open and click-through rates, so segmentation is essential. Read our pro tips on email list segmentation to help with this.

Get Personal with Your Email Marketing Campaign.

Read any advice on writing email marketing copy that works, and it will include a tip about personalization. It is true that using people’s names in subject lines and email marketing copy gets their attention, but there is more to personalization than that.

We talked earlier about segmentation. Well, that affects personalization, too, because each segment is looking for something different from your emails. You can send different emails depending on the age, gender and location of your audience, whether they are looking for a personal or business purchase, etc.

Follow CTA best practices.

Aside from the subject line, the CTA is the most important part of your email marketing campaign, because that’s what’ll get subscribers to convert, by taking the action you’d like them to take. The internet is flooded with CTA best-practice recommendations; let’s see some of the best CTA practices.

  • Use only one CTA button

Don’t force your prospects to choose between two or more actions. Keep their attention focused on one thing. Just as cart abandonment emails have one purpose – to get prospects to purchase – each CTA button should have one objective-getting your prospects to click.

  • Include secondary CTAs only as linked text

There’s nothing wrong with having a secondary CTA, but it can’t be a button. Write your second CTA copy within a sentence and hyperlink. Always put the secondary CTA in a smaller font than the primary button CTA.

If you are facing problem in writing an email, please do refer our email templates. Need help with creating email-marketing copy that converts, as well as boosts sales and overall revenue for your company? Turn to the experts. Email us or give us a call at +1 415 800 3901 today.

Here are some few recommendations posts related to email marketing.

Marketing Director – Job Description and Metrics

Know About Marketing Director – Role, Responsibilities and Metrics - SaaSProspects.com

What is a Marketing Director?

The head of a company’s marketing department is the marketing director. A Marketing Director looks after a company’s marketing strategy, including policies, goals and initiatives. This position is to work on conducting marketing research and developing marketing plans for specific products or services in a company. He must be able to read and understand the marketplace and adjust plans accordingly. Depending on the company, he or she can be responsible for everything from analyzing markets to implementing sales strategies.

Have a Saas app targeted at CMOs and Marketing Directors? Leverage our curated and verified professional marketing directors list of high growth companies with validated email addresses

Armed with the information, marketing directors are able to set the selling price for the product that the company is promoting. This price point is the middle ground that marketing directors believe will be patronized by clients while bringing in profits for the firm.

The work of marketing directors is challenging because they play a very huge role in the product’s performance in the market. Creating the buzz about the product through advertising and other campaigns is just the first step. The more challenging part is coming up with a sales strategy that will actually convince the target audience to buy the product being marketed. If this fails, the company will suffer.

Marketing directors have to be constantly on the lookout for the company’s image and reputation even as they continually assess its marketplace standing. This means constantly meeting the needs of its clients even as the company puts forward the products and services to the public to ensure that these needs are being met. Marketing directors do not only have to know how the marketing department operates but also need to have knowledge about the other aspects of company operations.

For marketing directors to come up with a marketing strategy that works, they have to know what the latest trends are in the segment where they are planning to introduce their product. Analyzing trends requires research and marketing directors may do this themselves or they may designate a staff member to do it for them. Even if they assign the research to someone else, they still need to oversee the job and double check to ensure that they are being given the proper data. Accuracy is important since the promotional gimmicks and sales strategies that they will be initiated will be based on the figures and information found in the research.

Marketing directors need to have excellent interpersonal and leadership skills. They have to meet the members of their staff and even the directors and managers of other departments regularly to get updates on or talk about projects and other important matters. They also need to know how to accept failure and evaluate how and why a particular approach did not succeed so that the same mistake won’t happen again in future projects. Marketing directors also need to be firm when it comes to setting deadlines and setting expectations to their marketing team.

Key Product Marketing Metrics Every Marketing Director Should Track:

The challenge of measuring product marketing success is not a new one. Nearly every marketing leader I’ve asked about measuring product marketing impact has stated how difficult it is. Especially with marketing moving more and more in the direction of data-driven decisions and results, it becomes quite the challenge when marketers are unable to attribute tangible results to a team’s effort.

