 We are all inundated with data and analytics at work. We have plenty of information, but are often left feeling like we lack knowledge about how much progress we’re making on a project or initiative. All the key performance metrics (KPIs) in the world don’t help – you need just a handful of the pertinent metrics. So which metrics should YOU follow to measure progress? Your Industry and Business Model Dictates Your Metrics.Key performance metrics (KPIs) vary significantly depending on your company’s industry and business model, as each has different drivers of success. However, regardless of industry, the right KPIs enable you to measure progress, make informed decisions, and align strategies with goals. Obviously, we can’t discuss every industry, but let’s look at a few popular industries and the best metrics to follow for each… Metrics for Product-Based Businesses.For product-based businesses, especially in manufacturing or retail, critical KPIs include:
Inventory turnover reflects how efficiently your company manages stock and demand. Gross profit margin reveals profitability after production costs, while COGS helps track production efficiency. Additionally, return rates and supply chain lead time are important to assess quality and operational effectiveness. Metrics for Service-Based Businesses.In contrast, service-based companies focus more on human capital and customer satisfaction. Key metrics include:
These help measure how effectively services are delivered and how clients perceive the value received. For consultancy and agencies, revenue per employee and project margin are also important to gauge performance. Metrics for SaaS.If you work at a software-as-a-service (SaaS) business, recurring revenue models mean different priorities. Important KPIs include:
Tracking active users and engagement rate can also indicate product adoption and potential for upselling. A low CAC and high LTV indicate efficient growth. Metrics for e-Commerce.E-commerce companies track similar metrics to retail, with emphasis on digital engagement. Key KPIs include:
Traffic sources and cost per acquisition (CPA) are essential for evaluating marketing performance. Fulfillment metrics, like delivery time and order accuracy, are also critical. Metrics for Financial Services.In financial services, risk and return are central. Metrics to track are:
To understand your profitability and risk exposure, look at your return on equity (ROE), net interest margin (NIM), and non-performing loan (NPL) ratio. To gauge scale and trust, focus on customer growth rate and assets under management (AUM). The Takeaway.Ultimately, the metrics you follow must align with your strategic objectives. For any business, tracking a mix of financial, operational, and customer-focused metrics ensures balanced performance monitoring. Your choice of metrics should reflect not only your industry but also your company’s growth stage, competitive landscape, and core value proposition.
What about you? Which metrics do you follow? Please comment – I’d love to hear your thoughts. Thanks, Tom Myers
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 To be successful in business, you must execute on many fronts – product development, marketing, sales, customer service, human resources, etc. However, when I consult with startups and established small- & medium-sized businesses (SMBs), I find choosing the right business model to be critical. What is a “business model”? I define it as how you acquire customers and make money. It encompasses the core aspects of your business, including your:
Essentially, a business model explains how your company operates and makes money. It serves as a blueprint for running your business, guiding decisions and helping all of your stakeholders (e.g. management, staff, investors, customers) understand the company’s direction. The Most Common Types of Business Models.There are several types of business models, each suited to different industries and customer needs. Some common types include:
Choosing the Right Business Model for Your Company.So which is the right business model for your company? You must evaluate several key factors when choosing a business model:
The Takeaway.Ultimately, the best business model aligns with your goals, capabilities, and customer needs while offering flexibility for growth and adaptation. Testing and refining your model over time is essential for long-term success.
What about you? Which business model does your company use? What factors influenced choosing it? Please comment – I’d love to hear your thoughts. Thanks, Tom Myers  Caption: © rawpixel, 123RF Free Images Whether your company is a startup, or a more established small- or mid-size business (SMB), determining the size and characteristics of your target market is a critical step in developing an effective marketing strategy. It involves identifying who your potential customers are, how many of them exist, and what their preferences, behaviors, and demographics are. This process helps you tailor your products, services, and messaging to best meet the needs of your ideal audience. Here are five (5) steps to effectively define your target market… Step 1: Define Your Market SegmentsStart by segmenting the market based on key factors such as demographics (age, gender, income, education), psychographics (lifestyle, values, interests), geographic location, and behavioral traits (purchasing habits, brand loyalty, usage rates). For instance, a luxury skincare brand might target affluent women aged 30–55 who value high-quality, eco-conscious products. Step 2: Conduct Market ResearchUse both primary and secondary research to gather data. Primary research includes surveys, interviews, focus groups, and direct customer feedback. Secondary research involves analyzing existing data from industry reports, government publications, trade associations, and competitor analysis. Tools like Google Trends, Statista, or census data can offer valuable insights into market trends and customer behaviors. I need to stress a point here – direct customer feedback is invaluable. If you have limited resources, put them toward talking to potential customers and take good notes. Step 3: Evaluate Market SizeEstimate the total addressable market (TAM), serviceable available market (SAM), and serviceable obtainable market (SOM). TAM is the overall revenue opportunity for your product or service. SAM is the portion of TAM targeted by your products or services within your reach. SOM is the segment you can realistically capture, considering your resources, competition, and capabilities. For example, if your business sells vegan protein bars, you would start with the number of health-conscious consumers, then narrow down to those seeking vegan products in specific regions. Step 4: Create Customer PersonasBuild detailed profiles of your ideal customers based on your research. Include characteristics like age, job title, buying motivations, pain points, and preferred communication channels. These personas help humanize your target audience and guide product development and marketing efforts. Step 5: Analyze and ValidateTest your assumptions through pilot campaigns or product launches in small markets. Monitor customer responses and refine your targeting strategy based on real-world data. The Takeaway.Understanding the size and characteristics of your target market is foundational to business success. It allows you to focus your resources efficiently, develop products that meet specific needs, and craft compelling marketing messages that resonate with the right audience.
