Marketing Metrics End Term Project

50 Marketing Metrics for Apple Inc.

Submitted by – Section 1, Group 18

Raghav Goel- FT201059

Sirigiri Sai Srinija - FT201067

Saswat Kumar Dey- FT201073

Akash Dutta- FT202010

 Introduction:

“If you can measure it, you can improve it.” That is why marketing metrics is so important.
With the right marketing metrics, any company is in a better position to increase revenue.

For this assignment we have taken up a company which is both B2B and B2C. Apple is a B2B
brand as much as it is B2C because many of Apple's customers are buying a product for
personal use, and many other customers are buying products for their company, school or
other organization. Apple Inc. is involved in the design, manufacture and marketing of
mobile communication and media devices, personal computers and digital music players.
Products and services of Apple include iPhone, iPad, iPod, Apple TV, Mac, a collection of
technical software applications, iOS and Mac OS X operating systems, iCloud and a variety of
products, service and support offerings. It sells its products worldwide through its online
stores, its direct sales force, its retail stores and third-party wholesalers.

Metrics
1. Cost per Action (CPA): CPA is the average cost of conversion actions performed by
users. If Apple wants campaigns to be profitable, this cost should be lower than the
revenue generated from the action. CPA optimization is about how to get users who
will perform a target action at a lower target cost. Apple can use CPA to identify
which targets are performing efficiently. Cost per Action formula is:
CPA = Spend / Action

2. Return on Ad Spend (ROAS): ROAS is the number of dollars Apple make from an ad
campaign per each dollar spent on advertising. Revenue from ad campaigns should
exceed advertising costs. That is why healthy ROAS is over 100%. Conversely, ROAS
less than 100% is a warning signal that optimization is needed. It will help Apple to
find out if the targets are ROI-positive or not. The Return on Ad Spend formula is:
ROAS = Revenue / Ad Spend x 100%

3. Cost per Tap (CPT): CPT shows how much a tap costs to Apple. Higher the CPT,
sooner the ad budget fades, and at some point Apple might find it hard to stick to
the desired ROAS. On the other hand, low CPT decreases chances of hitting the
auction. As a result, Apple’s ad might fall short of impressions. Apple can use CPT to
identify targets which are either too expensive to compete for or have room in terms
of cost to give (and thus increase scale) Cost per Tap formula is:
СPT = Ad Spend / Taps

4. Conversion Rate (CR): CR is the perfect metric to estimate whether the funnel built
by Apple is poor or healthy. It shows the overall number of conversions generated
from taps to a particular in-app action within a period. Apple can use CR to identify
which targets can scale their conversion volume via CVR optimizations. Formula to
calculate Conversion Rate is:
CR = Conversions / Taps x 100%
5. Tap-Through Rate (TTR): TTR is the number of times an ad was tapped by customers
divided by the total impressions the ad received. If the ads are not tapped when they
are shown, impression share will begin to decline, no matter how much Apple is
willing to pay per tap. Apple can use TTR to identify targets which can scale their
impression share and taps via TTR optimizations. Formula to calculate Tap-Through
Rate is:
TTR=No. of tapping on ad/ Total Impressions

6. Impressions: Impressions tell how many total possible chances search Ads target had
to convert searchers into actual users, and thus which targets have the most
potential to scale acquisition efforts once optimized. Taken alone, however, it tells
very little about the value of efforts put in by Apple. To be a worthwhile indicator, it
must be bolstered with clear evidence of engagement and impact.

7. Cost of Customer Acquisition (COCA) – When determining the effectiveness of Paid

Search, Display, Social Media Campaigns etc. and calculating each campaign’s ROI,
COCA is vital. The data gleaned from these campaigns is one of the top factors that
dictates the direction of Apple’s future marketing strategies.

8. Average Session Duration (ASD): ASD is a general indicator of how much time
visitors spend on site entirely. This metric can help Apple to understand its site
performs from a user experience (UX) standpoint. It can give insights regarding ease
of navigation in website, worth of the content and how appealing website is to
customer.

9. Bounce Rate: The bounce rate is a measurement of how many people visited site,
took no action, and left immediately. A site with relevant, engaging content should
have a very low bounce rate. This metric can help reveal that visitors may be leaving
because of they did not immediately find what they were looking for or the page
takes too much time to load or they found relevant content but were not compelled
to click further

10. Exit Rate : Often confused with bounce rate, the exit rate tells how many visitors left
the site from a particular page. Any page with a high exit rate is likely to have
content in serious need of improvement. This metric is very specific and reveals a lot
about website design and user experience. Exit Rate tells exactly where the user lost
interest after spending some time exploring so it can be used to pin-point on the
web page and get it rectified.

