From a SMART target perspective, what is missing?

A large telecommunications company wants to increase their Average Revenue Per User per month by 5%, by end of year, to increase revenue in a highly competitive market.

From a SMART target perspective, what is missing?
A . T – The increase should be seen sooner
B . A – It is too easy of a target to attain
C . R – Since competition is high, focus should be on increasing customer base and not on ARPU
D . S – There is no mention of which product group/line the target pertains to

View Answer

Answer: D

Explanation:

A SMART target is one that is specific, measurable, achievable, relevant, and time-bound1. The target of increasing the Average Revenue Per User (ARPU) per month by 5%, by end of year, to increase revenue in a highly competitive market is missing the specificity criterion, as it does not mention which product group or line the target applies to. The target should be more specific and clear about the scope and context of the desired outcome, such as which segment, region, or service the target relates to23.

Reference: 1: Guide to Business Data Analytics, IIBA, 2020, p. 192: SMART Goals: How to Make Your Goals Achievable, MindTools, 2021, 13: How to Set SMART Marketing Goals, CoSchedule, 2021, 2.