While it is difficult, it is not impossible, to measure the impact of product marketing. In fact, we may simply be at the earliest stages of developing tools and strategies for measuring the role. Product marketing is a diverse function serving many different stakeholders, and the role and priorities can vary significantly from company to company.

  • Tracking Overall Revenue Goal:

The ultimate goal of a marketing director or marketing team is to list overall revenue among their metrics, a reflection of the diverse nature of their efforts. This includes new acquisition and upsell/cross-sell/retention targets, and depending on the business and organizational goal, there will be a different level of focus on each. This can also trickle down into related goals, like the number of new customers acquired, retention rates, and average revenue per customer.

  • Tracking Win Rates:

Win rates are the key contributor to the company’s ability to hit revenue goals and closely reflect product marketing’s effort. Sales success is measured by win rates. Measuring overall win rates as well as slicing this data by the sales team, product, and competitor, can uncover strengths and opportunities and more closely direct and recognize the effort of the product marketing team.

  • Product Launch Metrics:

Product launches are the encapsulating miniature characteristics of the product marketing’s go-to-market strategy. They represent a focus on bringing awareness, demand, sales, and usage of a new product or feature. As such, product marketing can set specific goals around each of those areas in conjunction with other teams like demand generation.

Sample product launch metrics include:

  1. Trials started or demos requested.
  2. Content views, including product page views and video views.
  3. Press coverage for the announcement.
  4. New customer or upgrade revenue.
  5. Product usage or adoption of a new feature.

Don’t forget to set a timeframe for product launch metrics. This is key for helping attribute results to the launch effort, and to be able to close out the campaign and report on results.

  • Product Usage:

Product usage is another metric that can lead to overall revenue, specifically if the company has identified that usage of features A, B, C correlate with higher retention rates, higher revenue, or more upsells/cross-sells. Tracking product usage is likely a shared responsibility with product management, and product managers may very well also be tasked with improving certain usage metrics. Product marketing, however, may lead campaigns around improving usage of key features in order to impact retention and revenue.

  • Customer Happiness and Retention:

Similar to product usage, customer happiness metrics – such as NPS (Net Promoter Score) – can correlate with other key revenue metrics and be a relevant product marketing goal. Retention rates are an even more direct metric to align customer happiness with revenue goals.

 

Talent Acquisition Manager – Job Description and Metrics

Know About Talent Acquisition Manager – Role, Responsibilities and Metrics - SaaSProspects.com

What is a Talent Acquisition Manager?

Many people wondering “what is a talent acquisition manager?” and even the term talent acquisition is quite new. The job of a talent acquisition manager is the process of resourcing, attracting, recruiting, interviewing and onboarding employees to an organisation. It is a function of corporate recruiting and is usually housed within the Human Resources department.

Have a SaaS app targeted at Talent Acquisition Heads and Talent Acquisition Managers? Leverage our curated and verified talent acquisition managers list and decision makers of high growth companies with validated email addresses.

Talent acquisition now comprises a very broad field, since recruitment channels have multiplied and the scope of the recruiters’ job has broadened. Talent Acquisition Managers now head up employment marketing initiatives, branding campaigns, internal referral programs, and develop employee engagement metrics and retention programs. It’s a broad set of responsibilities that cover more internal policy and external communications than individual corporate recruiter jobs did in the past.

The talent acquisition specialist or manager devises strategy and recruitment process, as well as the actual execution of the sourcing or recruiting campaign. They may be involved not only in finding and screening candidates, but developing the corporate policy for talent bench-marking, talent assessment, and interviewing policies. Often the talent acquisition department will also either liaise with the legal department or retain their own legal specialists to ensure compatibility with employment law.

