The value of Marketing Metrics

The need to review the performance of marketing campaigns is essential to understanding its impact. It allows companies to answer questions like; Are our Sales and Profits on target? Is our new product being adopted new customers? Are we adequately covering the market?

Measurement in essence is to capture data to compare against; previous internal results i.e. YTD against previous year’s YTD, monitor against set annual budgets/project budgets, or benchmark against competitors, industry average etc.

The categories of Marketing Metrics include; Financial, Behavioural, Memory, Physical, Customer Profile and Marketing Activity.

Financial – This looks at profit contribution per brand, profit margins, and return on investment based on net marketing contribution as well as many other ratio and margin analysis.

At a more detailed level, especially for online companieRevenue per Users where data is more readily available and easier to capture via digital footprints as opposed to a traditional store, the big online corporates can calculate KPIs such as average revenue spend per site user.



Behavioural – This is an important metric to better understanding customer behaviour for how and when they are likely to purchase. For example, Uber knows that as a ‘Rider’, if you mobile is low on battery, you are more likely to accept a surge price. There metrics have also found that Riders are more likely to take a surge if it is stated as 2.1 surge as opposed to 2.0. Uber researchers draw to the conclusion that a round number of 2.0 appears to riders that Uber has just ‘slapped on a higher price tag just because it’s raining’. Whereas, when it is 2.1 times as much, consumers feel that there must be a complex algorithm behind it, so the ride must surely be worth 2.1 times as much.

Memory– Memory metric concerns how easily consumers can recall your brand. There is a casual relationship between customer satisfaction and repeat customers. As commented in Amazon’s annual report;

We work to earn repeat purchases by providing easy-to-use functionality, fast and reliable fulfillment, timely customer service, feature rich content, and a trusted transaction environment.

Amazon have done this by ensuring a positive customer experience on their website, including metrics to monitor site availability, download speeds and even an alarm system if revenues fall below a certain threshold of $10,000 per minute. 

No wonder Amazon have been a consistently high performer in customer satisfaction CSsurveys, above is taken from ForeSee’s E-Retail Satisfaction index.

Contrast Amazon’s performance to Telstra, and you will see customers complaining of regular outages in last few months, with consumers ranting on Twitter that they have been offline for over 4 days. This cannot be doing the Brand image and repeat customers any good. (Hatch 2016) telsta

Physical – This metric is key to understanding where consumers can buy your product. It is akin to ‘Place’ in the marketing mix. It does also draw parallels with customer satisfaction linked to service availability above – as illustrated by Amazon and Telstra. Consumers need ease of purchase otherwise they will likely buy a substitute product or a competitors.

The use of marketing metrics for evaluation of marketing performance can take many forms. Measurement from the customer perspective is just as important, if not even more so than the traditional metrics of simply looking at sales and profit margins.

Blogged by Thu Tran (username Trthu)



Chaffey, D 2014 Available at:  Accessed on 20 May 2016.

Hatch, P 2016 Available at: Accessed on 23 May 2016.

NPR – This is Your Brain on Uber Available at:  Accessed on 20 May 2016.


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