1.6 Marketing Metrics Survey
Why Do a Survey of Which Metrics Are Most Useful?
From the beginning of our work on this book, we have fielded requests from colleagues, editors, and others to provide a short list of the "key" or "top ten" marketing metrics. The intuition behind this request is that readers (managers and students) ought to be able to focus their attention on the "most important" metrics. Until now we have resisted that request.
Our reasons for not providing the smaller, more concentrated list of "really important" metrics are as follows. First, we believe that any ranking of marketing metrics from most to least useful will depend on the type of business under consideration. For example, marketers of business-to-business products and services that go to market through a direct sales force don't need metrics that measure retail availability or dealer productivity.
The second reason we believe that different businesses will have different rankings is that metrics tend to come in matched sets. For example, if customer lifetime value is important to your business (let's say, financial services), then you are likely to value measures of retention and acquisition costs as well. The same notion applies to retail, media, sales force, and Web traffic metrics. If some of these are important to you, others in the same general categories are likely to be rated as useful, too.
Third, businesses don't always have access (at a reasonable cost) to the metrics they would like to have. Inevitably, some of the rankings presented will reflect the cost of obtaining the data that underlie the particular metrics.
Fourth, some metrics might be ranked lower, but ultimately prove to be useful, after managers fully understand the pros and cons of a particular metric. For example, many believe that Economic Value Added (EVA) is the "gold standard" of profitability metrics, but it ranks far below other financial performance measures such as ROI. We believe one reason for the low ranking of EVA is that this metric is less applicable at the "operating level" than for overall corporate performance. The other reason is that the measure is relatively new, and many managers don't understand it as well. Customer Lifetime Value is another metric that is gaining acceptance, but is still unfamiliar to many managers. If all these metrics were well understood, there would be no need for a book of this type.
