You want to use these Objectives in the order presented: Client Retention, Client Results, and Productivity. Put the objective and metric pair in everyone's job description where it's reasonable to do so. Then make a dashboard they can reference. These 3 objectives should be reviewed in one way or another, monthly (and
ideally weekly). Employees have to know that the only way to be successful in the agency is to make the client successful and be productive overall.
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Objective: Client Retention
- Metric: Client Retention
- Formula: = client revenue at end date/client revenue at starting date
- If new clients are added during the measurement period, they are excluded
- Target:
- Monthly: Target > 97.5% (For example if you have 40 clients you lose 1 per month. It also means you are retaining clients for 40 months on average)
- Quarterly: Target > 92.5%
- Yearly: Target > 70%
- Reporting: monthly, quarterly, yearly
- Grouping: by employee, by team, by company
- KPI: Net promoter score Note: If you get a low response rate, that is a red flag
- Formula: = % of Promoters – % of Detractors
- Promoters / total respondents
- Detractors / total respondents
- Target > 45%
- Reporting: monthly, quarterly, yearly
- Grouping: by employee, by team, by company
Objective: Client Results
- Metric: Client success Metric (This could be ROI, ROAS, CAD or Cost per Lead for your client)
- Formula: = Metric/KPI dependent
- Target = 80% of clients above benchmark best practice
- Reporting: weekly, monthly, quarterly, yearly
- Grouping: by employee, by team, by company
- KPI: % vs industry benchmark
- Formula: = Performance # obtained / Performance # best practice (top 10%)
- This can be the same as above. But this needs to be measured weekly. If the key client metric cannot be measured weekly, pick something that is a predictor of that. Hold a weekly meeting to go over this internally and ask team members how they are going to get it above target.
- Target = 80% of clients above industry best practice
- Reporting: weekly, monthly, quarterly, yearly
- Grouping: by employee, by team, by company