Performance metrics need to be tracked diligently. This is never more the case than with networking activities. Many computer consultants know they should be tracking specific performance metrics but fail to have a system to actually do so.
A Profit and Loss type method for tracking performance metrics works quite nicely. By setting up a PNL statement you can use your defined performance metrics to track and measure the performance payback from each of the organizations you get involved with.
PNL and Networking Performance Metrics
Set up a separate statement for each organization you are involved with.
Track the expenses on one side:
Record the dates and meetings/events you attend
Record the time and money you spent on each event
Record how many new kinds of contacts you made
Record how many existing contacts were strengthened
Record how many people you met again for the second or subsequent time shook their hands, talked to briefly and reactivated that contact
Track the paybacks on the other side:
Record the date and the name of qualified leads that entered your prospect funnel
Record the name of the meeting or event that generated that contact
Record any service revenue that you ultimately received from that contact
Record service revenue you received as a direct referral from that contact
Once you have recorded your key performance metrics over a period of 3 - 6 months you can begin your analysis. You need to track these performance metrics for a sufficient amount of time because it takes a few months to complete a sales cycle. You should start to see some trends after 3 to 6 months.
Because of the sales cycle and the prospect’s stubbornness to change, sometimes you've got to wait a little more than 3-6 months to see definite trends. You are measuring key performance metrics to get an accurate picture of what is going on. Don't cut off your analysis too soon and risk dropping a good organization because you haven't used a long enough time horizon.
The Bottom Line on Performance Metrics.
Using performance metrics to measure the effectiveness of your networking activity is a critical business activity. Using a profit and loss type scenario is a quick and easy way to determine where you are getting paybacks and where you aren't. Use that information to make the changes required. Performance metrics are the best and truly objective way to gather this information and make these decisions.
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