In summary, while we believe the rankings resulting from our survey can be useful, we ask readers to keep the above points in mind. We report in Tables 1.2 (page 13) and 1.3 (page 21) the overall ranking of the usefulness of various metrics as well as the different rankings for different types of businesses and different categories of metrics. Although no business is likely to be exactly like yours, we thought readers might find it useful to see what other marketers thought which metrics were most useful in monitoring and managing their businesses. For a look at the complete survey, see Appendix A.
Table 1.2. Survey of Senior Marketing Managers on the Perceived Usefulness of Various Marketing Metrics (n = 194)
All Who Responded to Question |
Customer Relationship |
What Does Your Business Sell? |
Who Are Your Customers? |
||||||||||
Group |
Contract |
Frequent Purchase |
Infrequent Purchase |
Products |
Services |
Mixed |
End Consumers |
Business |
Mixed |
||||
# of People in Group |
194 |
65 |
69 |
41 |
105 |
36 |
31 |
44 |
85 |
48 |
|||
Metric |
Question Number |
Chapter in Book |
% Saying Very Useful |
Rank |
Rank |
Rank |
Rank |
Rank |
Rank |
Rank |
Rank |
Rank |
Rank |
Net Profit |
Q8.10#1 |
10 |
91% |
1 |
1 |
1 |
1 |
1 |
1 |
1 |
1 |
1 |
1 |
Margin % |
Q8.3#2 |
3 |
78% |
2 |
10 |
2 |
3 |
2 |
6 |
2 |
2 |
3 |
6 |
Return on Investment |
Q8.10#3 |
10 |
77% |
3 |
4 |
5 |
2 |
3 |
5 |
3 |
3 |
2 |
8 |
Customer Satisfaction |
Q8.2#12 |
2 |
71% |
4 |
2 |
17 |
11 |
13 |
3 |
5 |
19 |
6 |
4 |
Target Revenues |
Q8.4#2 |
3 |
71% |
5 |
8 |
12 |
5 |
12 |
8 |
3 |
13 |
7 |
6 |
Sales Total |
Q8.6#3 |
6 |
70% |
6 |
7 |
10 |
8 |
10 |
8 |
8 |
16 |
3 |
12 |
Target Volumes |
Q8.4#1 |
3 |
70% |
7 |
5 |
6 |
11 |
8 |
13 |
10 |
8 |
7 |
10 |
Return on Sales |
Q8.10#2 |
10 |
69% |
8 |
12 |
12 |
3 |
9 |
17 |
8 |
4 |
17 |
2 |
Loyalty |
Q8.2#8 |
2 |
69% |
9 |
70 |
71 |
98 |
4 |
11 |
17 |
13 |
5 |
16 |
Annual Growth % |
Q8.4#7 |
4 |
69% |
10 |
13 |
3 |
11 |
7 |
11 |
15 |
8 |
10 |
10 |
Dollar Market Share |
Q8.1#1 |
2 |
67% |
11 |
13 |
7 |
7 |
5 |
13 |
21 |
8 |
11 |
13 |
Customers |
Q8.5#1 |
5 |
67% |
12 |
5 |
16 |
11 |
19 |
4 |
5 |
26 |
13 |
3 |
Unit Margin |
Q8.3#1 |
3 |
65% |
13 |
17 |
9 |
5 |
11 |
21 |
10 |
13 |
12 |
13 |
Retention Rate |
Q8.5#3 |
5 |
63% |
14 |
3 |
26 |
26 |
28 |
2 |
5 |
76 |
9 |
5 |
Sales Potential Forecast |
Q8.6#2 |
6 |
62% |
15 |
11 |
18 |
11 |
17 |
18 |
10 |
23 |
14 |
18 |
Unit Market Share |
Q8.1#2 |
2 |
61% |
16 |
23 |
4 |
16 |
5 |
54 |
30 |
8 |
18 |
17 |
Brand Awareness |
Q8.2#1 |
2 |
61% |
17 |
23 |
7 |
16 |
14 |
33 |
10 |
4 |
25 |
9 |
Variable and Fixed Costs |
Q8.3#6 |
3 |
60% |
18 |
15 |
11 |
32 |
15 |
8 |
30 |
19 |
21 |
13 |
Willingness to Recommend |
Q8.2#10 |
2 |
57% |
19 |
9 |
32 |
26 |
30 |
6 |
19 |
36 |
16 |
29 |
Volume Projections |
Q8.4#6 |
