Real-time revenue optimization, metrics for multi-channel retailing

I was recently blown away at seeing the sophisticated measurement and real-time optimization systems of a large multi-channel retailer and their ability to not only measure, but influence in real-time the metric of revenue per minute. It was almost like watching a highly active trader on the stock exchange make minute-by-minute decisions on buying or selling stock. Very cool stuff.

While not every business has the integrated measurement systems, high transaction volume and purchase activity required to use revenue per minute as a key metric, the ability to define, track against and measure KPI’s is something that every business should have in place.

Back to my story though, what was even more impressive about interacting with this retailer was that in speaking with employees throughout the company it was clear that this KPI of revenue per minute was fully ingrained. When new ideas were discussed, new marketing programs or advertising tactics, the conversation usually got back to evaluating those ideas against their ability to impact this KPI.

This is another really important point…while it’s great to have KPI’s, if they aren’t communicated broadly and referenced in decision making around the rationale for your marketing investments, then you’re simply not getting the full value and power out of defining your KPI’s.
So what are your KPI’s and how do you communicate them throughout your organization?