It is absolutely vital, for a company’s growth, to know and measure certain parameters.
‘Marketing metrics’ are a set of measures which help marketers to quantify, compare, and interpret marketing performances’. A marketing manager needs a certain measurement to assess and guide the company’s marketing action. Marketing metrics provides such measurements which helps understand the performance of the brand/business and indirectly reveals diagnostics on further improvement.
Also, stakeholders need to see the performance; metrics does exactly that. It provides a measure, a value, which proves useful in management.
It also gives an insight into the behaviour of the market, which makes room for required changes in certain policies and methods.
Marketing metrics has certain aspects to itself.
Financial metrics provide numbers for profit contribution, profit margin, and return on investment. As the name suggests, it takes care of the monetary front, and has little to do directly with the services and product. It also gives a measure of the customer value, meaning profits earned due to a given customer, and the customer lifetime value, which predicts future profit of the same.
Behavioural metrics determines the direct behaviour of the market, in terms of number of units sold, or what proportion of the market is using your brand, the sales frequency etc. It gives a clearer view of the customers’ mind-set regarding your product. It also records remarks and complaints about a product. This also helps in introducing offers and discounts. Perhaps the most clear example of this is Flipkart’s big discount days, where the company provides lucrative discounts and offers on a large amount of products.
Memory metrics provides brand awareness and image. It also highlights customer satisfaction and attitude, and the customers’ intention to buy the product. That is why certain companies, like Flipkart, provide feedback forms, or online questionnaire, so that one gets to know the general idea and feedback about the brand/service. This sort of helps consumers express their views more directly to the management.
Physical availability metrics shows how easily accessible the brand is for the customers. It includes factors like the number of distribution points, hours of opening (if there is an entire shop committed to one particular brand), the geographical coverage of distribution points and delivery points etc. Physical metrics basically maps out the physical availability of the product/s so that there’s a rough idea on how easily accessible the product is, and how to further exploit the availability in the future.
Marketing activity metrics keeps a tab on all the marketing activities going on. This is to ensure that the marketing investment money isn’t being spent rashly, and that it provides maximum benefit in minimum expenditure. For example, to map the online activity, one needs certain numbers like page views, search engine traffic, conversation rate (the percentage of visitors who take some action), bounce rate (visitors who leave without any activity), inbound links etc. With all these numbers, the marketing plan can be evaluated.
Customer profile metrics is sort of a database of all the consumers; including information like name, age, gender etc. More detailed metrics includes their address, their shopping behaviour, who they buy from etc. This information helps marketers to identify the need of the consumers, and the reach of the brand.
These six major metrics provide the necessary information needed for a successful campaign. A step further would be: Marketing dashboards.
A marketing dashboard is a platform that collects all the critical metrics which helps evaluate the customer performance. A marketing dashboard is largely preferred by marketers and CEO’s, because of the features it provides. It eases decision making as all the numbers are taken into account, and one gets immediate feedback for different experiments and iterations.
Let’s take Flipkart into account. To ensure growth, the marketers need to know and understand certain parameters; parameters such as bounce rate, page views, new sessions, time on site/app etc. A dashboard can give a rough idea about how successful a new strategy is, or how to tackle negative feedback etc. It also shows the social media reach, which is of prime importance to any company.
Content Marketing Institute. (2012). 6 Metrics to Track When You Measure Marketing Effectiveness. [online] Available at: http://contentmarketinginstitute.com/2012/10/measuring-marketing-effectiveness-metrics/ [Accessed 23 May 2016].
Geckoboard.com. (2016). Marketing data dashboard | Geckoboard. [online] Available at: https://www.geckoboard.com/learn/marketing-data-dashboard/#.V0HBCvl97IU [Accessed 23 May 2016].
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