How would our CEO like us to make marketing decisions?

How should we make marketing decisions?

Four Essential Non-Financial Metrics

Test Drive Take Rate ChurnCSAT &

Net Promoter

Test Drive

Signals Interest

Leads to commitment

Higher conversion rates

Allows customer to evaluate you

Can calculate probability of purchase

Test Drive

Signals Interest

Leads to commitment

Higher conversion rates

Allows customer to evaluate you

Can calculate probability of purchase

?How could you design a test drive?

# of Accepted Offers

Take Rate

# of Offers Made

Measure of campaign effectiveness

Purchases Test DrivesFree Downloads

?How could you measure Take Rate?

Churn

Essential Loyalty Metric

Easier and cheaper to keep a

customer than create a new one

% of existing customers who

stop purchasing in a given period

(30 days, 90 days, year)

?How could you measure churn?

?How could you affect your company’s churn rate?

?How would reducing churn affect your

company’s revenue?

% of Promoters – % of Detractors

Net Promoter ScoreMeasure of loyalty or satisfaction

On a scale of 1-10, how likely are you to recommend ______ to friends?

(9-10) (1-6)

Requires  a  survey

Thinking About Your Marketing Budget

Demand Generation

Branding & Awareness

Customer Relationships

Shaping Markets

Infrastructure

LeadersLaggardsShaping Markets

14%

Branding 7.5%

Customer Rel. 11%

Demand Generation 58%

Infrastructure and Capabilities 10%

Shaping Markets

9%

Branding 13%

Customer Rel. 14%

Demand Generation 48%

Infrastructure and Capabilities 16%

From Mark Jeffrey’s book, Data-Driven Marketing

July Marketing Experiment

Data-Driven Marketing: 15 Metrics Everyone in Marketing Should Know

This is a great book to help you think about marketing metrics. Jeffrey focuses on 15 specific metrics and demonstrates how they can be used to save money or increase revenue.

The best feature of the book is that it comes with downloadable spreadsheets that you can use for your company.

Marketing Metrics: The Definitive Guide to Measuring Marketing Performance (2nd Edition)

This is a good reference book to have around. It’s an encyclopedia of business metrics that may be used in a variety of scenarios. The authors define the metric, discuss how it is typically used, and list the pros and cons of implementing it.

Book Recommendations