What about you? How does your organization determine its target market? What techniques do you think work best? Please comment – I’d love to hear your thoughts. Thanks, Tom Myers In recent weeks I’ve talked about understanding the PROBLEM you’re trying to solve for your customers, and the ALTERNATIVE SOLUTIONS available to them. Another important aspect of getting your overall strategy right is creating a lasting competitive advantage. Without that, you’ll either muddle along in the middle of the pack (best case) or fail completely (worst case). So let’s talk a bit about a competitive advantage – what is it, how do you build one, and some examples in the marketplace. What is a (true) competitive advantage?When I talk to founders and C-suite executives, no one has ever said, “We don’t have any competitive advantage.” Everyone thinks they have an advantage over their competitors in some way. Too often I hear a lot of mumbo jumbo speech that boils down to:
But are any of these a true competitive advantage? A true competitive advantage in business is a unique, sustainable attribute or capability that enables a company to outperform its rivals consistently. It is not merely about having a good product or temporary cost savings but involves establishing a long-term strategic position that competitors find difficult to replicate or surpass. At its core, a competitive advantage must deliver superior value to customers while simultaneously allowing the business to operate more efficiently or effectively than its competitors. This advantage can take various forms, and we’ll talk about those next. However, what distinguishes a TRUE competitive advantage is its sustainability — how well it can withstand market changes, competitor innovations, and evolving customer preferences. 10 examples of a durable competitive advantage.Here are ten (10) examples of competitive advantages that companies can possess:
Each of these competitive advantages helps a company defend its market position, improve profitability, or grow faster than competitors. Neither Rome nor a competitive advantage was built in a day.Like anything worth doing, gaining a true, durable competitive advantage doesn’t happen overnight. It takes time and a lot of hard work. So the sooner you start identifying your potential competitive advantage, the better. Here’s some thoughts on how to do so… A true competitive advantage is supported by alignment across the organization. Every department, from product development to marketing to customer service, must contribute coherently toward reinforcing the advantage. Strategic fit and execution discipline are essential; otherwise, the advantage can quickly erode. Importantly, adaptability is a component of sustainability. Businesses with enduring advantages are those that can anticipate market shifts and reconfigure resources proactively. Amazon, for instance, has maintained an edge by continually investing in innovation and expanding into adjacent markets while maintaining customer obsession and operational efficiency. The Takeaway.A true competitive advantage lies in the intersection of unique value creation, operational excellence, and long-term sustainability. It must be embedded deeply within your company’s operations, culture, and strategy — resistant to imitation and flexible enough to evolve in response to change.