4 |
56% |
20 |
23 |
14 |
21 |
16 |
31 |
24 |
45 |
15 |
27 |
Sales Force Effective |
Q8.6#4 |
6 |
54% |
21 |
21 |
22 |
21 |
25 |
31 |
15 |
42 |
23 |
18 |
Price Premium |
Q8.8#1 |
7 |
54% |
22 |
28 |
27 |
8 |
23 |
33 |
17 |
56 |
19 |
25 |
Marketing Spending |
Q8.3#7 |
3 |
52% |
23 |
51 |
15 |
16 |
18 |
67 |
21 |
6 |
46 |
21 |
Average Price per Unit |
Q8.3#4 |
3 |
51% |
24 |
23 |
23 |
32 |
21 |
33 |
38 |
27 |
26 |
25 |
Penetration |
Q8.4#5 |
4 |
50% |
25 |
39 |
19 |
21 |
22 |
54 |
24 |
39 |
24 |
32 |
Top of Mind |
Q8.2#2 |
2 |
50% |
26 |
33 |
25 |
26 |
30 |
33 |
30 |
39 |
27 |
21 |
Compensation |
Q8.6#5 |
6 |
49% |
27 |
17 |
30 |
52 |
32 |
18 |
46 |
42 |
20 |
58 |
Return on Marketing Investment (ROMI) |
Q8.10#8 |
10 |
49% |
27 |
47 |
32 |
8 |
26 |
45 |
24 |
19 |
39 |
24 |
Consumer Beliefs |
Q8.2#5 |
2 |
48% |
29 |
33 |
35 |
21 |
47 |
21 |
10 |
30 |
29 |
36 |
Contribution Margin % |
Q8.3#9 |
3 |
47% |
30 |
56 |
21 |
21 |
29 |
46 |
24 |
45 |
32 |
21 |
Net Present Value |
Q8.10#6 |
10 |
46% |
31 |
31 |
37 |
26 |
39 |
27 |
20 |
39 |
41 |
20 |
Market Penetration |
Q8.1#6 |
2 |
45% |
32 |
17 |
41 |
58 |
38 |
41 |
38 |
45 |
35 |
33 |
Sales Funnel, Sales Pipeline |
Q8.6#7 |
6 |
44% |
33 |
17 |
60 |
32 |
54 |
21 |
21 |
74 |
21 |
58 |
Relative Market Share |
Q8.1#3 |
2 |
44% |
34 |
36 |
38 |
40 |
32 |
33 |
65 |
58 |
41 |
27 |
Purchase Habits |
Q8.2#7 |
2 |
43% |
35 |
39 |
35 |
43 |
27 |
41 |
80 |
30 |
29 |
69 |
Inventories |
Q8.7#7 |
6 |
43% |
36 |
62 |
20 |
48 |
20 |
109 |
59 |
24 |
45 |
46 |
Likeability |
Q8.2#9 |
2 |
43% |
37 |
28 |
54 |
38 |
47 |
21 |
46 |
45 |
37 |
39 |
Effective Reach |
Q8.9#6 |
9 |
42% |
38 |
48 |
40 |
32 |
37 |
46 |
44 |
7 |
61 |
46 |
Economic Profit (EVA) |
Q8.10#4 |
10 |
41% |
39 |
31 |
63 |
26 |
50 |
27 |
30 |
71 |
36 |
38 |
Impressions |
Q8.9#1 |
9 |
41% |
40 |
36 |
61 |
26 |
50 |
41 |
24 |
19 |
64 |
29 |
Customer Profit |
Q8.5#4 |
5 |
41% |
41 |
16 |
69 |
52 |
59 |
18 |
54 |
73 |
28 |
46 |
Optimal Price |
Q8.8#5 |
7 |
41% |
42 |
39 |
47 |
36 |
36 |
46 |
46 |
45 |
49 |
36 |
Payback |
Q8.10#5 |
10 |
41% |
42 |
51 |
51 |
20 |
54 |
27 |
43 |
67 |
34 |
44 |
Incremental Sales or Promotional Lift |
Q8.8#8 |
8 |
41% |
44 |
66 |
24 |
52 |
24 |
96 |
65 |
24 |
50 |
51 |
Consumer Knowledge |
Q8.2#4 |
2 |
40% |
45 |
36 |
57 |
43 |
64 |
21 |
30 |
58 |
37 |
51 |
Contribution per Unit |
Q8.3#8 |
3 |
40% |
46 |
71 |
29 |
48 |
39 |
62 |
46 |
63 |
54 |
29 |
Break-Even Sales |
Q8.3#10 |
3 |
40% |
46 |
51 |
39 |
43 |
43 |
40 |
59 |
58 |
41 |
46 |
Customer Lifetime Value |
Q8.5#5 |
5 |
39% |
48 |
23 |
77 |
40 |
69 |
21 |
30 |
76 |
46 |
33 |
Price Elasticity |
Q8.8#4 |
