A Framework for Developing Marketing Metrics
1. Describe the general nature of performance.
The first step is to establish a general description of performance that is appropriate for the research context. Emphasis during this initial step is on considering a wide range of facets and influential factors.
2. Specify what exactly is being evaluated.
This step begins to refine and focus the scope of performance in order to identify any additional, subtle facets that should be incorporated into the corresponding measures.
In most evaluation it is advisable to start with more observable performance terms such as specific outcomes; e.g., sales and expenses. In addition, the relevant scope of performance, and the time period being examined should be set.
3. Establish the type of data required.
This step marks the transition from issues of definition to measurement issues. The specific types of measures (e.g., financial vs. non-monetary, perceptual vs. objective, raw vs. standardised) and the appropriate method (e.g., survey, internal audit, secondary data) for gathering the data are selected in this step. The form and type of data chosen is based largely on the focus and nature of the performance assessment exercise. Other considerations such as data availability and statistical analysis procedures can also influence the type of data gathered.
4. Generate items for a performance scale.
At this point, the specific items for the performance scale are formed.