The Marvelous World of  Marketing Metrics    Jeff Nelson, Anduro Marketing            @JeffxNelson                  &Joann...
Route to Better Marketing Marketing Metrics   1.    Profit   2.    ROI   3.    Payback   4.    Retention rate   5.    Cust...
Audience ParticipationTweet your response using #TTYYC• What is the normal price of chicken?
Customer’s PerspectiveChicken Purchase• Non-member price is $8.19/lb• Non-member - $8.19/lb * 3 lb = $24.57• Member price ...
Chicken Purchases• 168 customers buy 3 lb each     [500 lb / 3 lb/customer]• 7 day campaign• 24 people/day     [168 / 7]• ...
Manager’s PerspectiveChicken Purchase• Non-member price is $8.19/lb• Markup is 18%• Cost is $6.94/lb• At $5.00/lb the loss...
Audience ParticipationTweet your response using #TTYYC• Is this campaign successful? Why?
Metric #1: The Success Metric - ProfitProfit = Revenues - Costs    • $ or %    • Sometimes called “profit margin“
Total Purchase
Basket Purchases• Total purchase per customer - $70• 168 customers• Assume Mark-up - 18%     New Sales!! New Customers!!
Metric #2: The Return On Investment MetricReturn on Campaign Investment = Net Profit / Investment    • Sometimes called “R...
#2 ROI• Net profit - $278• Marketing investment - $1,120       [(970) + (50+ (100)]ROI:• Net profit / investment       [27...
Metric #3: The Payback MetricPayback = The Time for Cash Benefit to Equal Costs    • Time can be days, weeks, months or ye...
#3 PaybackMarketing investment - $1,120Payback:  • Gross profit per customer - $8.39    [1,398 / 166]  • # customers to br...
#4 Retention RateMetric #4: The Loyalty MetricRetention = % of Existing Customers Who Continue toPurchase Your Product or ...
Audience ParticipationTweet your response using #TTYYC• How much are these new customers worth?
Metric #5: The Customer Value MetricCustomer Lifetime Value (CLTV) = Future Value of aCustomer       CLTV = Value – Acquis...
#5 Customer Lifetime Value• Gross profit per customer - $8.39• Acquisition cost per customer - $6.72  [$1,120 / 167 people...
#5 CLTV
Marketing Metrics Model© Joanne O’Connell & Jeff Nelson
#6 Brand StrengthMetric #6: The Brand Strength MetricBrand Strength = Ability to Recall a Product or Service For Safeway.c...
#7 Customer SatisfactionMetric #7: The Golden Marketing MetricCSAT = Customer Satisfaction Measured by Asking“Would you re...
Online Sentiment Score
#8 Cost per ClickMetric #8: The Essential Online MarketingMetricCost per Click (CPC) = Cost per Click from an Online Ad   ...
#9 Conversion RateMetric #9: The Essential Metric ConnectingOnline Clicks To DollarsTransaction Conversion Rate (TCR) = Th...
#10 Online Lift IndexMetric #10: The Online Comparison Metric OLFSMM = Social Media Visits *100 / Direct Visits OLFSEO = O...
Getting Started1. Measure  •    Create a Dashboard2. Analyze  •    Learn and make Conclusions3. Choose  •    Segments and ...
DashboardChannel Metrics      Marketing Metrics           Corporate Metrics
2012 09-18 - ttyyc - the marvelous world of (digital) marketing metrics v5
Upcoming SlideShare
Loading in...5
×

2012 09-18 - ttyyc - the marvelous world of (digital) marketing metrics v5

970

Published on

Presentation by Jeff Nelson and Joanne O.Connell outlining 10 important metrics for marketing, online marketing, digital marketing, advertising and marketing.

Published in: Business, Technology
0 Comments
4 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
970
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
0
Comments
0
Likes
4
Embeds 0
No embeds

No notes for slide

Transcript of "2012 09-18 - ttyyc - the marvelous world of (digital) marketing metrics v5"

