How Woolworths Uses Marketing Metrics.

Marketers use marketing metrics to measure and compare the marketing performance of a brand. These metrics are used to help guide marketing decisions and lets a marketer know how the brand is performing in the marketplace and against competitors. Metrics can also provide a solution on how to improve things in a company. “…every metric, whether it is used explicitly to influence behaviour, to evaluate future strategies, or simply to take stock, will affect actions and decisions” (Bendle, 2016, pp. 1.2). Marketers hold responsibility for all marketing financial decisions, which is why new opportunities and investments should be measured before a company proceeds and continually after by measuring performance.


Recently, Woolworths’ decided to switch back to their old creative agency M & C Saatchi after abandoning the agency for Droga5 in 2012. Unfortunately for Woolworths they have had a few hiccups in their business performance over the last few years. The fluctuation of share price and the opening of the catastrophic new business, Masters could explain why they have decided to revert back M & C Saatchi. Woolworths would have used a number of marketing metrics to arrive at the decision to change creative agencies and make new marketing decisions.

Financial Metrics.

Financial metrics includes return of investment (ROI), sales, net profit, revenue and more. All these types of metrics are considered fairly easy to measure as opposed to other metrics because they deal with tangible numbers. Financial metrics can be used to not only measure a company’s performance but also their competitors. Woolworths was able to measure their share price when they were with M & C Saatchi in 2001 and saw that its share price rose at a steady rate and by mid-2007 (refer to table 1.1) had reached $36 (Canning, 2016). However after 2008 their competitor, Coles, started to take the lead in the market share, causing Woolworths to panic and move agencies. At the time, this could have been seen as a smart move for Woolworths. They were measuring their competitor’s success and finding solutions to stay ahead of the game.

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Table 1.1 Source: Canning, S. (2016).

Behavioural Metrics.

Behavioural metrics are accountable for measuring the behaviour of customers that relate to the consumption of a brands product, such as; purchase frequency and quantity and customer lifetime value (CLV)(Gupta & Zeithaml, 2006). Loyalty programs are most efficient at measuring these factors and more. A spokesperson from Woolworths states, “Woolworths Rewards has allowed us to significantly increase our program of tailored offers, sent directly to individual shoppers, and this is delivering very encouraging results” (Canning, 2016). The company’s loyalty program would also be doing much more for Woolworths for example; measuring repeat purchases, frequency of visits to stores and brand preferences.

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Source: Knight, E. (2015)

Memory Metrics.

Memory metrics are used to measure things like brand awareness, attitude and customer satisfaction. Unfortunately, for Woolworths, there has been a “massive jump in brand awareness” (BrandTruth, 2012) for Coles in the past two years. This can be related to the annoyingly clever ‘Down Down’ ad campaign that has proven to benefit Coles tremendously. In response, Woolworths decided to relaunch their original ‘fresh food people’ campaign for their 25th anniversary to hopefully remind customers of their ‘fresh’ approach. However, it seemed to make “Woolworths look more stagnant and out of ‘fresh’ ideas” (BrandTruth, 2012).

Marketing metrics can be useful tools for company’s to measure a variety of different things to stay on top of the market. It is in a brands best interest to use these tools to their advantage to help grow their business and keep up with the competition. Although, Woolworths have had some issues in the past they are still one of the biggest supermarket chains in Australia. They successfully use marketing metrics to identify their strengths and weaknesses.

By Meher Chubb (MeherChubb08)



Bendle, Na 2016, Marketing Metrics : The Manager’s Guide To Measuring Marketing Performance, n.p.: Upper Saddle River, New Jersey : Pearson Education, [2016], DEAKIN UNIV LIBRARY’s Catalog, EBSCOhost, viewed 23 May 2016.

Canning, S. (2016). Tale of the ticker tape: How Woolworths’ recent performance follows its revolving agency issues – Mumbrella. [online] Mumbrella. Available at: [Accessed 21 May 2016].

Canning, S. (2016). Woolworths rejects claims Rewards card backlash could cost ‘hundreds of millions’ – Mumbrella. [online] Mumbrella. Available at: [Accessed 21 May 2016].

Gupta, S, & Zeithaml, V 2006, ‘Customer Metrics and Their Impact on Financial Performance’, Marketing Science, 25, 6, pp. 718-739, Business Source Complete, EBSCOhost, viewed 21 May 2016.

Knight, E. (2015). Survey terrible news for Woolies. [online] The Sydney Morning Herald. Available at:–plenty-of-room-for-improvement-20150625-ghxo9q.html [Accessed 21 May 2016].


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