In my last post, I pointed out the inevitability of entropy and energy consumption in media businesses.
Well, you can’t avoid, but you might want to know how I spot it when the entropy is costing money?
Change the measurement.
Measure Profit/Employee and Profit/User and Profit/Pageview. Those 2 metrics tell you everything you need to know. You’ll spot inefficiencies very quickly with that.
Really. try it.
~R
Another measurement…which in some ways takes into account the quality of the creative product in the eyes of the users…
Cost Per Voluntary Visit
Cost Per Voluntary Second/Minute/Hour spent on the site
The org should always be getting more efficient…cost relative to engagement should always be going down…except when you are “simplifying” by investing in change (new product build / expansion), when you will have a temporary period of a planned decrease in efficiency.