Unit 1

INTRODUCTION
 What are Metrics
• A metric is a measuring system that quantifies a
trend, dynamic or characteristic. In virtually all
disciplines, practitioners use metrics to explain
phenomena, (Bisleri) diagnose causes (Eg: Causes and
effect, Netflix), share findings and project the results
of future events (Eg: Royal Dutch Shell).
• Throughout the worlds of science, business and
government, metrics encourage rigour and
objectivity.
• Metrics make it possible to compare observations
across regions and time periods. They facilitate
understanding and collaboration. (China and
Rural/Estate workers – Migration)
Characteristics of a good metric:

• Drives appropriate action.

• Meaningful to the customer. (End purpose
served)
• Simple, understandable, logical and
repeatable.
• Clearly defined. (Eg: QWL, WLB)
• Data that’s economical to collect/recover.
(WTC/Eg: Surveys)
• Shows how organizational goals and
objectives are being met. (Alignment of
outcomes)
 The Alignment of
Business Objectives
• To achieve "goal alignment" at your
organization, you must first clearly
communicate strategic business
objectives across your entire company. (Eg:
Annual Objectives, 2HP motor).

• Enabling and mandating that individuals assign

some goals to two or more people increases
engagement and shared accountability
throughout the organization.
Common obstacles to organizational
alignment
• Organizational culture resists performance
management efforts. (Reliance on Temporary
happenings)
• Departments don’t share information.
• Lack of vendor integration.
• Insufficient information (Rows and columns).
• Access to information.(Should be on cloud)
• Lack of accountability (Railways).
Eg: Apple
 4 alignment areas
• Division/departmental performance alignment
(basis of goals/contributing towards growth)
• Workforce performance alignment (based on
seniority/qualification)
• Financial performance alignment (EPS)
• Resource performance alignment (ROI)
 Aligning to Organizational
Business Objectives
• Define organizational goals
• Identify how each business unit contributes
toward reaching organizational goals
• Develop strategy to achieve goals within each
business unit
• Identify bottlenecks and improve
inter-connected processes among business
units. (Eg: BBD Day)
• Align employee performance to maximize
business unit support in reaching
organizational goals (Eg: BBMP Road Cleaning
tech )
• Ensure technology investments support
organizational goals (,Eg: BSIII IV)
• Optimize system performance utilize business
intelligence automate reporting capabilities.
(Eg: GJ 3Boxes)
• Develop performance measure that drive
decision making and progress toward
organizational goals
 Common pitfalls to avoid when
aligning performance to strategy
• Inflexibility
• Insufficient vertical alignment (Not a good
forward and backward set up).
• Insufficient horizontal alignment (Not in a
particular category eg: BPL).
Strategies and
Metrics
 Marketing Performance Metrics

Businesses are obsessed with financial results because they tell

what has happened. But rarely do businesses fully understand all
the reasons for their financial results.

Marketing performance metrics measure the factors that are

actually driving profits and helps in strategic implementation
in the market. (May be for eg: Online approach, Hyundai)
 Barriers to Getting Started Using
Marketing Metrics
❑ They are too complex and too difficult to use.
❑ They do not solve my business’s problems.
❑ There are too many; I don’t know where to
start.
❑ I do not have the data nor the budget to gather
the data.
❑ I do not have the time for this type of work.
Eg: Consulting Firms, SMEs – Cloud
Computing
Marketing Performance Scorecard
Sales Impact of Successful Strategy

What would be your action plan?

Successful Plan Implementation

Eg: Virtual Assistant

 The
potential
gap
between
metrics and
business
outcomes
 Gaps
• It is all too common for business owners to
judge how well they are marketing by
examining their outputs. However, you won’t
have a genuine understanding of your
effectiveness until you begin to observe your
outcomes. (eg: Employee turnover)

• So how does one ensure they are measuring

outcomes (the much more reliable area of
focus) and not outputs? (eg: Attrition)
 Discussion
• What is the message of this campaign?
• With the popularity of free analytics on platforms like Facebook
and WordPress, it’s tempting to obsessively measure your
outputs because that is what gets highlighted. Social media
measures success through likes, shares and follows. Email
marketing platforms report back your subscriber lists and
open rates. Website platforms tell about page visits and link
clicks.

