Friday, 11 December 2015

Twelve Key Marketing Metrics (Part II)

7. Customer Satisfaction
Customer satisfaction (CSAT) is a very important metric to measure for a number of reasons. CSAT is a primary indicator of a consumer's future intentions and loyalty to a brand for repeat purchase. For many successful companies CSAT can also act as a point of differentiation in a crowded market place. High levels of CSAT also help to reduce customer churn, which is the turnover or loss of clients. It can also help to increase CLV by retaining profitable customers since they are often cheaper to maintain than acquire new ones.  Finally, good CSAT helps to reduce negative word of mouth, as customers who are unhappy are likely to tell others about their bad experiences.

8. Net Promoter Score
The net promoter score (NPS) is a metric which can be used to consider the loyalty and happiness of customers and how likely they are to recommend your company to others. Customers are surveyed and fall into three categories depending upon their NPS. Promoters are customers who consistently recommend your company and may include strong brand advocates. Passives are reasonably neutral and would neither recommend nor deter anyone from your company. Finally, detractors are individuals who would discourage people from buying from your company. The NPS is actually calculated by taking the percentage of people who promote your company and subtracting those who detract from it.


9. Share of Customers
Share of customers is also sometimes known as share of wallet and is the amount of a customer's total spend that a company captures through its business operations. By increasing the share of customer, organisations can boost revenue cheaper relative to efforts to increasing market share. The typical way to increase the share of customer is to offer new products or services to existing customers of the business. For example, Nike may capture a higher share of customers by bringing out new lines of trainers to increase its share of wallet.

10. Market Share
The market share metric is useful for marketers to better understand the overall size of a company in relation to the market as a whole and its competitors. Market share is the percentage of a market in total sales that is earned by a company over a specified period of time. It is a relatively simple calculation by taking the sales of the company over the period specified and dividing them by the total sales from the industry as a whole over the same period.

11. Bounce Rate
The bounce rate is an online metric used to analyse web traffic to a particular destination. It measures visitors who enter a website and then leave rather than continuing to click through to other areas. While this metric can be misleading, it can also give you vital information into the success of a campaign. Websites with a high bounce rate usually indicate that the website is not performing well in continuing the interest of visitors. However, Wikipedia pages would often have a high bounce rate as users may land on the page, find what they were looking for and then leave. Therefore, bounce rate should not be evaluated in isolation but can often be revealing.


12. Online Visitor Behaviour
Online visitor behaviour to a website can be analysed in a number of ways. For example, you can consider the number of users and visitors to a website by counting page views. Metrics can also be used to measure the length of time on a website and the number of users who return to that page. In converting behaviour to action, metrics such as click-through rate (CTR) can be used to measure the ratio of users who click-through to a particular page including the conversion of page views leading to a purchase.

Robert Brunning
Current student in the Master of Marketing program at the University of Sydney Business School

No comments:

Post a Comment