7 |
39% |
48 |
71 |
31 |
38 |
35 |
72 |
54 |
34 |
56 |
39 |
Purchase Intentions |
Q8.2#6 |
2 |
39% |
50 |
54 |
67 |
19 |
62 |
41 |
30 |
45 |
32 |
79 |
Growth CAGR |
Q8.4#8 |
4 |
38% |
51 |
45 |
32 |
74 |
41 |
54 |
72 |
83 |
31 |
45 |
Internal Rate of Return |
Q8.10#7 |
10 |
38% |
52 |
44 |
63 |
36 |
66 |
27 |
29 |
71 |
53 |
35 |
Effective Frequency |
Q8.9#7 |
9 |
37% |
53 |
56 |
52 |
43 |
45 |
67 |
44 |
12 |
74 |
46 |
Visitors |
Q8.9#15 |
9 |
37% |
54 |
39 |
58 |
58 |
60 |
46 |
38 |
53 |
51 |
62 |
Average Acquisition Cost |
Q8.5#7 |
5 |
36% |
55 |
21 |
95 |
43 |
77 |
13 |
38 |
83 |
41 |
43 |
Share of Voice |
Q8.9#8 |
9 |
36% |
55 |
66 |
43 |
52 |
45 |
62 |
64 |
33 |
72 |
39 |
Visits |
Q8.9#14 |
9 |
36% |
57 |
39 |
58 |
66 |
61 |
46 |
38 |
53 |
55 |
51 |
Workload |
Q8.6#1 |
6 |
36% |
58 |
50 |
48 |
66 |
53 |
54 |
59 |
79 |
40 |
58 |
Repeat Volume |
Q8.4#4 |
4 |
36% |
59 |
56 |
46 |
58 |
50 |
54 |
65 |
64 |
52 |
58 |
Clickthrough Rate |
Q8.9#10 |
9 |
35% |
60 |
33 |
61 |
77 |
63 |
33 |
54 |
29 |
67 |
51 |
Baseline Sales |
Q8.8#7 |
8 |
34% |
61 |
71 |
42 |
56 |
42 |
72 |
80 |
45 |
56 |
69 |
Total Distribution |
Q8.7#4 |
6 |
34% |
62 |
84 |
43 |
48 |
44 |
96 |
59 |
28 |
66 |
69 |
Net Reach |
Q8.9#4 |
9 |
34% |
62 |
62 |
48 |
66 |
58 |
72 |
51 |
37 |
62 |
62 |
Brand Penetration |
Q8.1#7 |
2 |
34% |
64 |
62 |
54 |
62 |
47 |
62 |
75 |
30 |
69 |
62 |
Out of Stock % |
Q8.7#6 |
6 |
33% |
65 |
86 |
27 |
88 |
34 |
109 |
86 |
18 |
64 |
85 |
Average Retention Cost |
Q8.5#8 |
5 |
33% |
66 |
30 |
98 |
40 |
82 |
13 |
51 |
91 |
48 |
51 |
Product Category Volume |
Q8.7#3 |
6 |
33% |
67 |
84 |
45 |
57 |
57 |
92 |
58 |
62 |
62 |
51 |
Cost per Customer Acquired |
Q8.9#13 |
9 |
32% |
68 |
48 |
72 |
66 |
70 |
54 |
51 |
74 |
60 |
51 |
Average Frequency |
Q8.9#5 |
9 |
31% |
69 |
76 |
48 |
71 |
54 |
83 |
75 |
16 |
77 |
86 |
Channel Margin |
Q8.3#3 |
3 |
30% |
70 |
66 |
80 |
48 |
70 |
83 |
37 |
67 |
82 |
39 |
Direct Product Profitability |
Q8.7#9 |
6 |
30% |
71 |
76 |
56 |
62 |
67 |
72 |
54 |
66 |
69 |
62 |
Recency |
Q8.5#2 |
5 |
29% |
72 |
56 |
74 |
71 |
75 |
33 |
80 |
94 |
59 |
62 |
Cost per Thousand Impression |
Q8.9#3 |
9 |
28% |
73 |
62 |
81 |
62 |
70 |
62 |
75 |
38 |
83 |
75 |
Pageview |
Q8.9#9 |
9 |
28% |
74 |
45 |
84 |
88 |
87 |
54 |
46 |
56 |
83 |
69 |
Cost per Click |
Q8.9#11 |
9 |
27% |
75 |
56 |
86 |
77 |
79 |
46 |
65 |
53 |
88 |
75 |
Brand Equity Metrics |
Q8.4#10 |
4 |
26% |
76 |
76 |
76 |
77 |
68 |
72 |
89 |
58 |
90 |
74 |
Markdowns |
Q8.7#8 |
6 |
26% |
77 |
96 |
52 |
84 |
65 |
106 |
80 |
34 |
90 |
86 |
Cannibalization Rate |
Q8.4#9 |
4 |
24% |
78 |
88 |
65 |
95 |
74 |