Responsibilities of a Talent Acquisition Manager:

  • Identify and source appropriate talent for current open roles within the organization.
  • Identify future talent needs and proactively recruiting and sourcing; develop talent pool or social engagements.
  • Manage the recruitment process and life-cycle, including initial assessments, interviews, and offers.
  • Counsel the candidate on corporate benefits, salary, and corporate environment.
  • Provide recruitment counsel and guidance to hiring managers and HR professionals with hiring and employment data. May develop specialized or competitive intelligence and research in regards to talent development or retention.
  • Develop college recruiting programs.
  • Manage and guide development of corporate employment resource.
  • Participate in employment events, such as career fairs.
  • Work with internal teams and hiring managers to assist with recruitment efforts.
  • Assist with both external and internal hiring efforts (internal recruitment meaning assessment of employees for different or more senior roles.)
  • Develop relationships with third party recruitment agencies and staffing firms and manage the procurement and measurement process.
  • Use social media, job boards, Internet sourcing, and other technical means to source candidates for open jobs.

Talent Acquisition Metrics:

1. Time To Start:

Yes, everyone measures time to start. This metric measures the average number of calendar days from the date a job requisition is approved to the date a new hire begins work.

Average annual time to start = Total number of calendar days between the date approved requisitions are received ÷ Total number of new hires for that year.

2. Cost per hire Vs Cost per vacancy:

Cost per hire is calculated by adding up all of your recruitment advertising, agency, travel and interview, relocation, employee referral bonus and HR department recruiter compensation and benefits costs and dividing it by the total number of new hires for the calendar year.

The basic method to calculate cost per vacancy is

Cost per vacancy = Your company’s revenue per employee (total revenue divided by the number of employees) ÷ Number of working days in a year.

Knowing what it costs you to hire compared to what it costs for the vacancy can help you determine if you need to improve your hiring process, bring on an agency or RPO to more effectively manage costs, and improve your succession process for critical roles.

3. Satisfaction rating:

Satisfaction ratings can be measured through surveys of candidates and new hires. While your overall metrics may be positive, it’s important to find out how people experience your hiring process.

Satisfaction plays into retention and into building an employer-of-choice culture and reputation in the talent community.

4. Quality of hires:

When you do hire, how long do people stay? What is their performance like? Are you getting top performers? If not, why not?

Track 90-day turnover by dividing the total turnover of employees with 0 to 3 months of service by the total number of external hires; monitor one year turnover by dividing the total turnover of employees with 0 to 1 year of service by the regular headcount with 0 – 1 year of service; and measure new hire performance rates by dividing the average performance rating of regular headcount with 0 – 1 year of service by the average performance rating of regular headcount.

5. Sourcing:

It’s easy to throw money at job boards, but are you hiring anyone from there? Measure the effectiveness of the tools you are using: social media, email campaigns, job boards, every sourcing channel.

The percentage for a specific source = The number of source hires ÷ The number of external hires.

Chances are you can be cutting costs while improving quality of hires.

 

Sales Director – Job Description and Metrics

Know About Sales Director – Role, Responsibilities and Metrics - SaaSProspects.com

What is a Sales Director?

A Sales director is a person who is employed by a business to manage the activities of subordinate salespeople and to develop and implement an effective selling strategy for the business. The sales director has full control over the sales function and staff within the budget allocated by a business and often part of its higher management.

Have a SaaS app targeted at Sales Heads and Sales Directors? Leverage our curated and verified sales directors list and decision makers of high growth companies with validated email addresses.

Responsibilities of a Sales Director:

  • To build and maintain strong, long-lasting customer relationships.
  • To become a partner with customers to understand their business needs and objectives.
  • To develop and execute a strategic plan to achieve sales targets and expand our customer base.
  • To own and hit/exceed annual sales targets within assigned territory and accounts.
  • To effectively communicate the value proposition through proposals and presentations.
  • To understand category-specific landscapes and trends.
  • Reporting on forces that shift tactical budgets and strategic direction of accounts.

Metrics every sales director should measure:

  • Tracking Win Vs Loss Rate:

A Sales Director should understand the reasons why clients buy or not buy a company’s product or service. This information is important as it can assist in improving a sales team’s close rate thus gaining more market share for the business.

  • Track Cross-sell and Upsell opportunities:

Cross-selling and upselling can be complex and risky. However, with the challenges of new customer acquisition, businesses must find ways to improve sales from existing customers. With the right analytics tool, businesses can identify cross-selling and upselling opportunities in the organisation and ultimately, generate more sales for the business.

