Marketing metrics…where to start

Briarne Boyd

Student Number :ID: 216046983

 

In the current economic climate it is vital that an business is not only competitive but is able to analyse how through their marketing campaign they are competitive. As outlined by Iacobucci (2014) “you cant manage what you don’t measure”, this being said the potential for companies to analyse its strengths and weaknesses as well as those of its competitors is significant. With the development of IT and social media the indicators which can be measured is vast. Companies want to be assured that what they are spending on marketing is having a positive effect on their business.

This being said where does a company start with metrics? The metrics a company utilises need to be applicable to the specific company to enable effective analysis and strategy planning to enable the company to benefit. Potential metrics a company can utilise moves beyond the dollars and cents of a company and can be classified into these main categories:

  • financial metrics
  • behavioral metrics
  • memory metrics
  • physical ability metrics
  • marketing activity metrics
  • customer profile metrics.

With the evolution of IT the development of computerised marketing dashboards has increased. In previous years companies compared metrics and outcomes manually but in recent times the development of dashboards has flooded the marketplace. A dashboard enables a company to develop what metrics it chooses to illustrate, demonstrate and visualise in an attempt to analyse the company and highlight areas needing improvement.

According to Lavinsky (2103) ,the 2 main issues when developing a dashboard for a company are recognising what metrics to track and building an appropriate dashboard. Iacobucci (2014) suggests measures that include:

  • “Financial :Sales, profits
  • Marketing:Share, customer satisfaction, average prices charges
  • HR: Employee Satisfaction, low turnover
  • Operations: Lean, mean, green, customer pleasing machine”

So clearly the development of a dashboard has significant investment and given the those in charge of companies want to maximise profit and minimise overheads what is the benefit of dashboards?

It is possible to apply a dashboard to any company. Currently, a state government has developed a dashboard so not only the management can analyse metrics of the organisation but the entire community can also analyse the organisation to determine if they want to “buy” into it – or actually attend the service.

http://www.sahealth.sa.gov.au/wps/wcm/connect/public+content/sa+health+internet/about+us/our+performance/our+hospital+dashboards/about+the+ed+dashboard/emergency+department+dashboard

The SA health dashboard gives customers an up to date profile on the public emergency departments within metropolitan Adelaide. It enables customers / patients to identify what KPI is important to them, if a bed is important, if a wait in emergency is important, if they require mental health versus surgical intervention. This dashboard enables executives of SA health to identify which department is under the most pressure at a specific time, if it is cyclic or it is specific to one hospital.

The dashboard also could be seen to have negative elements – when the emergency departments are in crisis or at capacity, consumers may be discouraged to attend, the effectiveness of a department are available for all to see – which may attract negative attention from social media, political opinions and also detrimental or negative media attention.

Levinski (2013) outlines 5 benefits of dashboards – all of which the SA health achieves these include:

  • Visibility- the dashboard gives insight and everyone is aware of the current aspects of the emergency departments
  • Ongoing Improvements – enables executives to constantly measure performance and as defined previously ‘you cant manage what you can’ measure’
  • Time saving – it is automated and up to date and in real time
  • Judge performance against your plan – SA health have specific emergency KPI’s, some of which are highlighted on the dashboard enabling consumers and executives to measure performance
  • Employee performance improvements – when employees can see their performance and are aware others can see their performance they will attempt to meet the KPI’s and various goals set

Overall, marketing metrics are vital for companies to recognise their performance but also provide a starting point for more advance analysis of a company and its performance.

 

 

Reference List

Iacobucci, D (2014) MM4 – student edition

Levinski, D (2013) http://www.forbes.com/sites/davelavinsky/2013/09/06/executive-dashboards-what-they-are-why-every-business-needs-one/#5ad4b1b27568

http://www.sahealth.sa.gov.au/wps/wcm/connect/public+content/sa+health+internet/about+us/our+performance/our+hospital+dashboards/about+the+ed+dashboard/emergency+department+dashboard

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