• With this kind of data front and center, it’s no wonder business
owners are confused about how to determine their marketing
impact. The most obvious information provided is not really the
most important information. These metrics are simply
surface-level assessments that give you an idea of whether
people are responding to your content or not. Useful, but shallow
outputs won’t provide the in-depth knowledge you need to
strategically propel your business to the next level.
• Eg: 1.Youtube
Can you guess who this person is?
Your website and social media accounts are
simply outputs or avenues; they don’t
matter as much as the outcome:
 To Avoid gaps
• You can’t pick your data, but you must pick
your metrics. (Sales – ROI, On site
conversion)
• Beware of vanity metrics (Eg: Twitter
followers, Facebook followers)
• Organizations become their metrics. (Best
batsmen: Dravid? Sehwag?)
• Search for right metrics(Eg: Number of
downloads, RGV)
• Metrics are only valuable if you can manage
them.
Sports Equipment Donation campaign
- Reading
• How many views make a YouTube video a success?
How about 1.5 million? That’s how many views a
video our organization, DoSomething.org, posted in
2011 got.
• It featured some well-known YouTube celebrities,
who asked young people to donate their used sports
equipment to youth in need.
• It was twice as popular as any video
Dosomething.org had posted to date. Success! Then
came the data report: only eight viewers had signed
up to donate equipment, and zero actually donated.
 Results
• Zero donations. From 1.5 million views.
Suddenly, it was clear that for
DoSomething.org, views did not equal success.
In terms of donations, the video was a
complete failure.
• What happened?
• They were concerned with the wrong
metric and Process absence
 Data Vs Metrics
• A metric contains a single type of data, e.g.,
video views or equipment donations. A
successful organization can only measure so
many things well and what it measures ties to
its definition of success. For
DoSomething.org, that’s social change.
• In the case above, success meant donations,
not video views. As we learned, there is a
difference between numbers and numbers that
matter. This is what separates data from
metrics.
People, Planet and Profit
Reasons for failure of green marketing
• Not Being Transparent in Their Green Marketing
Efforts – Eg: Honda
• Making Green Marketing Claims That Don't
Reflect The Total Impact of The Product – HP
• Failing to Connect with Eco Friendly Consumers
(China and France)
• Using insider language and higher prices turned
off mass-market consumers. (Eg: Solar equipment)
 Relevance of Marketing Metrics in
People, Planet and Profit
• Use metrics to enhance outcome of green marketing
strategies.
• Work on nudging people to use green
products/practices other than conventional with the
help of metrics
• Stabilize the business position in the market making
good decisions with caution by using marketing
metrics
The importance of marketing metrics
• Cost to Generate Traffic
• Marketing spending metrics (CPI, reach, frequency,
share of voice).
• Visitor acquisition KPIs (Source of visitor, return
visitor, unique visitor)
• Site Effectiveness Measurements
• Conversion Metrics
• Buyer Metrics (Average order value, CLTV)
• Revenue (Multi channel and e-commerce marketers)
• Customer Loyalty & Profitability
• Profitability and ROI (Channel Margin, Sales Target,
Net Profit, ROS, ROI, NPV, ROMI)
Measuring Marketing Effectiveness.
• Marketing effectiveness is the measure of
how effective a given marketer's go
to market strategy is toward meeting the goal
of maximizing their spending to achieve
positive results in both the short- and
long-term. It is also related to marketing ROI
and return on marketing investment (ROMI).
You’re probably spending money on
areas that reap no real return
on investment.

$
$ $
$
$
$

$ $
$
$
$ $

Social . Digital . Marketing Analytics

Half the money you spend on
marketing is wasted. The
problem is, which half?
?
?

?
Social . Digital . Marketing Analytics ?
 If only that money can be better
allocated to other areas with proven
marketing effectiveness

X
The potential upsides are very X
handsome

Social . Digital . Marketing Analytics

Call Tracking System – How it
works
1. Number Placement
The system assigns a trackable
phone number to each of your marketing
channel eg Newspaper Ads, Facebook,
Google.

2. Inbound Call Data When a customer

dials the phone number, the system capture the
calls data and forwards the calls
seamlessly to your business phone.

3. Reports & Insights

Business owners can view their inbound
call data real time & derive call trends
through the dashboard.
Metrics that help measuring marketing
effectiveness
• Unique Visitors (Identifies new inlets)
• Page Views
• Search Engine Traffic (Channelized traffic)
• Bounce Rate
• Conversion Rate
• Inbound links (Which source to be valued)
 ARTICLE DISCUSSION
Marketing Metrics: Note for
Marketing Managers
What was the weakness of
marketing discipline for years?
Give an example for setting a goal with
multiple level targets
What are the side effects of having
too many aggressive goals?

Eg: Credit Card | High value customers

Mutually exclusive goals results in
______________
Market Share Metrics provides
glimpse of _______________
How Lego obsession with
market share caused
problems?
NPS has very limited relationship
with
________________________
•Awareness is better measured as
______________
List advantages and disadvantages of
brand preference
Share of Voice is beneficial during
_______________times
Customer Acquisition cost is actively
looked at by ________________
More Inventory turnover rate is
problematic why?
MSN saved ______from getting
cannibalized
How can use interpret percentage
sales of new products?
End of Unit 1