Amazon, in the authors opinion, has cared less about profitability in the short run but has cared
Question:
Amazon, in the author’s opinion, has cared less about profitability in the short run but has cared about gaining market share. Arguably Amazon gains market share by taking care of the customer. Given the “Suggested 75 KPIs That Every Manager Needs to Know” from Exhibit 7-5, what would be a natural KPI for the customer aspect for Amazon? How do digital dashboards make KPIs easier to track?
Exhibit 7-5
1. Net Profit Financial Performance KPIS 2. Net Profit Margin 3. Gross Profit Margin 4. Operating Profit Margin 5. EBITDA 6. Revenue Growth Rate 7. Total Shareholder Return (TSR) 8. Economic Value Added (EVA) 9. Return on Investment (ROI) 10. Return on Capital Employed (ROCE) 11. Return on Assets (ROA) 12. Return on Equity (ROE) 13. Debt-to-Equity (D/E) Ratio 14. Cash Conversion Cycle (CCC) 15. Working Capital Ratio 16. Operating Expense Ratio (OER) 17. CAPEX to Sales Ratio 18. Price-to-Earnings Ratio (P/E Ratio) Customer KPIS 19. Net Promoter Score (NPS) 20. Customer Retention Rate 21. Customer Satisfaction Index 22. Customer Profitability Score 23. Customer Lifetime Value 24. Customer Turnover Rate 25. Customer Engagement 26. Customer Complaints Marketing KPIS 27. Market Growth Rate 28. Market Share 29. Brand Equity 30. Cost per Lead 31. Conversion Rate 32. Search Engine Rankings (by keyword) and Click-Through Rate 33. Page Views and Bounce Rate 34. Customer Online Engagement Level 35. Online Share of Voice (OSOV) 36. Social Networking Footprint 37. Klout Score Operational KPIS 38. Six Sigma Level 39. Capacity Utilization Rate (CUR) 40. Process Waste Level 41. Order Fulfilment Cycle Time 42. Delivery in Full, on Time (DIFOT) Rate 43. Inventory Shrinkage Rate (ISR) 44. Project Schedule Variance (PSV) 45. Project Cost Variance (PCV) 46. Earned Value (EV) Metric 47. Innovation Pipeline Strength (IPS)
Step by Step Answer:
Customer retention rate customer satisfac...View the full answer
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