4 Metrics to Track the Performance of Your Industrial Consulting Partner

Authored by Novus Insights 07/06/2023

In today’s hyper-competitive business world, the importance of hiring reliable industry consulting companies can never be overemphasized. When working with an industrial consulting partner, it's important to track their industry research performance to ensure that you're getting the most value from your partnership. One way to measure the effectiveness of your retail management consulting partner is to evaluate certain specific metrics. In this blog post, we will explore the 4 metrics that you can use to track the performance of your b2b consulting agency. By monitoring and evaluating these metrics, you can track the impact of your partner's work, identify issues or gaps (if any), and optimize your partnership for success. Let’s get started.

Leads Generation Average

Evaluating the lead generation average metric is an essential aspect of the performance evaluation of your industrial consulting partner. The metric can be calculated by following the below-mentioned formula:

• Lead generation average = (Total number of leads generated) divided by (Set time period) (For example, if your partner generated 1000 leads in a month, their lead generation average would be 1000 divided by 1, which equals 1000.)

By tracking this metric, organizations can determine the effectiveness of their retail consulting partner’s lead generation strategies. For instance, if the trend shows that the lead generation average has dropped over time, that’s certainly a red flag that you should not ignore when assessing the performance of an industry research partner.

Customer Acquisition Percentage

Here is the formula to get the customer acquisition percentage metric:

• Customer Acquisition Percentage = (Number of new clients who have signed contracts) divided by (total number of project proposals sent to prospective clients within a set period of time)

This metric provides valuable insights into the effectiveness of your partner firm's sales and marketing strategies and its impact on your client acquisition process. The customer acquisition percentage indicates whether the firm has exceeded your expectations or lags behind. It is a key metric to consider, given that at the end of the day, it is the customer acquisition success that can drive your organization’s growth and profitability.

Clients Retention Rate

Measuring client retention rate is another crucial metric, as it provides insight into how successful you are at keeping your customers over time. To calculate the client retention rate, you can use the following formula:

Client Retention Rate = ((CE-CN)/CS)) X 100
Where:

• CE = Number of customers at the end of a period
• CN = Number of new customers acquired during that period
• CS = Number of customers at the start of that period

(For example, if you started the year with 1000 customers (CS), acquired 500 new customers during the year (CN), and ended the year with 1200 customers (CE), your client retention rate would be:
((1200-500)/1000) X 100 = 70%

This means that you have been able to retain 70% of your customers from the start to the end of the year.)

While it is an important metric to measure the success of your business, it also tells a story about the quality of leads that your consulting partner has helped you generate. For instance, if your partner helped you generate low quality leads, even if they convert, they might not result in long-term relationships with your firm. On the other hand, if your lead generation score is low but the retention rate is high, it indicates that your partner is doing a great job.

Customer Satisfaction

One of the main objectives of market research is to ensure that your customers are satisfied with your offerings. Many organizations hire industrial consulting agencies to assist them with ways to improve their customer satisfaction metric. Market research professionals should gather data and evaluate it to discover the ways an organization can improve its customer engagement drives. If your industry research partner isn’t helping you improve your customer satisfaction (CSAT) game, then you might have hired the wrong firm. One way to evaluate your CSAT metric is to calculate NPS (Net Promoter Score). To calculate the NPS for your business:

Create a customer survey that asks the following question: "How likely are you to recommend our product/service to a friend or colleague?" Ask respondents to rate the likelihood on a scale of 0-10, with 0 being "not at all likely" and 10 being "extremely likely."

Categorize your respondents into three groups:

• Promoters (respondents who gave a rating of 9-10)
• Passives (respondents who gave a rating of 7-8)
• Detractors (respondents who gave a rating of 0-6)

Calculate the percentage of respondents in each group by dividing the number of respondents in each group by the total number of respondents.

Calculate the NPS by subtracting the percentage of Detractors from the percentage of Promoters. The formula for NPS is:

• NPS = % Promoters - % Detractors
  For example, if you have 1000 respondents to your survey, and 400 are Promoters, 300 are Passives, and 300 are Detractors, you would calculate your NPS as follows:
• Percentage of Promoters = (400/1000) x 100 = 40%
• Percentage of Passives = (300/1000) x 100 = 30%
• Percentage of Detractors = (300/1000) x 100 = 30%

NPS = Percentage of Promoters - Percentage of Detractors

NPS = 40% - 30% = 10

Here, your NPS would be 10. A positive NPS indicates that more people are likely to recommend your business than not, while a negative NPS indicates the opposite.

Final Word

When it comes to conducting fruitful industry research campaigns, having one of the best retail consulting firms by your side can help you immensely. This is where Novus Insights can make a difference. We are a leading market research and industrial consulting company that can deliver actionable insights from research data using the most up-to-date market research techniques. To know more about our retail management consulting services, call +91 1244142292, +91 7428225350, or email contactus@novusinsights.com. You may also fill out our contact form and our market research consultants will reach out to you at the earliest.