COMSATS University Islamabad

Virtual Campus

(MGT403) Entrepreneurship

1. Key success factors determine the relative success of market participants and keys to
unlocking the secrets of competing successfully. Highlight common types of Key
success factors for competing successfully in any market segment.

Key success factors (or KSF) are business strategies that are critical to a successful
relationship with your customers.

Key success factors are decided by the needs and preferences of your market and
customers, not by your business. However, consumers aren't going to tell you what
those KSF are. Discovering your key success factors requires researching your customers
to understand who they are, what they want from your company, and what prompts
them to make a purchase.

A business generally has three to five key success factors that it needs to focus on to
achieve its goals. Key success factors also may relate to areas of weakness that you must
overcome to create a stronger relationship with your customers.

Once you understand and begin using your key success factors, they become part of
your brand and business style.

Marketing by Using Key Success Factors

Your key success factors influence your marketing choices. When implemented correctly
they result in robust sales, a strong brand, and a loyal relationship with your customers.

Once you have used research and observation to determine your KSF, you can use them
to tailor the message you send through your marketing.

Example. A major food corporation uses market research to discover that their target
customers are health-conscious mothers between the ages of 25 and 45. Providing a
convenient location is one key success factor for reaching those customers.
To make this KSF part of its business and marketing strategy, the food corporation
positions its grocery stores near gyms, daycare centers, shopping centers, and other
areas that its target customers already frequent. The corporation then creates
advertising that highlights the convenience of shopping at its stores for healthy mothers
with busy schedules.

The Importance of Data Tracking for Key Success Factors

Just as market research is the best way to learn what your customers want, data
tracking is the best way to analyze how well you have identified your key success
factors.

Tracking how customers respond to your marketing initiatives will show you whether
you are creating strong relationships with your customers. If your marketing results in
strong sales, you've correctly identified and used your key success factors. If not, you
may need to return to the research and planning stage.

You may also discover that as your business grows and your customer base changes,
your key success factors change as well. Data tracking will help you identify trends over
time so that you can adjust your marketing and sales plans accordingly.

Finding Your Key Success Factors

Each business has different key success factors depending on its industry, location,
competitors, and target customers.

Example. Car buyers expect large yearly sales, so a key success factor for a successful car
dealership is the traditional 4th of July sale. This key success factor wouldn't be
appropriate for service-oriented businesses or those selling products with no margin for
discount.