  • Track Sales pipeline:

The sales pipeline is a great way to measure a company’s health. It shows the sales opportunities the company currently has and an estimation of the amount of revenue the sales team is going to generate in the coming months. If the opportunities within the pipeline are managed well, the sales team will stay organised and feel more in control of their sales figures, giving the sales manager more confidence in the targets that can be achieved.

Let’s see what are the metrics that should be measured in a sales team’s pipeline:

  • The number of potential deals in your pipeline.
  • The average size of a deal (in $) in your pipeline.
  • The average percentage of deals that are converted from leads to customers.
  • Average time deals are in the pipeline (measured in days).

 

  • Tracking Sales Revenue:

Measuring the revenue a sales team brings in, instead of only their profit margin, gives a sales director more insight into the business’ performance. If a company experiences steady “top-line growth”, it could be viewed that the performance in that period was positive even if the earnings growth or “bottom-line growth” didn’t change.

Measuring revenue allows you to identify the profitability of the business. By calculating the profit ratio (divide net income by sales revenue) businesses can reveal how much of every dollar brought in by sales actually makes it to the bottom line.

  • Tracking Sales Leakage Funnel:

It’s imperative to know where the holes in your funnel are, how they occurred and how you can essentially ‘plug’ them. Things to review include:

  • Lead response time: a business that responds quickly to a sales qualified lead is more likely to win the sale.
  • The rate of follow up contact: persistence is key, a sales teams should be continually following up with a lead via phone calls and emails until they are deemed no longer qualified.

By constantly monitoring this data and putting means in place to avoid opportunity leakage, the overall sales numbers will improve.

 

IT Director – Job Description and Metrics

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What is IT (Information Technology) Director?

An IT Director is an employee in charge of technology of an organisation. Information technology (IT) directors are in demand across many industries. It seems nearly every company has at least one person who serves in this capacity. Depending on the scale and purpose of a company, the role of the director of technology can vary greatly, especially as there could be several directors of technology. These tech-minded individuals are responsible for managing computer resources so that a company’s IT systems are well-maintained and carefully protected.

As a director of technology, your set of responsibilities may include overseeing the infrastructure of technical operations, tracking the technology itself as well as the IT team in order to achieve goals, meet quotas, eliminate security risks, increase user satisfaction, and maintaining operations and systems.

IT directors serve as a primary point of contact between the professionals in the IT department and those in operations, business, customer service, sales, and other areas. The specific responsibilities assigned to the IT director will vary by industry, and a solid knowledge of the particular sector a company is in important for IT directors to fill their roles.

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In this article, we are looking at the vital position of IT Director, including the roles and responsibilities and metrics.

Responsibilities of an IT Director:

IT directors are responsible for resolving the issues that naturally arise from any type of business technology. Some of the common responsibilities that you may find in an IT director job description include:

  • Identifying market opportunities in IT.
  • Collaborating with information engineers to solve business challenges.
  • Organizing and implementing disaster recovery systems.
  • Recommending new systems and software to senior executives.
  • Researching new products and keeping up with the latest technology innovations.
  • Creating financial budgets for senior executives.
  • Supervising managers and employees in the IT department.
  • Collaborating with information engineers to solve management problems.
  • Directing networks to improve efficiency.
  • Overseeing technical projects that are designed to improve upon or achieve business goals.
  • Organizing programs to increase efficiency.

Operational metrics

Online application performance: The average time it takes to render a screen or page. It is also important to measure the variability of performance.

Online application availability: The percentage of time the application is functioning properly. This can be difficult to define. If the application is available for some users but not all, is it “available?” What if most functions are working but a minor function is not? To address this problem, I like to define the primary functions an application performs. Then, if any of these functions are unavailable, the application is considered down even if most of the application is usable. Also, if the application is primarily used during business hours, I like to have separate metrics for that time versus other times. So, the metrics might be primary functions during business hours; all functions during business hours; primary functions 24×7; and all functions 24×7.

Batch SLAs met: The percentage of key batch jobs that finish on time.

Production incidents: The number of production problems by severity.

