Here is a free sample chapter of Marketing Metrics. This is a PDF of a chapter from the 2020 (4th) Edition of Marketing Metrics: The Manager’s Guide To Measuring Marketing performance. At the risk of not being modest we like to think that this is very much the definitive guide to measuring marketing performance. Want to know something about a marketing metric? Our book is where you should look.
If you need a social proof argument this is the 4th edition. Marketers clearly saw value in the first 4 editions.
What Is In The Sample Chapter Of Marketing Metrics?
The chapter is everything you want to know about Customer Profitability. We discuss understanding customer counts. This can be surprisingly fiddly and challenging. Not least consider that some firms double or triple count customers. Buy cell, cable and home phone? You might show as three customers.
We define such crucial ideas as recency, retention and the retention rate. These are the sort of metrics that a marketer needs to know to do their job. This is especially true for marketers working in subscription type businesses, e.g., cellphone service, cable, TV Streaming. These metrics are also highly relevant to firms with relatively stable customer bases that give a variety of metrics to assess customer relationships, e.g., banks and internet based businesses.
Customer Lifetime Value And Customer Profitability
The chapter includes an extensive discussion of Customer Lifetime Value (CLV). Are you using this correctly? I don’t know who is reading this but I’d guess no. This is based solely on how bad some of the advice is on CLV out there, see here.
We discuss ideas such as the infinite horizon assumption. How weird is it that formula assume some customers — to be fair usually a vanishingly small fraction — have an infinite life as customers?
The chapter also discusses Customer Profit. This being a single period view of profitability. Clearly this is great if a single period view is a good estimate of a customer’s profit. The metric’s value falls apart a bit when customers change in their profitability over time. E.g., students or customers you give inducements to get them to join but they tend to stick after this.
The chapter also contains my artistic drawing of a Whale (Curve). I think we will all look at it and agree that I should stick to doing math not art.
Download The Sample Chapter of Marketing Metrics (4th Edition)
Click below to download the PDF chapter.