83 |
97 |
78 |
76 |
91 |
Abandonment Rate |
Q8.9#16 |
9 |
24% |
79 |
56 |
90 |
95 |
90 |
62 |
71 |
81 |
87 |
68 |
Ad Awareness |
Q8.2#3 |
2 |
23% |
80 |
76 |
88 |
77 |
78 |
72 |
80 |
64 |
104 |
75 |
Cost per Order |
Q8.9#12 |
9 |
23% |
81 |
71 |
91 |
74 |
90 |
67 |
65 |
95 |
73 |
75 |
Gross Rating Points |
Q8.9#2 |
9 |
23% |
82 |
88 |
91 |
58 |
84 |
67 |
80 |
42 |
99 |
92 |
Break-Even Number of Employees |
Q8.6#6 |
6 |
23% |
83 |
66 |
96 |
71 |
100 |
46 |
59 |
85 |
69 |
96 |
Hierarchy of Effects |
Q8.1#11 |
2 |
23% |
84 |
81 |
83 |
84 |
80 |
72 |
86 |
92 |
83 |
69 |
Numeric Distribution % |
Q8.7#1 |
6 |
22% |
85 |
108 |
75 |
62 |
73 |
106 |
103 |
69 |
89 |
97 |
All Commodity Volume |
Q8.7#2 |
6 |
22% |
85 |
96 |
67 |
93 |
75 |
83 |
89 |
69 |
78 |
104 |
Penetration Share |
Q8.1#8 |
2 |
22% |
87 |
76 |
93 |
74 |
84 |
72 |
75 |
95 |
75 |
79 |
Brand Development Index |
Q8.1#4 |
2 |
21% |
88 |
91 |
79 |
94 |
89 |
83 |
75 |
80 |
94 |
79 |
Prospect Lifetime Value |
Q8.5#6 |
5 |
21% |
89 |
81 |
106 |
66 |
95 |
46 |
104 |
98 |
67 |
97 |
Percentage Sales on Deal |
Q8.8#12 |
8 |
21% |
89 |
91 |
82 |
87 |
92 |
83 |
72 |
87 |
79 |
92 |
Willingness to Search |
Q8.2#13 |
2 |
20% |
91 |
71 |
102 |
77 |
86 |
72 |
107 |
85 |
79 |
100 |
Trial Volume |
Q8.4#3 |
4 |
19% |
92 |
90 |
72 |
108 |
82 |
96 |
97 |
90 |
79 |
103 |
Net Promoter Score |
Q8.2#11 |
2 |
19% |
93 |
55 |
101 |
103 |
94 |
61 |
107 |
106 |
58 |
109 |
Facings |
Q8.7#5 |
6 |
19% |
94 |
99 |
66 |
105 |
81 |
72 |
107 |
45 |
99 |
110 |
Redemption Rates |
Q8.8#9 |
8 |
19% |
95 |
102 |
69 |
100 |
92 |
96 |
104 |
82 |
94 |
92 |
Cost of Coupons/ Rebates |
Q8.8#10 |
8 |
19% |
95 |
102 |
77 |
90 |
87 |
96 |
97 |
87 |
102 |
79 |
Category Development Index |
Q8.1#5 |
2 |
18% |
97 |
95 |
87 |
103 |
97 |
83 |
86 |
99 |
92 |
79 |
Reservation Price |
Q8.8#2 |
7 |
17% |
98 |
99 |
93 |
84 |
96 |
72 |
89 |
100 |
86 |
99 |
GMROII |
Q8.7#10 |
6 |
16% |
99 |
102 |
84 |
99 |
98 |
96 |
89 |
87 |
94 |
100 |
Percent Good Value |
Q8.8#3 |
7 |
16% |
99 |
91 |
108 |
77 |
107 |
67 |
72 |
100 |
109 |
62 |
Percentage Sales with Coupon |
Q8.8#11 |
8 |
16% |
99 |
109 |
88 |
90 |
98 |
96 |
89 |
93 |
105 |
86 |
Price per Statistical Unit |
Q8.3#5 |
3 |
16% |
102 |
91 |
102 |
90 |
104 |
83 |
65 |
104 |
94 |
79 |
Conjoint Utilities |
Q8.4#11 |
4 |
14% |
103 |
81 |
99 |
108 |
101 |
92 |
89 |
107 |
94 |
89 |
Residual Elasticity |
Q8.8#6 |
7 |
14% |
104 |
98 |
109 |
77 |
102 |
92 |
97 |
109 |
92 |
92 |
Percent Time on Deal |
Q8.8#13 |
8 |
14% |
105 |
102 |
96 |
95 |
105 |
96 |
89 |
97 |
102 |
104 |
Conjoint Utilities & Volume Projection |
Q8.4#12 |
4 |
13% |
