In today’s excessively competitive market, it is important to supervise and evaluate the performance of a particular company, so as to have a comprehensive idea about the performance of the company, and to examine what are the factors that still require attention for improvement. In the words of Harrington, the Performance improvement expert, performance measurement is vital to the success of a company, as it will lead to gradual improvement and growth. Woolworth’s is a very eminent brand of grocery store chain, located in Australia, and it accounts for approximately 80% of the Australian market. For the sake of evaluation of the marketing condition and its future prospect, Woolworth’s has adopted the marketing metrics to provide the framework against which it can calculate the total sale, or the response of the customers to a newly introduced product, etc (Spiller etal. 2015).
Marketing metrics can be of various types, such as behavioral metrics, memory metrics, financial metrics, physical availability metrics, etc. (Mooradian etal. 2013). Financial metrics of a firm is determined by the profit contribution of a brand. Woolworth’s, calculates this by deducting its sales revenue from direct cost. Again, Customer Lifeline metrics are used to evaluate the net profit, the company can expect to achieve in future from its potential customers.
Recently, the brand manager of Woolworth’s, is found saying that the company has, so far, chiefly focused on the customer oriented metrics, evaluating their business performance solely based on customer’s Shares and Likes; but now Melanie Baker proposes to monitor its market performance, by calculating its net sales. (Lamest etal. 2014).
Woolworth’s, Baker says, has a predetermined target, as to how much net sale it expects at the end of a particular month or a financial period. It will take the help of a Waterfall graph to evaluate and understand, each day, what per cent of the goal is getting achieved. This will be done by having an X-axis, which represents each day available over a period, and a Y-axis that shows the target set for each day. This can actually help them to manage its activities, and work per day, keeping in mind the exact figure required to fulfill the demand of that particular day (Shafi etal. 2013).
The company is also using memory metrics with much concentration. It is not only focusing on offering best quality service to the customers, but also improving brand image by introducing greater amount of discount cards and coupons to the customers, without compromising with the quality. They are also offering round the clock service of grocery supply to its customers, unlike its competitors.
If the official website of Woolworth’s is offering any discount or attractive offer to draw the attention of the customers, it should be able to analyze how many consumers are attracted towards the offer, or rather how much prospect does the offer hold for collecting customers for the firm. The Call-in Action or CTA is another example of marketing metric which helps Woolworth’s to understand how many customers have visited the official business page and much precisely how many of them have clicked on the page’s CTA to view the specific offer. The behavioral metrics are used by Woolworth’s, as well to ensure that the employees, hired exhibit the right kind of attitude required for ensuring future success. Before selecting a franchisee or hiring an employee, it makes sure that their aptitude matches well with the required set of qualities and skills.
Bounce Rate metrics, that provides the firm quantitative information, as to how many have visited the page, and then left it by clicking on a different page. If the Bounce rate is lower than 4 %, it means that a firm is not able to offer productive service to the consumers (Fraser etal. 2013). Physical availability metrics are used by a company, to make sure that it can reach out to greater number of customers. Woolworth’s, provides grocery to its customers, as and when they need it. Further, it is located in different localities of Australia; even the company is planning to set up new outlets in the remotest corners of the nation, to ensure that their service can be offered to a wide range of customers.
It is not sufficient to work and invest towards attaining revenue at the end of a financial year; the firm should be able to calculate quantitatively how far it is growing and evolving, and to what extent its future prospects can meet its target (Marshall etal. 2014); Woolworth’s aims to achieve the same target.
Spiller, L. and Tuten, T., 2015. Integrating Metrics Across the Marketing Curriculum The Digital and Social Media Opportunity. Journal of Marketing Education, 37(2), pp.114-126.
Mooradian, T., Matzler, K. and Ring, L., 2013. Strategic Marketing: Pearson New International Edition. Pearson Higher Ed.
Lamest, M. and Brady, M., 2014, July. HOW DO MANAGERS USE MARKETING AND FINANCIAL METRICS IN THE CONTEXT OF MARKETING MIX DECISION MAKING? In GMC Session8 (pp. 1550-1561).
Fraser, J.A., 2013. Exploring marketing metrics used in innovative companies.
Marshall, K.P., Forrest, P.J. and McGorry, S., 2014. MARKETING METRICS WORKSHOP: ACME 2014. Patrick D. Fountain, p.239.
Shafi, S.I. and Madhavaiah, C., 2013. MEASURING MARKETING PERFORMANCE: A REVIEW OF METRICS. Asian Journal of Research in Marketing, 2(2), p.1.