Archive | November, 2009

Demand Rating™ Changes Everything

Posted by: Mark Upson Demand Rating™ is an approach that changes everything.  When you reduce demand/loyalty to a quantifiable number a world of possibilities come into play.  Suddenly, demand can be understood over time, and it can be understood in comparison to other specific subscribers, to segments of subscribers and across product lines.  High demand ratings are good and low ratings are bad, and the rating implicitly incorporates sales risk and opportunity into the equation.  Demand Rating enables subscribers to be averaged, ranked and compared.  Instead of relying upon the intuition of account managers as an indicator of subscriber loyalty, Demand Rating uses analytics.  And it’s useful across a broad set of functions in the organization.  For Sales, Demand Ratings […]

Demand Rating™—Quantifying Subscriber Loyalty

Portfolio View

Posted by: Mark Upson What if you could track your subscriber relationships as easily as your financial portfolio? Think of Demand Rating™ as the P/E Ratio for the subscriber relationship—it’s the strength of product demand in a single number. Where the P/E ratio for a company is a financial indicator of investor demand for a company’s stock, giving investors a single, normalized number that can be analyzed and compared across the portfolio, Demand Rating gives that same type of clarity for the strength of the subscriber relationship, i.e., subscriber loyalty. Pretty powerful stuff considering most companies must rely upon the subjectivity of the account team to determine subscriber loyalty.  Yes, they use pseudo numbers like “confidence level” with guidelines for […]

Knowing What’s Knowable

Posted by: Pete Horadan So what is knowable?  The health of the recurring-revenue business really revolves around a full understanding of customer demand, so the critical metric needed is a measure of that demand, or a demand rate. There are three, interrelated  components of demand—usage (session data), contract data (terms of the customer relationship) and firmographics (the demographics of an organization.)  Usage data, in the subscription world, describes what is consumed and happens over time.  It’s not about a single user visit, but about aggregated groups of users on different devices, at different locations.  It’s a highly dynamic longitudinal view of the customer, so logging and measuring it is tricky. Contract data is the information about the business relationship—what licenses […]

The Need for a Content to Customer About Face

Posted by: Pete Horadan Last week, Matt reflected on how the changing business environment has made customer demand metrics derived from usage data mission critical.  So I thought that I’d pick up where he left off in terms of what is missing from current web analytics.   Web Analytics one piece of the puzzle.  Web analytics are an importance piece of the analytical puzzle.  Through logfile, page tagging and click analytics technology, organizations can get a good understanding of the popularity of the content they are providing to their customers.  Hits, Page Views, Visits, Sessions, Bounce Rate, Click-paths  and % Exit all give insight into the product offering itself that helps organizations refine them.  For product managers, web analytics are […]