Setting Growth Goals and Marketing Metrics

by Karen Corrigan

Growth goals and objectives should be carefully quantified, especially in terms of achievable outcomes such as volume, revenue, market share and customer satisfaction or loyalty. Objectives should be informed by the business development and market opportunity assessments, analysis of the organization’s capacity and ability to add additional volume, and the strategic and financial goals of the health system’s strategic plan. 

Goals are usually addressed in three categories:

Strategic goals – strategic objectives and performance metrics often have a longer horizon point (3 years, for example) and are aimed at measure of competitiveness.  Examples of strategic goals/metrics include:

  • Market position (‘to be the leading provider of cardiovascular care in the greater metropolitan market’), which can be measured by market share growth
  • Brand position (‘to be the preferred brand of sports medicine by female athletes’), measured by consumer preference and loyalty
  • Service line reputation (‘to be recognized as a Top 100 hospital for neurology’), measured by third party recognitions and market share growth

Financial goals – financial objectives address revenue and profitability targets, as well as expectations for return on investments. Examples of financial goals/metrics include:

  • Net revenues (‘produce net revenues of $x million over x period of time’)
  • Margin (‘achieve a x% margin on operating revenues’); EBIDA
  • Payor mix (‘grow commercial volumes by x%’)
  • Cost reduction (‘reduce supply cost of orthopedic implants by x%’)

Marketing goals – marketing goals are quantitative translations of the strategic and financial objectives, expressed in marketing terms. Marketing goals can have both short term (one year) and longer term (three years) targets.  Examples include:

  • Overall volume growth
  • Growth in specific service line DRGs
  • Rate of growth vis a vis the market
  • Changes in market share and payor mix
  • Increases in volume or share by target market segment
  • Increases in consumer awareness and preference

Establishing and gaining agreement on strategic, financial and marketing goals – and the performance metrics for those goals – is a critical up-front objective in marketing planning.  Marketing strategy and investments must be tailored to achieve the goals, and measurement systems established to inform all involved as to the business success of major marketing activities and investments.

1 Comment

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One response to “Setting Growth Goals and Marketing Metrics

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