SBI™ stands for Situation-Behavior-Impact, and it is a powerful tool developed by the Center for Creative Leadership that can help us give feedback in a more objective and constructive manner. When we perceive someone's behavior negatively, it is easy to jump to conclusions and make assumptions about why they acted the way they did. This can make it difficult to provide feedback that is fair and helpful.

SBI™ stands for Situation-Behavior-Impact, and it is a powerful tool developed by the Center for Creative Leadership that can help us give feedback in a more objective and constructive manner. When we perceive someone's behavior negatively, it is easy to jump to conclusions and make assumptions about why they acted the way they did. This can make it difficult to provide feedback that is fair and helpful.

The first step in using the SBI™ tool is to describe the situation in which the behavior occurred. This involves providing specific details about the context in which the behavior took place. By focusing on the facts of the situation, we can avoid making subjective judgments or assumptions.

The next step is to describe the behavior itself. This should be a clear and concise description of what the person did or said. It is important to stick to objective observations and avoid using subjective language or interpretations.

Finally, we need to describe the impact of the behavior. This involves explaining how the behavior affected us or others. It is important to focus on the consequences of the behavior rather than making personal attacks or judgments.

By following the SBI™ model, we can provide feedback that is specific, objective, and focused on the impact of the behavior. This can help the recipient of the feedback understand the consequences of their actions and make changes to improve their performance.

In addition to using the SBI™ model for giving feedback, there are other key business metrics that every company should know. Two of these metrics are the Cost of Customer Acquisition (CAC) and Customer Lifetime Value (CLV).

The CAC is calculated by dividing the total costs spent on acquiring new customers (marketing expenses) by the number of new clients acquired in a specific time frame. This metric helps companies understand how much they are spending to acquire new customers and can help them evaluate the effectiveness of their marketing strategies.

On the other hand, the CLV is determined by multiplying the average value of a sale by the number of repeat transactions and the average retention time in months for a typical customer. This metric helps companies understand the long-term value of their customers and can help them identify profitable client segments.

Evaluating the CLV of different client segments can help companies prioritize their efforts on the most rewarding audience and let go of clients who are decreasing their net profit and difficult to convert. By understanding the CLV, companies can make more informed decisions about customer acquisition strategies and focus on acquiring customers that will bring in higher profits.

Calculating the CLV depends on the specifics of the product or service being offered. For example, if a company is selling on a monthly basis, the CLV calculation would take into account the average value of a sale, the number of repeat transactions, and the average retention time in months. If it is a big one-time transaction, the calculation would be different.

In conclusion, the SBI™ tool is a valuable resource for giving feedback in a more objective and constructive manner. By focusing on the situation, behavior, and impact, we can provide feedback that is specific and focused on the consequences of the behavior. In addition, understanding key business metrics such as the CAC and CLV can help companies make more informed decisions about customer acquisition strategies and prioritize their efforts on the most profitable client segments.

Actionable Advice:

• 1. Implement the SBI™ tool in your feedback process to provide more objective and constructive feedback to your employees or colleagues.

• 2. Calculate your company's CAC and CLV to gain insights into the effectiveness of your marketing strategies and the long-term value of your customers.

• 3. Evaluate the CLV of different client segments to identify the most profitable audience and prioritize your efforts on acquiring customers that will bring in higher profits.