MARKETING METRICS

SUMMARY

Marketers are supposed to set specific goals for each campaign and their marketing
tactic which will guide their efforts and will ultimately improve performance. It is
much necessary to find “Where the efforts are succeeding and where it needs to
be refined”.

The goals set should majorly satisfy two points, that is, they should be ‘consistent’
and should be ‘mutually inclusive’.

Profit can be a good starting point in setting an overall goal for a marketing
initiative. The metrics such as ROI, ROMI, and payback period are all associated
with profit. All these metrics are time biased and situation biased, so it is important
to use these metrics at the right time and at the right place.

Market share is also another commonly used overall metric, but it is generally
suggested not to use it as a primary metric, as it is not mandatory for the market
share to turn into profit completely.

Customer Lifetime Value has two sides that could be looked upon, ‘customer
retention rate’ and the ‘margin/customer’ when our business demands carrying
forward the customers along then this metric should be considered.

Net promoter score quickly measures customer loyalty by asking only one question
and rate the customers into ‘promoters’ ‘passively satisfied’ and ‘detractors’.
Customer satisfaction is another point similar to the net promoter score which
cannot be used as a primary metric but can be used to study the customer’s loyalty.

Once the overall metrics have been established, the first one to be considered
among the marketing mix elements supporting our overall strategy will be the
‘promotional metrics’, which deals with the Advertisements, Public relations, and
Sponsorships. Brand Awareness is one tactic which falls under this though it is not
a primary metric it helps to understand if our brand is being ‘Recalled and
Recognized’. So it is believed that awareness and positive intentions relate
positively. And Brand Preference is another metric that falls under this and it
should be measured after the customers are exposed to a particular marketing
tactic. And Brand Equity is the sum of brand awareness, brand preference and
purchase intention of the customer.

Share of Voice is just like market share but it does not deal with revenue and
instead deals with how much a company spends on advertisements in comparison
with its competitors.

And this increased depth in studying about the metrics resulted in changing the
emphasis on paying for exposure to paying for results. Customer acquisition
cost is the cost incurred to acquire one new customer through one particular
promotional tactic. But looking only at value to acquire customer neglects the
reality that some promotional tactics may attract higher value customers.

The next marketing mix element to be touched upon us the Pricing Metrics. As the
name says manufacturer suggested retail price(MSRP), is the price suggested by
the manufacturers , and Average unit retail price (AUR), is the actual retail price
that is fixed for that particular product, when MSRP and AUR are closer it can be
inferred that promotional and channel tactics were effective for that particular
product. Constant consideration of the revenue and margins throughout the
marketing planning process is the starting point for pricing.

Channel metrics deals with, how widely is the product made available? How
effective is the investment in inventory? Effectiveness of certain retail outlet?

And product metrics deals with the effectiveness of the product in the market, and
if the introduction of any new product will affect the sales of the already existing
product then that introduction should either be delayed or completely be stopped.
And this is called Cannibalization.

Keeping in mind the overall strategy that best suits the particular business model
and supporting that strategy with right metrics and tactics among the marketing
mix elements, lets our efforts succeed!!