Supplemental operational metrics: Other metrics that might be used to enhance operational effectiveness include the number of unscheduled changes to the production systems, the throughput of batch processes, complexity scores for major applications (indicating how difficult they are to maintain), architectural integrity (the percent of applications on preferred technologies, another indication of how difficult applications are to maintain) and the variability of online application performance.

This last item requires a quick but important note. Business users can get quite frustrated when online production issues are simply defined as “we are experiencing slowdowns.” One technique to solve this problem is to set a target for each screen or page in the application with the target defined as the time 90 percent of the screen or page occurrences will render. Then, actual performance can be compared to this goal and the percentage of time the goal is hit provides a good indicator of the customer service level (CSL).

With this technique, both the business and technology know how the application is doing when the CSL number is reported. If an application’s CSL is 90 percent, the application is running exactly as expected whereas a CSL of 85 percent or 50 percent describe different degrees of not achieving expected results.

Delivery metrics

Project satisfaction: The average score from post-project surveys completed by business partners. After each project, it is important to solicit feedback from the business. The survey should contain one summary question for the project satisfaction metric (e.g., what is your overall satisfaction with this project on a scale of one to five?), a few more specific questions and an area for written comments. The survey should also be completed by the technology group to gain further insights on the areas that could be improved moving forward, but these scores are not included in the metric as they tend to be based on the high side.

Project delivery: The percentage of projects delivered on time. “On time” is another tricky concept. For projects using the waterfall methodology, the projected delivery date can vary greatly once the team engages in the design process. I have found it useful to make sure business partners know that the delivery date is not set until the design is done and therefore, this metric uses that date for a target. For Agile projects, this metric is not relevant as the delivery date is almost always met by adjusting the scope.

Project cost: The percentage of projects delivered within the cost estimate. For this metric, I also use the post design cost estimate for the same reasons noted in the previous section. Again, Agile projects are less likely to benefit from this metric.

Defect containment: The percentage of defects contained in the test environments. It is well known that defects are much more expensive to fix in production. This metric counts the defects corrected during the development process and compares this count to any defects found in the first 30 days of production. While 30 days may seem like a short period, I have tried using the first 90 days of production for this, but the wait to determine the metric was more problematic than the additional information provided by the longer timeframe.

Supplemental delivery metrics:  Additional metrics that might be included in this area: how well interim deliverables, such as the completion of design, are hit on time; how well first estimates compare to the final project cost; how many changes are made during the freeze between project completion and the production install; and how many projects require an unscheduled change after installation.

Financial metrics

Budget variance: Actual costs compared to budgeted costs. This should be done for both direct expenses (salaries) and inter-company expenses (allocations from other areas) since direct expenses are more controllable.

Resource cost: The average cost of a technology resource. This metric provides a good view of how well managers are controlling costs by using cheaper outsourcing labor, being thoughtful in the use of higher priced temporary labour and managing an organization that is not top heavy with expensive employees (discussed in more detail in the Supplemental Financial Metrics section). Some organizations set targets for outsourcing (e.g., 30 percent of the workforce), but I think the overall resource cost metric is much more powerful. If managers believe they can be more productive and keep costs down using a variety of techniques, why not let them rather than focus on a single strategy?

Supplemental financial metrics: There are several other metrics that can be useful for organizations. Simply keeping a running total of the dollars saved from cost initiatives (e.g., moving to cheaper technologies) can help keep the focus on these projects. Tracking costs by activity (e.g., development versus maintenance versus running the systems versus other costs) can highlight areas for improvement.

Finally, as alluded to above, many organizations have a tendency to become top heavy over time so it is useful to track this in a metric. For example, if an organization has eight levels starting with new college graduates and going to vice presidents, a simple metric can be created by assigning a number to each employee (e.g., new college graduates = 1, VPs = 8), adding up the numbers and dividing the sum by the number of employees to determine the average level in the group.

HR Director – Job Description and Metrics

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Who is an HR director? 

HR is the acronym for Human Resource, ultimately responsible for all Human Resource activities within a business. This will include working across various sites to ensure that all company strategies, policies and procedures are being implemented correctly and effectively and ensuring the company is legally compliant with all HR related legislation.

