- Matching marketing metrics to marketing goal

Kinds of metrics:

Evaluation/Operational Metrics

- Guide the marketing planning and implementation process

- Referred to as KPIs (key performance indicators)

SMART Metrics (metrics can become goals and should reflect the SMART criteria)

Strategic: driven by firm objectives

Measurable: measured by an objective source
Achievable: avoid stretch goals (reasonable)
Relevant: measure things that matter
Time-bound: important to have a time frame
Integrated: connected to lower and higher-level goals

- Promotion: reach (potential customers), frequency (how often are your ads being seen), gross
impressions (# of times customers see your promotion)
- Channels: (place) retail penetration, out of stocks/backorders, average sales calls (demand)
- Price: relative price and price consistency (compare to competitors)
- Product: time to market, product share return, return rate

Digital Metrics:

- Total site traffic

- Bounce rate: come and go to your site
- Impressions (is the page loaded)
- Page value
- Clicks/cost per click/click through rate
- Cost per acquisition
- Cost per view (more than 30 seconds)
- Customer lifetime value (repeat customers):
o Med Net’s was greater because even though they didn’t have a predicted pattern of
audiences like search engines, visitors would come when “in crisis” and they stayed
longer and explored the website. Also, they tended to buy more products when they
decided to purchase.

Customer Experience Metrics:

Related to the outputs of your evaluation metrics - what the customer experiences.

Measuring awareness (GRP - gross rating point): make sure customers are aware of your product.
Time to resolution: customer satisfaction.

# of retail clerks: average checkout time

 - Promotion: top of mind awareness, recognition, brand liking, recall
- Channels: time to answer, time to resolution, average wait time
- Price: perceived price, perceived value, coupon redemption
- Product: satisfaction ratings, repurchase, returns, complaints

Strategy Integrated Metrics:

A way of combining metrics to think of how they relate to your marketing strategy/think of customer
journey as they use the product

Current vs desired experience

Linking Evaluation Metrics To Value Proposition

- Measure what matters

- Let strategy drive metrics, and metrics drive tactics
- Make sure that what you are measuring is valuable
- Gross rating point
- Top of mind awareness - from the customer point of view

Expected value: probability that an outcome occurs times the value if the outcome occurs.
Mednet – EV (click): 0.6 (CTB) * 150 (Contribution per Sale): $9
MedNet has a higher contribution per sale, higher % to buy, and higher CTR
Newspaper: greater ROI, and expected to buy

Marvel vs. Mednet

Click to buy vs. Click through rate
Marvel: 2% / 3%
MedNet: 6% / 1.4%

Mednet:
17.2mm Impresions
CTR: 3%
516,000 Clicks
CTB Rate: 6%
Sales: 30,960 Sales
Contribution Per Sale: $150 (greater than that of Marvel)
Total Contribution: $4,644,000
Ad Spend: 1,720,000
Profit: 2,924,000
ROMI (Profit/Ad Spend): total contribution minus ad spend/ad spent: 1.70
For every dollar Windham spends, they bring in 1.70

Comparison to Marvel:
57mm Impressions
CTR: 1.4%
798,000 Clicks
CTB: 2%
Sales: 15,960
Contribution Per Sale: $45 (Maximizing to maximize revenue)
Total Contribution: $718,200
Ad Spend: 430,920
Profit: 287,280
ROMI: 0.67
A positive ROI: means you are making profit

- Mednet’s click-throughs are more valuable

Strategic: they measured their objectives and that is how they abandoned many solutions:
- Charging their consumer audience went against their goals.

Achievable:
- Mednet sold based on click throughs their revenue would decrease by 80% —> not profitable
- Lack of trust for pharmacies and western companies

Examples: the company has control over them

Showcased by how when the products weren’t available over the counter, they would ask their
physicians to prescribe them