What could be more central to business than profits? For-profit businesses have a goal to make profits by definition. As such, you might think that we all had a pretty good shared idea of what profit is. Of course, you would be wrong. Profit measurement is surprising open to interpretation. You can often choose your…
Search Results for: metrics
Brand Valuation: Progress But Lots More Needed
Brand valuation is a challenging subject. There isn’t a single formula I can give but it is an extremely important topic for marketers to understand. Hence it gets its own popular marketing metrics page. Brand Matters Brands clearly matter in marketing. There are any number of marketing sites that will explain this. Indeed, that is…
Market Share: Always An Indicator Never A Target
A Popular Performance Metric But Why? Market share is a very widely used metric. It is often referred to as a specifically marketing metric because people in finance often don’t use it as much. It is simple to create. One can use the units you sell and compare that to unit sales in the entire…
Tobin’s Q: Why Academics Should Listen To Managers
Has A Manager Ever Used Tobin’s Q? Ask an academic where they know Neil Bendle from and they might cite my work arguing that Accounting-based Approximations of Tobin’s q (AATQ) should never be used as a performance metric. (I don’t mean to imply that I think that I’m properly famous in the sense that normal…
Stockpiling in Loyalty Programs
For several reasons I have spent a lot of time in the last few months thinking about loyalty points. There is one puzzle that has been noted by a number of scholars and practitioners. People often keep hold of their loyalty points; not using them when they could have used them to save money. A…
Measuring Competition With The Bendle Panda Index
Marketing Metrics And Understanding Markets Most metrics we discuss are related to the firm, or even the individual consumer. At some point in strategy discussions, however, a marketer will want to know what the market in general is like. Is this a very competitive market or not? How do we measure that? I have developed…
What Can The Marketing-Finance Interface Tell Us About Witchcraft Trials?
Edeling, Srinivasan, and Hanssens have a useful new review paper on the Marketing-Finance Interface. The Value Of Review Papers Review papers, such as this, play a vital role in helping frame the field. They give Ph.D. students a way to get up to speed on prior contributions. Review papers also give more seasoned academics a…
Net Promoter Score: Sadly Not As Magical As Supporters Suggest
The Net Promoter Score is a strange metric. It has broken through in ways that no other marketing metric that I can think of has. It is a very popular recommendation metric. But recommendations are complex. Looking at the photo you can ask whether I would recommend summer holidays in Atlantic Canada? Maybe we need…
How To Use, And Misuse, Customer Lifetime Value (CLV)
Or, You Could Do It That Way But Why Would You Do That? Customer Lifetime Value (CLV) is a very useful metric. (Technically, prediction/estimate I guess). It is the dollar value of a customer relationship, based on the present value of the projected future cash flows from the customer relationship. That said, it has to be…
Is ROI The Most Abused Term In Marketing?
Return on investment (ROI) is a good thing. It conjures up all sorts of positive connotations. As such it is understandable that marketers want to use the term. The challenge is that often it is used in a ‘motherhood and apple pie’ sort of way. If you can point to something good then you call…