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

1. The Marvelous World of
Marketing Metrics
Jeff Nelson, Anduro Marketing
@JeffxNelson
&
Joanne O’Connell, O’Connell Enterprises
@JoanneCalgary
#ttyyc
@MelroseRedMile

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

4. Audience Participation
Tweet your response using #TTYYC
• What is the normal price of chicken?

5. Customer’s Perspective
Chicken 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!

6. 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]

7. Manager’s Perspective
Chicken 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!

8. Audience Participation
Tweet your response using #TTYYC
• Is this campaign successful? Why?

9. Metric #1: The Success Metric - Profit
Profit = Revenues - Costs
• $ or %
• Sometimes called “profit margin“

10. Total Purchase

11. Basket Purchases
• Total purchase per customer - $70
• 168 customers
• Assume Mark-up - 18%
New Sales!! New Customers!!

12. Metric #2: The Return On Investment Metric
Return on Campaign Investment = Net Profit / Investment
• Sometimes called “Return on Ad Spend“

13. #2 ROI
• Net profit - $278
• Marketing investment - $1,120
[(970) + (50+ (100)]
ROI:
• Net profit / investment
[278 / 1,120]
• 25%
Nice!

14. Metric #3: The Payback Metric
Payback = The Time for Cash Benefit to Equal Costs
• Time can be days, weeks, months or years

15. #3 Payback
Marketing investment - $1,120
Payback:
• 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]

16. #4 Retention Rate
Metric #4: The Loyalty Metric
Retention = % of Existing Customers Who Continue to
Purchase Your Product or Services
• Retention rate = 1 – Churn rate
• Safeway - 85% (a guess)

17. Audience Participation
Tweet your response using #TTYYC
• How much are these new customers worth?

18. Metric #5: The Customer Value Metric
Customer Lifetime Value (CLTV) = Future Value of a
Customer
CLTV = Value – Acquisition Cost
(over a few years)

19. #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

20. #5 CLTV

21. Marketing Metrics Model
© Joanne O’Connell & Jeff Nelson

22. #6 Brand Strength
Metric #6: The Brand Strength Metric
Brand 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

23. #7 Customer Satisfaction
Metric #7: The Golden Marketing Metric
CSAT = Customer Satisfaction Measured by Asking
“Would you recommend this product or service to a friend
or colleague?”
• Questionnaire
• Merchandise returned
• Complaints
• Online sentiment score

24. Online Sentiment Score

25. #8 Cost per Click
Metric #8: The Essential Online Marketing
Metric
Cost per Click (CPC) = Cost per Click from an Online Ad
• Google (SEO and PPC)
• Facebook and LinkedIn ads
• Banner ads
• Yellowpages ads

26. #9 Conversion Rate
Metric #9: The Essential Metric Connecting
Online Clicks To Dollars
Transaction Conversion Rate (TCR) = The % of
Customers Who Purchase After Visiting Your Website

27. #10 Online Lift Index
Metric #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

28. Getting Started
1. Measure
• Create a Dashboard
2. Analyze
• Learn and make Conclusions
3. Choose
• Segments and Market channels
4. Targets
• Set for Channel, Market, Corporate

29. Dashboard
Channel Metrics Marketing Metrics
Corporate Metrics