106 |
87 |
99 |
108 |
103 |
92 |
89 |
103 |
105 |
89 |
Pass-Through |
Q8.8#15 |
8 |
11% |
107 |
102 |
107 |
100 |
108 |
83 |
97 |
102 |
108 |
100 |
Share of Requirements |
Q8.1#9 |
2 |
10% |
108 |
102 |
102 |
105 |
106 |
106 |
106 |
108 |
99 |
108 |
Average Deal Depth |
Q8.8#14 |
8 |
10% |
109 |
110 |
105 |
100 |
109 |
96 |
97 |
105 |
107 |
104 |
Heavy Usage Index |
Q8.1#10 |
2 |
6% |
110 |
101 |
110 |
107 |
110 |
96 |
110 |
110 |
110 |
104 |
Table 1.3. Ranking of Metrics by Category/Chapter (See Appendix A for complete survey)
Metric |
Section in Survey |
Question Number |
Chapter in Book |
% Saying Very Useful |
Ranking in Survey Section |
Dollar Market Share |
1 |
Q8.1#1 |
2 |
67% |
1 |
Unit Market Share |
1 |
Q8.1#2 |
2 |
61% |
2 |
Market Penetration |
1 |
Q8.1#6 |
2 |
45% |
3 |
Relative Market Share |
1 |
Q8.1#3 |
2 |
44% |
4 |
Brand Penetration |
1 |
Q8.1#7 |
2 |
34% |
5 |
Hierarchy of Effects |
1 |
Q8.1#11 |
2 |
23% |
6 |
Penetration Share |
1 |
Q8.1#8 |
2 |
22% |
7 |
Brand Development Index |
1 |
Q8.1#4 |
2 |
21% |
8 |
Category Development Index |
1 |
Q8.1#5 |
2 |
18% |
9 |
Share of Requirements |
1 |
Q8.1#9 |
2 |
10% |
10 |
Heavy Usage Index |
1 |
Q8.1#10 |
2 |
6% |
11 |
Customer Satisfaction |
2 |
Q8.2#12 |
2 |
71% |
1 |
Loyalty |
2 |
Q8.2#8 |
2 |
69% |
2 |
Brand Awareness |
2 |
Q8.2#1 |
2 |
61% |
3 |
Willingness to Recommend |
2 |
Q8.2#10 |
2 |
57% |
4 |
Top of Mind |
2 |
Q8.2#2 |
2 |
50% |
5 |
Consumer Beliefs |
2 |
Q8.2#5 |
2 |
48% |
6 |
Purchase Habits |
2 |
Q8.2#7 |
2 |
43% |
7 |
Likeability |
2 |
Q8.2#9 |
2 |
43% |
8 |
Consumer Knowledge |
2 |
Q8.2#4 |
2 |
40% |
9 |
Purchase Intentions |
2 |
Q8.2#6 |
2 |
39% |
10 |
Ad Awareness |
2 |
Q8.2#3 |
2 |
23% |
11 |
Willingness to Search |
2 |
Q8.2#13 |
2 |
20% |
12 |
Net Promoter Score |
2 |
Q8.2#11 |
2 |
19% |
13 |
Margin % |
3 |
Q8.3#2 |
3 |
78% |
1 |
Unit Margin |
3 |
Q8.3#1 |
3 |
65% |
2 |
Variable and Fixed Costs |
3 |
Q8.3#6 |
3 |
60% |
3 |
Marketing Spending |
3 |
Q8.3#7 |
3 |
52% |
4 |
Average Price per Unit |
3 |
Q8.3#4 |
3 |
51% |
5 |
Contribution Margin % |
3 |
Q8.3#9 |
3 |
47% |
6 |
Contribution per Unit |
3 |
Q8.3#8 |
3 |
40% |
7 |
Break-Even Sales |
3 |
Q8.3#10 |
3 |
40% |
8 |
Channel Margin |
3 |
Q8.3#3 |
3 |
30% |
9 |
Price per Statistical Unit |
3 |
Q8.3#5 |
3 |
16% |
10 |
Target Revenues |
4 |
Q8.4#2 |
3 |
71% |
1 |
Target Volumes |
4 |
Q8.4#1 |
3 |
70% |
2 |
Annual Growth % |
4 |
Q8.4#7 |
4 |
69% |
3 |
Volume Projections |
4 |
Q8.4#6 |
4 |
56% |
4 |
Penetration |
4 |
Q8.4#5 |
4 |
50% |
5 |
Growth CAGR |
4 |
Q8.4#8 |
4 |
38% |
6 |
Repeat Volume |
4 |
Q8.4#4 |
4 |
36% |
7 |
Brand Equity Metrics |
