Measuring Marketing Performance and Productivity
"Whatever gets measured is likely to get managed". Metrics are about holding your strategies
accountable, testing and continually improving upon. An Entrepreneur should determine the
key metrics for one's business and should follow that specific statistic.
With the use of financial formulas when a company reviews its financial metrics,
numbers are indicators of how one can focus on in their financial statements. These numbers
are extremely important for any business in deciding its future.
Profitability measurement components and customer lifetime value are both equally
valuable data. One that helps in understanding the net profit coming from individual
customers and the Other objective is to attract and retain a customer.
Reference: Ambler, T - 2003 - Marketing and the Bottom Line - Chapter 1 - Page 17 - 40
Lenskold, J. D - 2003 - Marketing ROI - The Path to Campaign, Customer, and Corporate
Profitability -Chapter 6, Measuring Return on Investment
Mulhern, F. J. (1999) Customer Profitability Analysis -Measurement, Concentration, and
Research Directions
Patterson, L. (2009), Marketing Metrics in Action, Chapter 5, Finance from Adversaries to
Allies