What is it?
A model that measures your customer funnel, looking at the steps customers take between entering the market and purchasing. Providers are then assessed on how easy they make it for customers to progress through their funnel and what causes customers to drop out or stop.
Each business is then scored against their expected performance - based on market size, intent and competitiveness.
The score is out of 100 - the higher the better. It can then be used to calculate how many customers are lost each day because of a poorly optimised funnel.
Amazon was assessed using the model - it scored 91%. Which means that for nearly every customer Amazon should* get, most buy.
Why is it important?
With the Alders score, you are able to objectively benchmark your business against your competitors. Are you acquiring more or less customers than your competitors? Do you make it easier for customers to buy from you? What steps can you take to make it easier?
The Alders score can help identify inefficient activity and wasted marketing spend, it can show you where customers are being lost and it can help inform your growth marketing strategy.
How can you use it to grow your business?
By understanding where your funnel is inefficient or blocked, you can quickly identify the steps to accelerate your growth. You can then focus your efforts on specific areas of your business to grow quickly and efficiently.
*The scoring system takes account of market share, customer intent and the buying cycle for the individual good or service. This means that it accounts for the fact that nearly no business gets 100% market share. However, some businesses like Amazon in this example acquire nearly all the customers they would expect to get for the product being bought.