Tuesday, February 19, 2008

Generating money in the bank

Do performance predictor create value for an organisation? Or are they simply another marketing cost to add to the budget?

I believe a strategically aligned and carefully considered batch of performance predictors drive revenue. The benefit of additional value creation far outweigh the cost - when implemented successfully.

All major shopping centres require tenants to upgrade the façade and fit-out of their shops every few years. Why? Obviously it makes the shopping centre seem more modern and appealing, but the tenants also gain a benefit … it actually results in an increase in sales that almost without exception, more than covers the costs of the upgrade.

The cost of implementing performance predictors should be considered negative revenue.

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