Needless to say, the position of HR director is one of enormous responsibility and authority within the business, as directors will ultimately answer directly to the CEO of the business on all HR related matters.

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What does an HR Director do?

HR Director’s responsibilities differ depending upon the company. If it is a small company, the HR Director may often take on many of the tasks undertaken by HR Managers. If it is a large company, they are responsible for the overall strategy and budgeting of the HR Department.

What are the responsibilities of an HR Director?

HR directors are responsible for the smooth and profitable operation of a company’s human resources department. Typically, they supervise and provide consultation to management on strategic staffing plans, compensation, benefits, training and development, budget, and labour relations. An HR director is also expected to take a leadership role in developing a culture that enables employees to perform in accordance with a firm’s objectives.

HR directors can effectively plan, design, develop and evaluate human resource-related initiatives that support organizational strategic goals. In addition, HR directors can lead performance management, talent assessment, and effective labour relationships, including negotiating and administering labour agreements.

Daily tasks may vary, but a typical HR director supervises staff and reports to the chief executive officer on issues regarding implementation of policies and procedures, safety of the workforce, recruiting and hiring high-performing employees, and labour, legislative and other human resources issues.

HR directors can also direct the development and implementation of organizational development programs, employee orientation and training programs, benefits plans, policies and guidelines, database management procedures, equal opportunity employment programs, and employee records and documentation policies. Evaluating effectiveness through compiling and analyzing data can be another important function of the HR director, and they typically prepare and distribute various reports on HR metrics to ensure needs are met.

Ensuring compliance with federal, state and local laws and industry regulations is also vital to the continued success and profitability of a firm, as is advising department managers on legal implications of HR issues related to discipline and employee grievances. Planning and overseeing the HR department budget can be an additional duty of the HR director.

Some of the HR Metrics example in recruitment:

  • Time to Hire: Recruiting processes can take far too long at some companies and it can mean that you lose talent. Having a recruitment process is around 4-6 weeks to fill positions is desirable in order to save time and money. The time to hire is from when a candidate starts the interview process until they accept your offer.
  • Cost per Hire: Like the time to hire, the ‘cost per hire’ metric shows how much it costs the company to hire new employees. This also serves as an indicator of the efficiency of the recruitment process.
  • Offer acceptance ratio: This is a simple metric of how many people you offer jobs to accept them versus how many declines. This will tell you if your offerings are off- i.e. compensation is too low, no benefits, etc…
  • Early turnover: This is arguably the most important metric to determine higher success in a company.
    This early leaver metric indicates whether there is a mismatch between the person and the company or between the person and his/her position. Early turnover is also very expensive. It usually takes 6 to 12 months before employees have fully learned the ropes and reach their ‘Optimum Productivity Level’.
  • Average time until promotion: This is how long it takes for an employee to either be promoted for exceptional success. It sounds like an odd metric until perhaps you think of how many people leave you around the 2-5 year mark after not getting a promotion.

Take your employee base and calculate how long it took for any of them to be promoted, and if they have been. If you don’t do promotions, consider doing this calculation with pay raises instead. Then divide the amount of time by the number of employees that were promoted.

  • Billable hours per employee:

If you have a small project management firm, or marketing firm, or another business where you bill out to clients, you will want to use this metric to figure out if your staffing is in alignment with your client needs. Law firms also commonly use this and have a minimum number of hours per lawyer needed each month.

You can do this over a week, month, or other set periods of time. Take the number of hours you billed out and divide it by the number of your employees. You will want something around 35 hours billable per week minimum for full-time employees (less than that and they are spending too much time on internal issues most likely).

 

 

Finance Director – Job Description and Metrics

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Who is a Finance Director? Finance directors are dealing with the responsibility for their company’s financial health with members of senior executive team. They combine operational and strategic roles, manage accounting and financial control functions, and establish a financial strategy for the profitable long-term growth of the business. Finance directors also support and develop a strategy to guide key business initiatives, according to Ernst & Young. To fulfil this dual role, they must have the versatility and talent to meet a continually changing set of circumstances.