  1. 1. The Marvelous World of Marketing Metrics Jeff Nelson, Anduro Marketing @JeffxNelson &Joanne O’Connell, O’Connell Enterprises @JoanneCalgary #ttyyc @MelroseRedMile
  2. 2. Route to Better Marketing Marketing Metrics 1. Profit 2. ROI 3. Payback 4. Retention rate 5. Customer lifetime value Marketing Metrics Model More Marketing Metrics 6. Brand 7. Customer satisfaction 8. Cost per click 9. Conversion rate 10. Online lift index Marketing Dashboard
  3. 3. Audience ParticipationTweet your response using #TTYYC• What is the normal price of chicken?
  4. 4. Customer’s PerspectiveChicken Purchase• Non-member price is $8.19/lb• Non-member - $8.19/lb * 3 lb = $24.57• Member price (on sale) is $5.00/lb• Member - $5.00/lb * 3 lb = $15.00• Total savings of $9.57 [24.57 – 15.00] Nice!
  5. 5. Chicken Purchases• 168 customers buy 3 lb each [500 lb / 3 lb/customer]• 7 day campaign• 24 people/day [168 / 7]• Total revenue of sales item - $2,500 [500 lb * $5/lb]
  6. 6. Manager’s PerspectiveChicken Purchase• Non-member price is $8.19/lb• Markup is 18%• Cost is $6.94/lb• At $5.00/lb the loss is $1.94/lb [8.19 – 5.00]• Selling 500 lb is a loss of $970 [1.94 * 500] Oops!
  7. 7. Audience ParticipationTweet your response using #TTYYC• Is this campaign successful? Why?
  8. 8. Metric #1: The Success Metric - ProfitProfit = Revenues - Costs • $ or % • Sometimes called “profit margin“
  9. 9. Total Purchase
  10. 10. Basket Purchases• Total purchase per customer - $70• 168 customers• Assume Mark-up - 18% New Sales!! New Customers!!
  11. 11. Metric #2: The Return On Investment MetricReturn on Campaign Investment = Net Profit / Investment • Sometimes called “Return on Ad Spend“
  12. 12. #2 ROI• Net profit - $278• Marketing investment - $1,120 [(970) + (50+ (100)]ROI:• Net profit / investment [278 / 1,120]• 25% Nice!
  13. 13. Metric #3: The Payback MetricPayback = The Time for Cash Benefit to Equal Costs • Time can be days, weeks, months or years
  14. 14. #3 PaybackMarketing investment - $1,120Payback: • Gross profit per customer - $8.39 [1,398 / 166] • # customers to breakeven - 134 [1,120 / 8.39] • Days to breakeven - 5.6 [134 – 24 customers/day]
  15. 15. #4 Retention RateMetric #4: The Loyalty MetricRetention = % of Existing Customers Who Continue toPurchase Your Product or Services • Retention rate = 1 – Churn rate • Safeway - 85% (a guess)
  16. 16. Audience ParticipationTweet your response using #TTYYC• How much are these new customers worth?
  17. 17. Metric #5: The Customer Value MetricCustomer Lifetime Value (CLTV) = Future Value of aCustomer CLTV = Value – Acquisition Cost (over a few years)
  18. 18. #5 Customer Lifetime Value• Gross profit per customer - $8.39• Acquisition cost per customer - $6.72 [$1,120 / 167 people]• Retention rate - 85%• Discount rate - 12%• Profit per customer for 1st year - $419 [$8.39 * 50 weeks] Note: more profit in future years• $1,070
  19. 19. #5 CLTV
  20. 20. Marketing Metrics Model© Joanne O’Connell & Jeff Nelson
  21. 21. #6 Brand StrengthMetric #6: The Brand Strength MetricBrand Strength = Ability to Recall a Product or Service For Safeway.ca: • www.Alexa.com - 223,782 • www.Compete.com - 6,104 • www.PRChecker.info - 6 out of 10 • www.Klout.com - 74 • http://Crowdbooster.com
  22. 22. #7 Customer SatisfactionMetric #7: The Golden Marketing MetricCSAT = Customer Satisfaction Measured by Asking“Would you recommend this product or service to a friendor colleague?” • Questionnaire • Merchandise returned • Complaints • Online sentiment score
  23. 23. Online Sentiment Score
  24. 24. #8 Cost per ClickMetric #8: The Essential Online MarketingMetricCost per Click (CPC) = Cost per Click from an Online Ad • Google (SEO and PPC) • Facebook and LinkedIn ads • Banner ads • Yellowpages ads
  25. 25. #9 Conversion RateMetric #9: The Essential Metric ConnectingOnline Clicks To DollarsTransaction Conversion Rate (TCR) = The % ofCustomers Who Purchase After Visiting Your Website
  26. 26. #10 Online Lift IndexMetric #10: The Online Comparison Metric OLFSMM = Social Media Visits *100 / Direct Visits OLFSEO = Organic Search Visits *100 / Direct Visits OLFPPC = Pay-per-Click Visits *100 / Direct Visits
  27. 27. Getting Started1. Measure • Create a Dashboard2. Analyze • Learn and make Conclusions3. Choose • Segments and Market channels4. Targets • Set for Channel, Market, Corporate
  28. 28. DashboardChannel Metrics Marketing Metrics Corporate Metrics

×