4 |
Q8.4#10 |
4 |
26% |
8 |
Cannibalization Rate |
4 |
Q8.4#9 |
4 |
24% |
9 |
Trial Volume |
4 |
Q8.4#3 |
4 |
19% |
10 |
Conjoint Utilities |
4 |
Q8.4#11 |
4 |
14% |
11 |
Conjoint Utilities & Volume Projection |
4 |
Q8.4#12 |
4 |
13% |
12 |
Customers |
5 |
Q8.5#1 |
5 |
67% |
1 |
Retention Rate |
5 |
Q8.5#3 |
5 |
63% |
2 |
Customer Profit |
5 |
Q8.5#4 |
5 |
41% |
3 |
Customer Lifetime Value |
5 |
Q8.5#5 |
5 |
39% |
4 |
Average Acquisition Cost |
5 |
Q8.5#7 |
5 |
36% |
5 |
Average Retention Cost |
5 |
Q8.5#8 |
5 |
33% |
6 |
Recency |
5 |
Q8.5#2 |
5 |
29% |
7 |
Prospect Lifetime Value |
5 |
Q8.5#6 |
5 |
21% |
8 |
Sales Total |
6 |
Q8.6#3 |
6 |
70% |
1 |
Sales Potential Forecast |
6 |
Q8.6#2 |
6 |
62% |
2 |
Sales Force Effective |
6 |
Q8.6#4 |
6 |
54% |
3 |
Compensation |
6 |
Q8.6#5 |
6 |
49% |
4 |
Sales Funnel, Sales Pipeline |
6 |
Q8.6#7 |
6 |
44% |
5 |
Workload |
6 |
Q8.6#1 |
6 |
36% |
6 |
Break-Even Number of Employees |
6 |
Q8.6#6 |
6 |
23% |
7 |
Inventories |
7 |
Q8.7#7 |
6 |
43% |
1 |
Total Distribution |
7 |
Q8.7#4 |
6 |
34% |
2 |
Out of Stock % (OOS) |
7 |
Q8.7#6 |
6 |
33% |
3 |
Product Category Volume (PCV) |
7 |
Q8.7#3 |
6 |
33% |
4 |
Direct Product Profitability (DPP) |
7 |
Q8.7#9 |
6 |
30% |
5 |
Markdowns |
7 |
Q8.7#8 |
6 |
26% |
6 |
Numeric Distribution % |
7 |
Q8.7#1 |
6 |
22% |
7 |
All Commodity Volume (ACV) |
7 |
Q8.7#2 |
6 |
22% |
8 |
Facings |
7 |
Q8.7#5 |
6 |
19% |
9 |
Gross Margin Return on Inventory Investment (GMROII) |
7 |
Q8.7#10 |
6 |
16% |
10 |
Price Premium |
8 |
Q8.8#1 |
7 |
54% |
1 |
Optimal Price |
8 |
Q8.8#5 |
7 |
41% |
2 |
Incremental Sales or Promotional Lift |
8 |
Q8.8#8 |
8 |
41% |
3 |
Price Elasticity |
8 |
Q8.8#4 |
7 |
39% |
4 |
Baseline Sales |
8 |
Q8.8#7 |
8 |
34% |
5 |
Percentage Sales on Deal |
8 |
Q8.8#12 |
8 |
21% |
6 |
Redemption Rates |
8 |
Q8.8#9 |
8 |
19% |
7 |
Cost of Coupons/Rebates |
8 |
Q8.8#10 |
8 |
19% |
8 |
Reservation Price |
8 |
Q8.8#2 |
7 |
17% |
9 |
Percent Good Value |
8 |
Q8.8#3 |
7 |
16% |
10 |
Percentage Sales with Coupon |
8 |
Q8.8#11 |
8 |
16% |
11 |
Residual Elasticity |
8 |
Q8.8#6 |
7 |
14% |
12 |
Percent Time on Deal |
8 |
Q8.8#13 |
8 |
14% |
13 |
Pass-Through |
8 |
Q8.8#15 |
8 |
11% |
14 |
Average Deal Depth |
8 |
Q8.8#14 |
8 |
10% |
15 |
Effective Reach |
9 |
Q8.9#6 |
9 |
42% |
1 |
Impressions |
9 |
Q8.9#1 |
9 |
41% |
2 |
Effective Frequency |
9 |
Q8.9#7 |
9 |
37% |
3 |
Visitors |
9 |
Q8.9#15 |
9 |
37% |
4 |
Share of Voice |
9 |
Q8.9#8 |
9 |
36% |
5 |
Visits |
9 |
Q8.9#14 |
9 |
36% |
6 |
Clickthrough Rate |
9 |
Q8.9#10 |
9 |
35% |
7 |
Net Reach |
9 |
Q8.9#4 |
9 |
34% |
8 |
Cost per Customer Acquired |
