Quantitative and Qualitative Performance Measurements
Performance measurement are established metrics that managers apply for controlling planned tasks and financing amounts of resources for obtaining planned goals. The role of performance measurement and metrics is to set objectives, evaluate performance, and determine future courses of actions. The supply chain management aims at gaining advantages in cost over competition and customer service thus SCH establishes the approach of obtaining customer satisfaction through creation of value (Bititci & et.al.2002).
What are some of the quantitative and qualitative performance measurements used to help differentiate the customer experience?
To begin with the managers should establish a performance measurement system that will be across the organization policy and balances the metrics that are essential to the organization. The system should concentrate on both long term and short term results. For a company to engage fully to its customers and achieve long term growth, it must connect to its customers at an emotional level. Though customer measurement technologies should provide insights to companies on how to establish the emotional connection. With the combination of qualitative measurements and qualitative research analysis, organizations can define the customer touch points that are most emotional implication and those that create customer engagement (Maisel, 2001).
A company can use ethnographic research methods to study customers through observation. By focusing on the observed touchpoints, a company yields a marginal return on investment as compared to concentrating on the key engagement drivers. PMS measures in supply chain can classify qualitative measures into flexibility, trust, quality, innovativeness and visibility; and classify quantitative measures into cost and resource utilization. Some companies purchase customer experience platform in order to increase customer engagement leading to key customer outcomes and eventually the growth of business. A company can use its quantitative analytics to predict customer’s actions by identifying the items that forecast on customer behaviour across all firms and business-to-business (B2B) across business-to-customer (B2C) and companies (Neely, 2002).
A company should engage customers strongly by assuring them that they deliver on their promise to make customers to be proud to be buying from them. This is brought about by customer engagement and feelings of well-being. Advance qualitative analysis, for instance ethnographic research combines observations and interviews, and balances with predictive analytics to categorise the company and brand particular drivers that creates or reinforces the sense of well-being. Qualitative analytics and research helps B2B companies choose the key drivers that increases customer engagement when fulfilled. Ethnographic techniques help B2B clients comprehend why certain behaviours matter most to their customers. Such behaviours are such as enthusiastically listening to evidently understand customers’ needs and build rapport beyond the relationship (Simmons, 2000).
How can quantitative and qualitative performance measurements s be used to improve not only operational performance, but also financial performance?
The Shortages in financial performance measures led to innovations extending from non-financial indicators of intellectual capital and intangible assets to balanced scorecards of combined financial and non-financial measures. A balanced scorecard is a widely used business performance frame work, that constitutes of measures which gives top managers a fast but broad view of business (Van Aken, 2002). The balanced scored focuses on measuring the firm’s strategy and it is broken into four perspectives;
customer perspective is a perspective that focuses on a business plan of creating value and distinction from the customer’s perception
internal business perspective this focuses on The strategic concerns for several business processes to create customer and shareholder satisfaction.
innovation and learning perspective focuses on The priorities creating a climate which supports organizational change, improvement and growth.
financial perspective- This perspective focuses on the growth strategy, profitability and risks from the shareholder’s perception.
In addition, the scorecard joins many of the outwardly distinct elements of a company’s competitive agenda in a single management report Thus: improving quality, being customer oriented, managing for the long term, emphasizing teamwork, limiting response time, and reducing new product launch times, as well as the scoring card guards against sub optimization.
Bititci, Umit, Carrie, Allan & Turner, Trevor. (2002). Integrated performance measurement systems: Structure and dynamics, in Business Performance Measurement: Theory and Practice. Neely, Andrew, editor. Cambridge University Press.
Maisel, Lawrence S. (2001). Performance Measurement Practices: A Long Way from
Strategy Management. The Balanced Scorecard Report
Neely, Andy. (2002). Business Performance Measurement: Theory and Practice, Andy Neely
editor. Cambridge University Press
Simmons, Robert. (2000). Performance Measurement and Control Systems for Implementing Strategy. Prentice Hall.
Van Aken, Eileen M. & Coleman, Gary D. (2002, July/August). Building Better Measurement. Industrial Management. Vol. 44, No. 4 (28-33).