Key Success Metrics for Marketers

Like them or not – marketers need to understand and use metrics to convince others of their effectiveness.  The following is a list of what you most need to know.  Visit http://www.marketing.org.au for more information and to access an MXpress shortcourse on Marketing Metrics

General Marketing Metrics

Definition: Marketing metrics refer to metrics that cannot be specified in direct financial terms without extensive econometric calculations. General marketing metrics can be used for any type of marketing activity.

• Market Share (Units or Dollars)

• Awareness (Product or Brand)

• Satisfaction (Product or Brand)

• Likeability (Product or Brand)

• Preference (Product or Brand)

• Willingness to Recommend (Product or Brand)

• Loyalty (Product or Brand)

• Perceived Product Quality

• Consideration Set

• Total Customers

• Share of Customer Wallet

• Share of Voice

Specific to Marketing Activity Marketing Metrics

Definition: Specific to marketing activity marketing metrics are specialized for use with certain types of marketing activities. Some of these metrics will overlap.

Traditional Advertising:

• Impressions

• Reach

• Recall

Internet Advertising:

• Impressions

• Hits/Visits/Page Views

• Click-through Rate

Direct to Consumer:

• Reach

• Number of Responses by Campaign

• New Customer Retention Rate

Social Media:

• Hits/Visits/Page Views

• Number of Followers / Tags

• Volume of Coverage by Media

Sales Force:

• Reach

• Number of Responses by Campaign

• New Customer Retention Rate

Price Promotion:

• Impressions

• Reach

• Trial / Repeat Volume (or Ratio)

Pricing:

• Price Premium

• Reservation Price

• Relative Price

PR / Sponsorship:

• Volume of Coverage by Media

• Reach

• Recall

New Product Development:

• Belief in New Product Concept

• Attitude toward Product / Brand

• Expected Annual Growth Rate

Distribution:

• Out of Stock % / Availability

• Strength of Channel Relationships

• Product Category Volume (PCV)

General Financial Metrics

Definition: Financial metrics refer to metrics that specified in direct financial terms. General marketing metrics can be used for any type of marketing activity.

• Net Profit

• Return on Investment (ROI)

• Return on Sales (ROS)

• Return on Marketing Investment (ROMI)

• Net Present Value (NPV)

• Economic Value Added (EVA)

• Marketing Expenditures (% specifically on Brand Building Activities)

• Stock Prices / Stock Returns

• Target Volume (Units or Sales)

• Customer Segment Profitability

• Customer Lifetime Value (CLV)

Specific to Marketing Activity Financial Metrics

Definition: Specific to marketing activity financial metrics are specialized for use with certain types of marketing activities. Some of these metrics will overlap.

Traditional Advertising:

• Cost per Customer Acquired / Cost per Thousand Impressions (CPM)

• Lead Generation

• Internal Rate of Return (IRR)

Internet Advertising:

• Cost per Click

• Conversion Rate

• Internal Rate of Return (IRR)

Direct to Consumer:

• Cost per Customer Acquired

• Conversion Rate

• Lead Generation

Social Media:

• Lead Generation

• Cost per Exposure

• Total Costs

Sales Force:

• Sales Potential Forecast

• Sales Force Productivity

• Sales Funnel / Sales Pipeline

Price Promotion:

• Promotional Sales / Incremental Lift

• Redemption Rates (coupons, etc.)

• Internal Rate of Return (IRR)

Pricing:

• Unit Margin / Margin %

• Price Elasticity

• Optimal Price

PR / Sponsorship:

• Lead Generation

• Cost per Exposure

• Total Costs

New Product Development:

• Expected Margin %

• Level of Cannibalization / Cannibalization Rate

• Internal Rate of Return (IRR)

Distribution:

• Total Inventory / Total Distributors

• Channel Margins

• Sales per Store / Stock-keeping units (SKUS)

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