9 |
Q8.9#13 |
9 |
32% |
9 |
Average Frequency |
9 |
Q8.9#5 |
9 |
31% |
10 |
Cost per Thousand |
|||||
Impression (CPM) |
9 |
Q8.9#3 |
9 |
28% |
11 |
Pageview |
9 |
Q8.9#9 |
9 |
28% |
12 |
Cost per Click (CPC) |
9 |
Q8.9#11 |
9 |
27% |
13 |
Abandonment Rate |
9 |
Q8.9#16 |
9 |
24% |
14 |
Cost per Order |
9 |
Q8.9#12 |
9 |
23% |
15 |
Gross Rating Points |
9 |
Q8.9#2 |
9 |
23% |
16 |
Net Profit |
10 |
Q8.10#1 |
10 |
91% |
1 |
Return on Investment (ROI) |
10 |
Q8.10#3 |
10 |
77% |
2 |
Return on Sales (ROS) |
10 |
Q8.10#2 |
10 |
69% |
3 |
Return on Marketing Investment (ROMI) |
10 |
Q8.10#8 |
10 |
49% |
4 |
Net Present Value (NPV) |
10 |
Q8.10#6 |
10 |
46% |
5 |
Economic Profit (EVA) |
10 |
Q8.10#4 |
10 |
41% |
6 |
Payback |
10 |
Q8.10#5 |
10 |
41% |
7 |
Internal Rate of Return (IRR) |
10 |
Q8.10#7 |
10 |
38% |
8 |
Survey Sample
Our survey was completed by 194 senior marketing managers and executives. More than 100 held the title of Vice President/Director/Manager or "Head" of Marketing, some with global responsibility. Most held titles such as VP of Marketing, Marketing Director, and Director Sales and Marketing. There were 10 presidents and C-level managers with heavy marketing responsibilities, and the remaining respondents included product/project/category managers, trade marketing managers, pricing managers, key account managers, development managers, and assistant/associate vice presidents.
Industries represented in our survey are too diverse to easily summarize. No more than 10 responses from a single industry were recorded, and the respondents listed their markets as aerospace, automobiles, banking, chemicals, consumer goods, construction, computers, consulting, education, industrial distribution, investments, government, health care, housing, insurance, information technology, manufacturing, materials, medical devices, paints, pharmaceuticals, retailing, software, telecommunications, and transportation. Roughly 20% of respondents did not provide a specific industry.
Survey questions asked respondents to rate the usefulness of particular metrics in monitoring and managing their businesses. Note that this survey asks managers to give ratings with respect to how these metrics are actually used but does not inquire about the reason. Nor did the survey offer guidance concerning the meaning of "useful"—that was left as a matter of interpretation for survey participants.
Financial metrics are generally rated very high in usefulness compared to any true marketing metrics. This is not surprising given that financial metrics are common to almost every business.