E-commerce Bootcamp | Measure 06
Whether you're setting up from scratch, or whether you're optimising something you already have, I think it's really, really important that you define what success looks like, you define what your teams are doing and you define something that you can measure across all of the teams. And generally, the way that you would do that is get everybody into a room and think about really three things and the North Star metric. You can Google it, it is something that's been coined by a lot of Silicon Valley startups. And essentially, the framework tells you, you've got to measure three things.
One is an increase in revenue. So obviously, whatever you do online, you want to make sure that it's bringing in money unless you're an NGO. And in which case, you want to bring in more money to support the businesses that you support. And it needs to reflect customer value. So that could look different for different businesses, depending on which vertical you’re in and measure progress for yourself and for your teams, I think it's really important that you feel like that both you and your teams, if you have big teams feel motivated and know where they're heading. I think it was actually Jeff Bezos, from Amazon, who just spoke a lot about making sure that everybody's pulling in the same direction. And I think, having been part of many different businesses, it's really important that everybody's aligned, your management team, your executive team, even your own team, or even yourself, you must know, what you're measuring. And you think about how you impact that from an online point of view.
So the metric of Northstar is the framework of a Northstar, some people refer to it as a constellation of metrics as well. So you can think about all the different metrics that you would want to measure as a business, when you set up your ecommerce platform, or where you take your shop online, or even when you take your lead business online. So, the framework that you really want to think through is, how do we grow? How does my product grow? What brings me more revenue? How do I know that my customers are happy? How do I measure that? And what do I feed back to the team. And think about things like e-commerce, things like the number of weekly customers who've started on their first order. And think about things like the number of daily purchases, or maybe even customer lifetime value.
So depending on what your business is, figure out how long each customer stays or how often they come back to think about all of those things and really think about what matters to you as a business and to all of your teams. And then depending on where you are, that could also just be things like the number of leads coming in.
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