While analytics help managers place the data in the context of the business, market, brand and consumers, providing actionable information, marketing metrics represent the actual data points (Marketo, 2018). Marketing analytics help organizations recognize big-picture marketing trends, evaluate the success of various strategies and actions and understand the return-on-investment of their programs. Analytics also contribute to the monitoring of trends over time and support forecasting trends and results.
Marketing analytics metrics are measures of a data-driven project to maximize marketing effectiveness and they can include various key performance indicators and metrics that determine the effectiveness of a marketing strategy.
Understanding marketing analytics metrics provides businesses the opportunity to maximize effectiveness, increase accountability, evaluate return on investment and minimize marketing costs. Marketing analytics metrics are also great ways to assess a marketing analytics strategy (Davis, 2018), as this next video related to Google Analytics shows.
Considering the development of digital intelligence and big data, marketers now have at their disposal a variety of metrics, including related to the marketing strategy, brand metrics, customer related metrics, digital measures and other specialized metrics for evaluating their activity. We include below a few examples of some of the most used metrics in marketing practice.
Strategic metrics
- Market size and marketing growth
- Return on Marketing Investment (ROI): (Marketing Revenue * Contribution Margin) / Marketing Spending
Brand metrics
- Brand Recall: consumers’ ability to retrieve the brand from memory
- Brand Recognition: consumers’ ability to confirm a prior exposure to a brand
Customer metrics
- renewal or customer return rates
- intention to recommend
- consumer ratings and reviews
- customer lifetime value
Digital Marketing Metrics
- Total Conversions: number of people who have taken a desired marketing outcome.
- Impressions: the number of time marketing content has been displayed.
- Total Reach: the number of people who received impressions.
- Conversion Rate: the total conversions divided by the total reach.
- Total Visits: Total visits to a webpage.
- Unique Visitors: Total unique visitors to a webpage.
- Referrals: number of people who clicked a link from another website to get to the website.
- Click Through Rate (CTR): Ratio of people who click on a link compared to the total number of people who saw the link.
Development metrics
- Low cost metrics: the ability to deliver goods and services at a low cost
- Customization: the ability to tailor products and services to customers
- Quality
Studies have shown that when data is presented in graphic formats, in interactive maps and charts, individuals will understand the information more easily. Some of the tools that can be used in this regard include Tableau and MAXQDA Analytics. Nevertheless, visualization can also prove helpful in the creation of dashboards and infographics that summarize and synthesize the key information and findings of marketing analytics with decision-making purposes.
Reporting Tools
Marketing researchers need to be good communicators, to transform and translate complex data and conclusions into understandable and actionable information that is easy to understand and apply in decision-making by executives, managers, and practitioners. Researchers also need to avoid common mistakes when displaying data and ensure that results are not miscommunicated and misinterpreted.
There are many software options that marketing researchers can use in transmitting research conclusions, including the advanced data visualization software Tableau, Microsoft Office options like Word, PowerPoint, and Excel that include features for report development and data visualization, as well as free Google Drive solutions, such as Google Docs, Sheets, and Slides. There are also other digital tools for presentation and data visualization, including Prezi, Canva, and Piktochart.
Research Reports
Research reports need to detail the purpose of the survey and how the information will be used, what was the research objective the study was attempting to address, and what were the research questions. Besides a very thorough analysis of the data and clear presentation of results and conclusions, all the initial steps of the research project need to be presented. For example, researchers need to discuss their data collection methods, data, sample size and demographics, response rate, and methods were used to receive a decent response rate (reminders and incentives). Sampling limitations should also be mentioned.
Results can be reported in a variety of formats, be it a memo, infographic, slide presentation, or formally written report. The report should include the key sections discussed below:
- Executive Summary: a practical and professional abstract of the key points of the report, key findings
- Purpose: purpose and research objective, detailed research questions
- Methodology: data collection method, collection dates, response rate, sample size
- Respondent Profile: collected sample representation, demographics, returned sample composition
- Detailed Findings: descriptive statistics, visual display of data, results from any hypotheses tested using inferential statistics, conclusions, and suggestions for decision-makers
- Appendices: The survey instrument, full respondent comments, long or very detailed tables
Keep in mind that your report and its presentation need to be adapted to the profile, knowledge level, and expectations of the audience. Also, consider what your audience expectations and needs are regarding the market research study and provide relevant information with your reporting. Adapt your visuals and reporting techniques so that your findings are easy to understand, are not misinterpreted, and can be immediately used in strategic decision-making processes. The next video provides more information about good practices in preparing a market research report.
