Lecture Marketing metrics - Chapter 1+2: Overview of marketing metric, developing marketing metrics system presentation of content: What’s a metric, the need of measuring marketing performance,... and other content.
9/18/2015 • “If you can’t measure it, you can’t manage it” (Kaplan, Robert & David P Norton, 1996) Objectives • Marketing: Art vs science • Setting feasible marketing target • Quantify marketing performance • Evaluating marketing accomplishment • Comparing marketing effectiveness among competitors in the market 9/18/2015 Materials Contents • Chapter 1: Overview of marketing metrics • Chapter 2: Developing marketing metrics system • Chapter 3: Market & Sales forecast • Chapter 4: Non-financial metrics • Chapter 5: Financial metrics Overview of marketing metrics 9/18/2015 Contents • What’s a metric • The need of measuring marketing performance Marketer’s challenges • Empowered customers • Fractured media • Continuing growth • Extensive competition • Demand for effectiveness and accountability Metrics • A measure system that quantifies a trend, dynamic or characteristic 9/18/2015 Roles & functions • To assess past situations: ◦ Explain phenomena ◦ Diagnose causes ◦ Share findings • To forecast the future ◦ To project results of future events Benefits • Focus on the key performance criteria • Better vision • Better decisions • Raising marketing’s role, influence and stature in the company • Better buy in and support from other departments • Better performance Limitation and difficulty • Availability of data ◦ Permission, privacy ◦ Ability to access • Sources of data ◦ Bias • Accuracy ◦ Methodology to collect data 9/18/2015 Developing a marketing metrics system Contents • Data needed for developing marketing metrics system • Building process for measuring marketing activities Type of metrics • Activity-based metrics: track and assess marketing activities • Operations performance metrics: evaluate performance of marketing department • Outcome-based metrics: measure marketing efforts to defined objectives • Leading-indicator metrics: help company in making strategic decisions 9/18/2015 Needed data • Consumers ◦ Profile ◦ Behaviors • Internal & Competitors ◦ Marketing activities and performances • Environment ◦ Macro and micro environment Data sources • Channel partner data sharing • Marketing programs • Surveys • Internal data from different departments Ethical & legal issue in collecting data • Keep highest ethical and professional standards • Have privacy policy in collecting and using customer data 9/18/2015 System of metrics development • What to measure? • Where to measure? • When to measure? • How to measure? System of metrics development Leadingindicator metrics Business Objectives X Marketing Objectives X Operation performance metrics Outcomebased metrics Activitybased metrics X STP X Marketing Mix X X X Implementation X X X System of metrics development • Customers: acquisition, retention, value • Product: adoption, innovation, price and/or margin • Competitive positioning: market share, brand preference • Financial: budget, payback/ROI, customer equity 9/18/2015 Steps to develop relevant metrics Establish brand goals Establish campaign goals Determine KPIs (Key Performance Indicators) Determine supplementary metrics Metrics Dashboard 9/18/2015 ... Materials Contents • Chapter 1: Overview of marketing metrics • Chapter 2: Developing marketing metrics system • Chapter 3: Market & Sales forecast • Chapter 4: Non-financial metrics • Chapter 5: Financial... assess marketing activities • Operations performance metrics: evaluate performance of marketing department • Outcome-based metrics: measure marketing efforts to defined objectives • Leading-indicator... Developing a marketing metrics system Contents • Data needed for developing marketing metrics system • Building process for measuring marketing activities Type of metrics • Activity-based metrics: