To understand what the marketing term ‘business drivers’ means it might help to look at what it is you are doing, in your job or as part of your company to help your business achieve their goals. Questions like;
- ‘What are you doing to impact your customers?’
- ‘What is it about my role that impacts the performance, and ultimately the profits of my organisation?’
- ‘Am I meeting the needs of my customer?’
- ‘What am I doing to maximise the profits of my company?’
The role you or business leaders and employees have in ensuring the aims of the company are met, i.e creating sales and profit, is what is called as a business driver. Simply, they are the requirements that describe the ‘wants’ of a company.
The reason why companies desire to identify what their business drivers are is because when they discover the people/processes that ‘drive’ the company towards their goal, they can then measure how successful they are at fulfilling these goals.
At evolve we look at the term ‘business drivers’ as explaining and identifying what resources are vital to the continued success of a company. Different organisations will have different elements that they would describe as ‘drivers’.
Some are within the control of the company such as sales and operational functions, but others like economic conditions or markets cannot be controlled, yet are still considered business drivers.
Different types of business will also identify drivers that may be opposite to another business even in their same field. Therefore, there are no sure uniform drivers and formula for all business.
Look at a business model and identify what their business drivers are. The simple example of a retail clothing company may help:
A retail company who has an online store and a high street store will have different elements of the company that will help fulfil their goals, and lead to a successful business. The potential drivers of this type of company may be identified as the following:
- New stock from latest fashions .i.e customers demands are met
- Retail staff that meet targets in sales
- Online stock delivered promptly
- Solid customer service
- Up to date online web marketing techniques such as website SEO, PPC and Inbound Marketing
Though not all immediately apparent these drivers and the people who’s role it is to carry them out can be measured and reviewed by business analysts to see if the organisation is meeting their targets. For more, see How to identify the business driver of my company?