An interesting phenomenon has emerged over recent years in financial accounting which could prove relevant to marketing. This is non-GAAP reporting by companies. What is, could be, the relatonshp between marketing and Non-GAAP disclosures. GAAP: Generally Accepted Accounting Principles The rules of external financial reporting, Generally Accepted Accounting Principles, are known as GAAP. Non-GAAP reporting…
Search Results for: metrics
Capturing Budget with Excess Share of Voice
Now for a metric not yet in our Marketing Metrics book. I’m hoping that writing this means reading this blog post plus buying our book will give you every metric you could ever need. The metric I’m looking at here is excess share of voice. Excess Share Of Voice Today’s metric is Excess Share of…
Understanding What Companies Are Spending On Marketing. SG&A Isn’t Great.
I often discuss marketing assets. Specifically, I worry about that the way marketing assets are accounted for in financial reports. This does not help us understand marketing effectiveness. For example, see here and here and here. This results of financial accounting choices creat a significant problem in understanding what marketing does. It means we can’t…
Management Accounting and Customer Recording
At least one area of marketing metrics makes me positive. The future is bright. The area is what we might call management accounting and customer recording. This tends to work best where there are contractual relationships. With contracts or, at least, stable long term connections, we can go a long way to understanding the value…
RFM: Recency, Frequency, Monetary
Database marketing has evolved over the years. Nowadays I would say that CLV (customer lifetime value) has surpassed RFM. CLV is certainly more often recommended by academics (including me) nowadays. (CLV certainly works best with predictable payments. It is a bit more challenging to know how to rank customers with less predictable payments patterns). An…
What Is CLV For? Knowing Helps Decisions About CLV
Customer Lifetime Value is an important metric and it has potential to be valuable in running a wide range of companies. One thing that is useful with any approach is to say what is it for? So what is CLV for? This seems like too simple a question to be valuable but often that isn’t…
Bibliometric Citation Analysis and Understanding Brand Relationships
Bibliometric citation analysis is an interesting way to study a field. It is more objective than a traditional literature review type analysis. Through citations we can see what papers were especially influential in the field. There is a, not outrageous, assumption. Namely that more influential papers are cited more. It is particularly appropriate for fields…
Upselling, Cross-selling and Reliable Data
There are two themes to today’s post. One is the difference between upsell and cross-sell. The other theme considers citations supporting claims. Upsell And Cross-sell Alex Turnbull in a blog post defends the value of upselling. He differentiates between upselling and cross-selling. (Before choosing to lump them together for the rest of the blog). Defining…
Net Promoter, Do You Really Recommend?
I have mixed feelings about NPS (Net Promoter Score). It is rare for a marketing metric to be quite so successful. As such, I have got to admire how professionally it has been promoted. That said, it is hard to avoid the conclusion that it is over-hyped. It certainly isn’t the one number you need…
The Politics of Accounting
Tony Tollington’s book on Brand Assets is fascinating. (Accounting rules have changed a bit since he wrote it. The acronyms and rule numbers aren’t what are used nowadays but the ideas are similar). He makes fascinating notes on the politics of accounting. The Politics Of Accounting For Intangible Assets Tollington notes the problems with the…