What about you? Does your organization have a real competitive advantage? If not, what challenges are you facing? Please comment – I’d love to hear your thoughts. Thanks, Tom Myers Understanding the existing alternatives that your customers use to solve their problems is crucial when aiming to develop and market successful products or services. These alternatives — whether they are direct competitors, workarounds, or DIY methods — represent the status quo that your customers currently rely on. By identifying these existing solutions and analyzing their limitations, you can uncover valuable insights into unmet needs, customer frustrations, and opportunities for differentiation. What are the alternatives to your product or service?Knowing the alternatives gives you a clear view of your customer’s decision-making landscape. It highlights what your customers value, what trade-offs they are willing to accept, and what gaps persist in the current market. For example, if users are cobbling together spreadsheets, free tools, and manual processes to accomplish a task, it signals that no single solution fully meets their needs. This insight enables you to build products that offer greater integration, ease of use, or efficiency—qualities that directly address your customer’s pain points. Why don’t alternatives fully satisfy your customer?Understanding these alternatives reveals the specific shortcomings that your customers experience. These shortfalls might include poor usability, high costs, lack of customization, insufficient support, or simply the time and effort required to make the solution work. You can leverage this information not just to create better solutions, but also to shape compelling marketing messages. Demonstrating how a product overcomes the limitations of existing options helps build trust and quickly communicates value. Additionally, studying current alternatives helps you avoid building “me-too” products that fail to stand out. Sadly, I see this a lot in my advisory and fractional CXO work. Many startups and even established companies fall into the trap of replicating features without addressing the core frustrations users have with existing solutions. By contrast, companies that deeply understand the competitive landscape and customer experience can focus on meaningful innovation—enhancing the user journey in ways that matter most. Moreover, understanding existing alternatives supports strategic pricing, positioning, and customer segmentation. It allows you to determine whether to compete on price, quality, convenience, or a unique feature set. It also clarifies which market segments are most dissatisfied with current options and therefore more likely to adopt a new solution. The Takeaway.A thorough understanding of the alternatives your customers already use — and the shortcomings of those options — enables a company to build better products, communicate value more clearly, and position itself effectively in the market. It shifts innovation from guesswork to insight-driven strategy, ultimately increasing the likelihood of market success.
What about you? Does your organization fully understand the existing alternatives your customers use? Please comment – I’d love to hear your thoughts. Thanks, Tom Myers About the Author: Tom Myers is an accomplished business leader with over two decades of success building organizations from the ground up with multiple successful exits. He holds strong expertise in designing and implementing winning strategies, change management, improving operations, driving business development through sales, marketing, PR, and strategic partnerships, and effectively building and leading teams toward a common goal. He has effectively served in C-suite and Board positions in for-profit and non-profit organizations, and currently offers Fractional CXO and advisory services via V2R Ventures.  Does your company really understand your customers’ problem, who is suffering, and how much PAIN are they in? – V2R Whether I’m helping a startup or a more established business with its strategy, I’m struck how often I hear conflicting answers from management, staff, and customers when I ask… What is the PROBLEM we’re solving? That sounds like a simple question for any organization to sort out. However, I’m amazed how often a company’s management will (confidently) tell me what problem they are solving. Then I ask their staff, and get a different answer – and yet another answer when I ask their customers. Understanding the problems customers face is one of the most crucial responsibilities a company has. It goes far beyond simply offering a product or service — it requires actively listening to the market and empathizing with real human experiences. Without this deep understanding, companies risk creating solutions that miss the mark, as well as wasting time, money, and goodwill. Knowing exactly what problems exist, who experiences them, and how severe these issues are can be the difference between a thriving business and a failing one. At its core, business success stems from relevance. A company that understands its customers’ challenges is more likely to design products, services, and messaging that resonate. This begins with identifying the specific problem. Vague assumptions like “our users want convenience” aren’t actionable. A company must investigate the root of the problem:
Real understanding comes from interviews, data analysis, and customer feedback — not guesswork. Who exactly is suffering, and how bad is the pain?Equally important to WHAT is the problem, is identifying WHO suffers from the problem. Not every user experiences the same pain in the same way. Segmentation helps companies focus their efforts on the group that feels the pain most acutely, whether it’s first-time users confused by a process, small businesses unable to afford legacy tools, or busy parents juggling responsibilities. This clarity shapes product design, marketing, and prioritization. Finally, a company must understand the severity of the problem. Some issues are minor annoyances, while others are true pain points — barriers that create frustration, lost time, or even lost revenue. The more painful the problem, the more urgent and valuable a solution becomes. This determines not only how much customers are willing to pay, but also how quickly they’ll adopt a solution. Misjudging the severity can lead to overinvesting in solutions no one is desperate for — or worse, underestimating a critical need and losing customers to more attentive competitors. The Takeaway.When a company understands the problem, the person affected, and the pain level involved, it can act with precision and empathy. It can develop targeted solutions, communicate more persuasively, and earn customer trust. In today’s competitive landscape, customer understanding isn’t a luxury — it’s a necessity. It turns assumptions into insight, products into solutions, and customers into loyal advocates.
What about you? Does your organization fully understand the problem it is trying to solve? Please comment – I’d love to hear your thoughts. Thanks, Tom Myers |
AuthorTom Myers is an accomplished business leader with over two decades of success building organizations from the ground up with multiple successful exits. He holds strong expertise in designing and implementing winning strategies, change management, improving operations, driving business development through sales, marketing, PR, and strategic partnerships, and effectively building and leading teams toward a common goal. He has effectively served in C-suite and Board positions in for-profit and non-profit organizations, and currently offers Fractional CXO and advisory services via V2R Ventures. ArchivesCategories |
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