11. Average Revenue Per User (ARPU): ARPU helps in figuring out how much revenue
Apple earns per new user acquired.

12. Fair share draw rate: The group feels that this should be an important metrics for
the company to evaluate because the market sees an entry of a new competitor on a
very regular basis. Also, it is a fact that technology changes every second and it’s a
dynamic business. Hence Apple will evaluate the change in the share after estimating
the sales of their products and brand after the entry of the competitors.
13. Brand equity metrics: This metrics is very essential to monitor the health of the
brand. It is used to assess the weaknesses of the brand. Apple being rated the most
valuable brand of the world means that the company needs to assess any potential
weakness which can hammer the brand to a position where they are not the market
leaders. They have to focus on Relevance, Esteem, Knowledge, Differentiation,
Innovation, Financial reports, Market share etc, to get a holistic view of the market
position and brand equity.

14. Conjoint utilities and consumer preferences: This metrics indicated the relative
value that the customer places on the attributes of which product offerings are
composed off. In a very competitive segment like mobile devices, the conjoint study
gives a snapshot of the current situation. It reveals what the market is willing to pay
for attributes of the product and that they need additionally as a value proposition.
Apple can exercise this metrics to innovate and sustain at the same time. They can
get a rough idea of the market share they can capture with the current offerings and
run simulations for trying out new permutations and combinations.

15. Segment utilities: It is a part of the conjoint analysis. It will basically help Apple
visualize to customer valuation of product attributes to help define market
segmentation.

16. Conjoint utilities and volume projections: This is one of the most powerful tools to
forecast the sale of the alternative product and a new product which a company
might launch.

17. Baseline sales: Apple as an organization runs various offers on credit cards and debit
cards. Also they have a buyback offer round the year. This metrics will help them
determine the sales value independent of the marketing efforts.

18. Incremental sales / promotion lift: This will help the brand evaluate the additional
revenue generated by conducting various marketing campaigns like running
discounts and teaching workshops for children.
Promotion lift = Incremental sales / Baseline Sales

19. Redemption rates: Apple has various offers such as students discount, Workshop
discounts, credit card discounts, partner channel discount. In order to quantify them,
they need this measure which can be calculated by dividing coupons redeemed or
coupons collected by coupons printed or made.

20. Costs for coupons and rebates: This metric will let the brand realize the budget of
the coupons redeemed.

21. Percentage sales with coupon: This will allow the brand to measure the dependence
on promotional lifts. This can be calculated as : Sales via coupons / Total sales

22. Per cent sales on deal: This will allow the brand to measure the dependence on
promotional lifts. This can be calculated as Sales via temporary discount / Total sales
23. Pass-through: This can be a very effective metrics for the brand as the brand does
not have any brand owned outlet in the country. They have third party dealers who
sell their products. So this metric will help the brand realize the amount of benefits
that are passed on to the customers through the distribution channels as it will be
directly reflective of the brand’s image. This can be a measure to very the
authenticity and honesty of the distribution partner. It can be calculated as follows:
Pass through: Promotional Discounts offered by the channel to customers /
Discounts offered by brand to the channel.

24. Price waterfall: This particular metric will be very essential for Apple as it will
communicate to them about the price charged by the customer and the margins of
various distributors and retailers along the way. It will indicate the price actually paid
for the product and the sequence of channel factors affecting that price. It can be
calculated as : Net Price per Unit / List Price per Unit

25. Gross rating points (GRPs): This metrics will help the brand to quantify the
impressions in terms of number of people in the audience for an advertisement
campaign.

26. Net reach: This metrics will facilitate the brand to understand the number of people
who are exposed to the advertisement played by the brand. The higher the number,
the better it is. It is usually considered the breadth of an advertisement’s spared
across a population.

27. Average frequency: This metrics will help the brand to understand the average
number of times that an individual is exposed to the advertisement, given that he or
she is indeed exposed to the Ad. This considers the frequency of people who have
been exposed to the advertisement under the study by the brand.

28. Effective frequency: This is a metric which help the brand identify the number of
times an advertisement must be exposed to an individual in a given period of time to
influence the buying behaviour of the individual. It lets the marketing team decide
the additional budget required to convert the customer. This also plays an important
role in calculation the customer acquisition cost.