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Key roles of a financial director:

While an accountant keeps an eye on day-to-day accounts, a finance director’s role is much more of a tragic one. Here are some of the key responsibilities they should be taking care of:

1. Support to MD or CEO: Financial Director is like a ‘right hand’ to an MD or CEO. They provide ongoing support and guidance to help ensure the company plans are viable and in line with financial objectives.

2. Strategy: They analyse the data collated by other accounting staff in order to identify opportunities and create robust plans for improving core functions such as pricing, distribution, marketing and remuneration policies.

3. Minimise risk: A financial director is also tasked with identifying risks and assessing any potential impact of industry or trading changes and fluctuations.

4. Investment: Suggesting whether investing in other areas of your organisation to encourage business growth or seeking investment from external sources, your FD will help you to maximise opportunities and ensure that you make informed decisions without taking unnecessary risks. They’ll help you to get the best value from any deal you make, in turn giving you a return on the investment you make into their fees or salary.

5. Metrics and reporting: Senior management needs a clear view of what’s happening across all business functions in order to ensure stability and longevity. An FD will drive the identification of all the appropriate metrics and accurate reports needed at the outset before any business decisions are made, giving management both the broad overview and in-depth details needed to increase profitability and potential. A skilled FD will also be able to analyse and interpret the data to help simplify decision making for the management.

6. Financial leadership: Every department needs help to improve systems, procedures and policies. Your financial director provides leadership across all functions and departmental decisions, giving you the confidence that any changes or adjustments are based on concrete facts and not just a ‘flight of fancy’. They’ll also provide leadership to other members of your financial team, helping to develop their skills and ensure that information is being processed in the most effective and efficient way possible.

Responsibilities of a Finance Director:

Financial control is a key responsibility of finance directors. They set budgets and work closely with department heads to ensure that income and expenditures remain within the target. They maintain control over all financial transactions and take responsibility for managing the company’s liquidity, ensuring that it always has access to cash and sources of credit. Finance directors develop and enforce policies to minimize risk and ensure that the company reports its financial position accurately. Depending on the size of the company, they may recruit and manage a team of accountants and financial controllers to handle day-to-day tasks.

Metrics Finance Director Should be Measuring:

Some essential KPI’s every Finance Director should start considering

  • Working Capital KPI: Cash in hand is called working capital. It is calculated by excluding current assets such as on-hand cash, short-term investments and liabilities like loans, accounts payable and accrued expenses. It creates a picture of your business’s financial health by evaluating available assets that meet short-term financial liabilities.
  • Operating Cash Flow KPI: The Operating Cash Flow KPI is another important way to monitor the financial health of your business. In analyzing this financial KPI, it’s crucial to compare it to the total capital employed. This analysis helps you find out if the operational aspect of your business is producing enough cash to sustain the capital investments that you are putting into your business.
  • Current Ratio KPI: The Current Ratio KPI weights your assets, such as accounts receivable, against current liabilities, including accounts payable, to help you understand the solvency of your business.
  • Return on Equity KPI: Return on Equity (ROE) is a financial KPI that measures your organization’s net income against each unit of shareholder equity (or net worth). ROE tells you if your net income is enough for a company of your size by comparing it to the overall wealth of your business. Basically, it doesn’t matter what you’re worth right now (net worth) if you aren’t generating enough net income, because the latter will determine how much you’ll likely be worth in the future.
  • Debt to Equity Ratio KPI: The debt to equity ratio measures how your organization is funding its growth and how effectively you are using shareholder investments. Calculated by taking your company’s total liabilities against shareholder equity (net worth), it’s the other side of the coin to the REO KPI mentioned in number five. A high debt-to-equity ratio is evidence of an organization fueling growth by accumulating debt. This financial KPI keeps you accountable.
  • Customer Satisfaction KPI: FD’s often consider budget and time targets as benchmarks for successful project delivery. While those KPIs are important, the ultimate test is customer satisfaction. The Net Promoter Score is a simple and effective measurement of how well you are serving your clientele. This score is calculated from responses on a scale of 1-10 given to a single question: How likely is it that you would recommend our company/product/service to a friend or colleague? More than just a financial KPI, this widely applicable measure is informative for many different departments.