Well, apparently this company need no introduction, if I ask you, which is the nearest store that comes to your mind if you are running out of groceries? yes, you guessed it right its ‘COLES’. Coles is an Australian supermarket chain owned by west farmers having its stores on more than 1000 locations, with over more than 100,000 employees working under its belt along with an annual revenue of jaw dropping $33 billion.(NewsComAu, 2016) along with its arch rival Woolworth holds around 80% of the Australian market.
What is Marketing Metrics:
There is an old saying ‘we cant measure, what we don’t measure’. Marketing metrics refers to a set of measures or tools to identify, compare and interpret the marketing performance of a company. Be it Coles, Woolworth, Aldi or any other business giant, one would definitely use marketing metrics or marketing evaluation techniques to compare and evaluate the performance and the nature of a brand.Every company follows a set of metrics which helps them to identify whether the goods and services provided by the firm meets the needs of the customers and stakeholders or not, such strategies improve the performance of the firm and moreover provides diagnostics information on how to improve things (Sharp, 2013). Marketing metrics includes namely financial metrics, behavioral metrics, memory metrics, physical availability metrics, marketing availability metrics, customer profile metrics.
- Behavioral metrics: This metrics is generally used in order to measure the consumer behavior by using primary or secondary data, conducting surveys, by taking reviews from a panel of consumers and so forth.
- Financial metrics: This is one of the most important metrics in market evaluation, financial metrics helps to evaluate the financial statistics of the company it is mathematically expressed as profit = sales revenue – direct costs(invested amount).
- Memory metrics: A metrics which which helps to measure on how the consumer think and feel about the brand by using qualitative and quantitative services is referred to as memory metrics, this includes brand awareness, attitude and customer satisfaction.
- Physical availability metrics: This metrics refers to a strategy in which, making the brand accessible at a visible distance will contribute to its financial revenue.
- Customer profile metrics: This metrics helps to describe the profile of the customers their behavior and their tastes.
But how does coles uses this metrics?
Behavioral metrics: According to a recent survey conducted in one of the stores of coles they found out that using LED lights helps to extend the nutritious quality of many fresh foods.Moreover, people respond well when there are fruits and vegetables are placed in front of the supermarkets. Furthermore, GPS system in such stores further helps to analyse the consumer behavior.(Thoughts.manthan.com, 2016)
Financial metrics: This metrics includes Return of investment (ROI) net profit revenue and more. In the following figure one can state that the sales growth of coles is enhancing year as compared from its previous years.
Memory metrics: A down down ad campaign initiated by coles has helped them tremendously by giving away chicken for reasonable price has enhanced its sales to a profitable one.(Canning and Canning, 2016)
Physical available metrics: From their best quality fruits and vegetables to baby products are all made available under one roof which are made available with proper indications and labels, customer service desk at each store helps the customer to fetch their essential product at any time.
Customer profile metrics: ‘Flybuys’ and other loyalty programs initiated by coles helps the company to collect data of its customers including personal data, buying behavior, buying vegetarian or non-vegetarian foods and other information helps the company to analyse and make necessary changes.(NewsMediaWorks, 2016)
How to increase CLV ?
Customer lifetime value is based on the estimation of customer relationship based on future profitability from the customer over its lifetime.(Bendle, 2016)
The slogan of coles is ‘if you don’t take care your customers, some else will’(Colestraining.com, 2013)
Therefore, in order to hold these customers coles has initiated various measures such as:
- Good customer service
- Bring back the old customers by promoting themselves on various social medias
- By initiating Flybuys and other loyalty programs
- By giving discounts and other fair deals.
- Wide variety of products under one roof
I personally recommend coles to initiate marketing dashboard techniques, which is a scorecard record of the company’s performance and to inculcate such practices in their business which will help the business to use the available resources effectively and accurately. Therefore, based on the metrics mentioned above one can conclude that initiating marketing evaluation metrics will enhance the growth of any firm and also contribute to its profitability.
Bendle, Neil.T 2016, Marketing metrics : The manager’s guide to measuring marketing performance, Pearson education.
Colestraining.com. (2013). Coles Training – Retaining Customers. [online] Available at: http://www.colestraining.com/customer-service/obtaining-and-retaining-customers/ [Accessed 26 Sep. 2016].
Canning, S. and Canning, S. (2016). Coles goes down down with finger ridin’ chicken – Mumbrella. [online] Mumbrella. Available at: https://mumbrella.com.au/coles-goes-finger-ridin-chicken-372131 [Accessed 26 Sep. 2016].
NewsComAu. (2016). Coles lifts annual sales 6.1pc to $33.7b. [online] Available at: http://www.news.com.au/finance/business/coles-lifts-annual-sales-61-to-337b/story-fnda1bsz-1226435412540 [Accessed 26 Sep. 2016].
NewsMediaWorks. (2016). Woolworths & Coles lead the way in retail advertising. [online] Available at: http://www.newsmediaworks.com.au/woolworths-coles-lead-the-way-in-retail-advertising/
Sharp, B 2013, Marketing: Theory, Evidence, Practice, Oxford University Press, Melbourne, Australia.
Thoughts.manthan.com. (2016). Coles and Woolworth Study Consumer Behavior in Concept Stores | Fresh. [online] Available at: https://thoughts.manthan.com/2014/03/24/coles-and-woolworth-study-consumer-behavior-in-concept-stores [Accessed 26 Sep. 2016].
student id: 216034001
Name: Justin Jacob