29. Effective reach: This metrics actually is very important for Apple as it decides the
percentage of the audience that received an advertisement message with a
frequency equal or greater than the effective frequency. This ensures that the
adequate amount of marketing is being done to acquire a customer or at least an
attempt is being made to do so. Apple is powerful brand and they being the market
leaders need to focus on minimizing the customer acquisition cost.

30. Per Square foot revenue: This is a metrics which calculates the per square foot
revenue of the store. Apple has the highest revenue according to this metrics. This
indicated that the amount of revenue generated by the store and the store space is
being utilized in the most efficient and handsome manner.
31. Lead score: This essential metric is the primary tool for Apple to understand a lead’s
position in the sales cycle. Ideally, sales and marketing will work together to create a
consistent lead scoring system.

32. Lead channel origination rate: This metric helps to track which channels get the
most leads so that Apple can invest in what works best for them.

33. Conversion of inquiries to qualified leads: This metric will help Apple to identify how
well do they engage prospects at the beginning of the sales cycle. In most cases, a
healthy programme will qualify around 10 to 15 percent of its inquiries.

34. Conversion of qualified leads to opportunities: To measure the effectiveness of

sales and nurture efforts, Apple must understand the success of its interactions with
prospects from lead qualification to formal proposal.

35. Win Rate: Apple can calculate this number by multiplying close rate by fit rate. This
will help to understand how many qualified leads Apple needs to create a customer.
Sometimes, all that is needed is a simple measurement of how many deals are
closed and this metric helps to keep track of that.

36. Activity per salesperson: Salespeople engage in a wide range of activities to move a
prospect forward – calling, emailing, presenting and proposing. This metric can help
Apple track who does what, when, and how.

37. Month-over-month revenue by channel: With so many channels and platforms to

choose from, marketers often need to keep track of short-term performance when
trying something new. This metric will help Apple to see if latest efforts are working.

38. Revenue by keyword: SEO requires fine-tuning content to connect with prospects
who might be searching for particular terms. The revenue by keyword metric lets
Apple know if its SEO efforts are worth it.

39. Customer Lifetime value: How much is a given customer worth over the full extent
of their time with a company. This metric will help Apple to understand whether or
not it might be worthwhile to pursue similar opportunities.

40. Projected ROI: This is especially important when pushing for a budget increase to
support a major new campaign. Executive team will always want to know what
marketer hopes to gain from a larger investment in marketing efforts.

41. Net Promoter Score (NPS): NPS measures customers’ overall loyalty by correlating
factors like retention, satisfaction, and revenue growth. It’s generally considered the
best way to gain visibility into the strength and durability of customer relationships.
Hence increasing promoters and reducing detractors is very important.

42. Cost per new dollar of revenue: This is one of the most helpful ways to track how
sales and marketing contribute to the growth and health of the business.
43. Return on marketing investment (ROMI): As any marketer knows, too many
business leaders think of marketing as a cost centre. This metric can help marketers
to show, in very clear and direct terms, how its efforts contribute to profitability.

44. Cost per new inquiry: Apple should take the marketing budget and divide it by the
total number of inbound responses it receives. The result is a handy baseline
measure of Apple’s program’s efficiency.

45. Ratio of pipeline coverage to revenue: Apple should use opportunity close rate as a
guide, determine how much potential business must be in the pipeline to achieve
the yearly or monthly revenue goals.

46. Marketing qualified lead (MQL): MQL is a lead judged more likely to become a
customer compared to other leads based on lead intelligence. MQLs are those
people who have raised their hands (say by downloading an eBook or whitepaper)
and identified themselves as more deeply engaged, sales-ready contacts than usual
leads, but who have not yet become fully fledged opportunities (source).

47. Sales qualified lead (SQL): SQL is one that Apple’s sales team has accepted as worthy
of a direct sales follow-up (source). SQLs have been vetted much further and indicate
a prospect that is ready to make a decision.

48. Time from MQL to SQL: The time it takes for a marketing-qualified lead (MQL) to
become a sales-qualified lead (SQL) is, in part, a reflection of the level of
coordination between marketing and sales teams, so Apple should take care of it.

49. Downloads: A prospect who downloads content is always worth a follow-up from
sales. Apple should make sure that the download request form only requires the
absolute minimum amount of information that salespeople need to take the next
step – otherwise prospect might just slip away.

50. Retention rate: The Retention Rate shows the number of clients who keep using
Apple’s product over an extended time period and make repeat purchases. Formula
for calculating the Retention Rate :
Retention Rate = ((CE-CN)/CS)) X 100
CE = number of customers at the end of a certain time period (1 year, for example)
CN = number of new customers acquired during the same time period
CS = number of clients at the start of the time period