Question

Topic: Strategy

Key Performance Indicators In Marketing

Posted by Anonymous on 12/12/2007 at 5:33 AM ET 500 Points
hi!

please help me find the key performance measures in marketing, or if you can help me find measuring the effectivity of a department like marketing department. i am into a direct selling and networking business of a clothing company. or better if you have a better website on this. thank you
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  • Posted by Jay Hamilton-Roth on 12/12/2007 at 9:34 AM Accepted
    For e-marketing: https://www.grokdotcom.com/2007/10/30/order-acquisition-ratio/

    Marketing KPI:
    https://www.ibisassoc.co.uk/key-performance-indicators.htm
    https://thedojo.traceworks.com/2006/09/05/headlight-sneak-peak-marketing-kp...
    https://www.clickz.com/showPage.html?page=3527431
  • Posted by BJC on 12/14/2007 at 9:35 AM Accepted
    If you are measuring the effectiveness of marketing for executive management then you need to do an ROI. What is the return of investment for how much you spent? Sales - product/service cost-marketing cost=net profit. Net profit/# orders = Cost/Profit per order.
    You can do the same to determine the cost/profit per customer. These are very basic ways to measure the effectiveness and should be done for each campaign and then aggregate for the whole year. You should split it between your in-house file of customers vs. prospects if you maintain your marketing list that way.
    Doing it by customer lets you understand what the value of each customer is for the year and then you can determine lifetime value. LTV will help you determine what the marketing spend to acquire a new customer should max at.
  • Posted by koen.h.pauwels on 12/14/2007 at 8:45 PM Accepted
    Great question, dozens of answers. Key is that there is no 'silver bullet', i.e. one measure for each marketing department, you will have to see what fits your situation.

    Besides the ideas on this website, I like www.marketingnpv.com , the book 'Marketing and the Bottom Line' by Tim Ambler, and I have also done some work myself https://mba.tuck.dartmouth.edu/pages/faculty/koen.pauwels/

    Good luck!
  • Posted on 9/25/2011 at 10:31 PM Member
    Some examples are:
    New customers acquired
    Demographic analysis of individuals (potential customers) applying to become customers, and the levels of approval, rejections, and pending numbers.
    Status of existing customers
    Customer attrition
    Turnover (ie, Revenue) generated by segments of the customer population.
    Outstanding balances held by segments of customers and terms of payment.
    Collection of bad debts within customer relationships.
    Profitability of customers by demographic segments and segmentation of customers by profitability.
    Read more: https://keyperformanceindicators.info
    Many of these customer KPIs are developed and managed with customer relationship management (CRM) software.
    Faster availability of data is a competitive issue for most organizations. For example, businesses which have higher operational/credit risk (involving for example credit cards or wealth management) may want weekly or even daily availability of KPI analysis, facilitated by appropriate IT systems and tools.
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