4.10 customer management(2)
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Week21SV_SeminarSlides21.pptxMARK3014 Customer Management
Week 20
Marketing Metrics
Let’s Recap
Marketing Metrics
What is a ‘metric’ ?
‘Measuring system that quantifies a trend, dynamic or characteristic’ *
‘A number that measures something ; or multiple numbers that come together in one metrics ‘equation’ **
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* Farris, Bendle, Pfeifer, Reibstein (2010)
* * Hatcher (2015)
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Organisations use a number of metrics (KPIs) to evaluate the success of their customer management strategies. Most commonly used metrics are:
Net Promoter Score (NPS)
Customer Acquisition Cost (CAC)
Customer Lifetime Value (CLV)
CAC-to-CLV
Customer Satisfaction Score (CSAT)
Customer Effort Score (CES)
Customer Retention Rate
Revenue Churn
First Contact Resolution
Average Ticket Time
For CW2, choose three metrics, one for each digital objective/strategy,
then explain why
Typical CM Metrics
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Metrics Linked To Customer Lifecycle
Acquisition
Development
Retention
(2) Customer acquisition cost
(4) CAC to CLV
(3) Customer lifetime value
(5) Customer Satisfaction Score CSAT
(7) Customer retention rate
(8) Revenue churn
(6) Customer effort score
(9) First contact resolution
(10) Average ticket time
(1) Net Promoter Score NPS
Example overlay of CW2 metrics onto customer lifecycle
Typical CM Metrics
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Metrics linked to each customer engagement activity
Acquisition
Development
Retention
Example overlay of CW2 metrics onto customer lifecycle
A range of engagement channels are used, depending on the objectives and stage of the customer lifecycle
For example …
Search Engine Optimization (SEO)
Content Marketing
Social Media Marketing (paid and organic)
Paid Advertising
Email Marketing
Video Marketing
….
Each of these engagement channels will have metrics aligned to their activity to track effectiveness
… see next pages for examples
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Digital metrics – paid media, the organisations pays to reach customers …
| Activity examples | Metric/s examples* |
| Email (push) | Reach ; open rate ; click through ; enquire ; buy |
| SMS | Reach ; open rate ; direct response ; or click through ; buy |
| In app push notification | Reach ; open rate ; direct response ; click through ; buy |
| Paid advert (banner, display, web, in app, social media) | Reach, frequency of reach ; impressions ; share of voice ; ad to enquiry ratio ; ad to sales ratio |
| Paid search | Impressions on search engine page ; average position on search engine page ; user clicks ; click through rate (clicks/impressions) ; sales per click ; clicks per adword ; sales per adword |
| Organic search (no spend) | Average search position ; known keywords ; user click through ; click through by keyword ; sales per click |
| Overarching Metric/s* |
| Cost per click ; cost per thousand impressions ; cost per advertising generated sale ; cost per customer acquired |
| Advertising to sales ratio |
| Frequency (volume of times audience see’s your message over a given time period) |
| Share of voice (but tends to be across all advertising spend) |
* Hemann, C . and Burbary, K. (2014) ; Hatcher, A. [2015] ; Farris, P.W., Bendle, N.T., Pfeifer, P.E., and Reibstein, D.J. [2010]
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Digital metrics – owned media, organisation owns platform to reach customers
| Activity examples* | Metric/s examples* |
| Web pages/content | Page visits ; unique page visits ; bounce rates (single page view) ; time on page ; click through’s ; page exit rate (versus other pages) ; View or downloads (PDF, ebook etc) ; blog visits ; click on service functionality (Virtual assistants ; Q&A ; Webchat ; scan a QR code ; leave a message/contact us) ; cart abandonment rate ; enquiries generated ; sales ; cost per impression ; cost per click ; cost per sale |
| Mobile enabled web pages | |
| App | (In addition to above) views ; downloads ; app service usage ; usage frequency ; upsell |
| You Tube | Views, subscribers ; likes/dislikes |
| (Your) Facebook | Total likes ; reach for viewing posts ; reach for paid ad’s ; engaged users ; plus combination metrics |
| (Your) Twitter | Followers ; retweets ; replies ; click through on links |
| Organic search | On search engines - average ranking/position ; impressions ; clicks ; known keywords ; clicks by keywords ; sales enquiries by search engine ; sales enquiries by keywords |
* Hemann, C . and Burbary, K. (2014) ; Hatcher, A. [2015] ; Farris, P.W., Bendle, N.T., Pfeifer, P.E., and Reibstein, D.J. [2010]
Digital metrics – earned media, digital platform conversations that are taking place, that may be talking about your organisation
| Activity examples* | Metric/s examples* |
| Conversation volume Share of voice (one brand versus another) in total and voice tracks Share of conversation (% of conversation about your brand versus the industry or key competitors) Sentiment – positive ; neutral ; or negative ‘chatter’ about your brand Identified sentiment keywords (what are people saying …) Split by geography | |
| Flickr | |
| Customer feedback social sites (i.e. Reevoo) | Volume of reviews ; comparative review performance ; verbatim comments |
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Let’s form 3-4 groups. Each group will select a couple of metrics. Please use the KPI calculator by HubSpot to develop your understanding of the selected metrics.
You’ll present to your peers the metrics you have selected explaining their definitions and use by the organisations.
Group Activity
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