RELATIONSHIP

METRICS

PREPARED BY: GARIB ALESGEROV

 KEY
POINTS:
1) Does ”RM” has an impact of “RM” on revenue, cost,
capital employed and eventually profits of
organization?

2) How do we know it?

3) Does short-term profit is an indicator of success?

 PROFIT IMPACTS OF MARKET
STRATEGY
The goal of “PIMS” was quantifying and defining the effect of
advertising, quality, market share, sales volume and other marketing
strategies on profit.
 TYPES OF
METRICS:
1. Marketing Qualified Leads (MQL)
2. Sales Qualified Leads (SQL)
3. Brand awareness
4. Customer engagement
5. Marketing spend per customer
6. Return on marketing investment
7. Lifetime value of a customer (LTV)
8. Customer Acquisition Cost (CAC)
9. Retention Rate and Attrition Rate
10. CAC Recovery Tim
11. ROAS (Return On Advertising Spend)
12. CPA (Cost Per Action)
 RETURN ON RELATIONSHIP
(ROR)
ROR is the long-term net financial outcome
caused by the establishment and
maintenance of an organization’s network of
relationships.
 ROR
MEASUREMENTS:
1. Customer satisfaction, loyalty, value and ROR;

2. Duration, retention and defection;

3. The link between customer interaction and quality,

productivity and profitability;

4. Intellectual capital and the Balanced Scorecard;

5. Return on the non-measurable and an extension to

RON, return on networks.
 SATISFACTION, LOYALTY, VALUE AND
“ROR”

 An improvement in customer-perceived
quality will increase customer
satisfaction, loyalty and profitability.
CUSTOMER SATISFACTION:
DURATION, RETENTION AND
DEFECTION
 The duration of a relationship, how long the
customers remain customers;
 The retention rate, which is the percentage
of customers who remain after 1 year, 2
years, etc. ;
 The defection rate, which is the percentage
of customers who leave a supplier.
QUALITY, PRODUCTIVITY AND
PROFITS: