Category: Marketing Metrics
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NPS And Casino Patrons
I really appreciate when academic papers seek to address issues that matter to non-academics. Sanghee Kim and Tom Gruca looked at the use of Net Promoter Score (NPS) to predict customer retention and spending a topic important to many business people. What do they find about NPS and casino patrons? Casinos And Net Promoter A…
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Understanding And Using The Customer Asset
My new book with Shane (Xin) Wang covers the use and meaning of Customer Lifetime Value (CLV). Being clear on the nature of the customer asset allows us to understand CLV. What Value Are We Looking At? The book starts with the basics. For example, what value are we looking at when we talk of…
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What Customers Are Worth
Allison Hartsoe’s book — The Age of Customer Equity — looks at customer-based strategy. She highlights examples of firms successfully using customer centric strategy. The examples are interesting and there is much to learn from the discussions. I should note that this is not an academic book. The concepts are much looser than I would…
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Market Research Lessons
Alex and Mike Sherman have a book of market research lessons. This is a nice little book of sensible ideas. I liked it and will highlight a few of the points that stood out for me. Aims Of The Research Should Impact What You Study This seems obvious, and it is really. Still, it is…
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A Roadmap For Marketing Metrics
Paul Magill and Christine Moorman shared a roadmap for marketing metrics in April’s Harvard Business Review. Their overarching aim is to elevate the way marketers look at metrics. The authors don’t want marketing assessed only at the campaign level — “did this ad campaign work?” Better to focus at higher levels, “what is marketing delivering…
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Not All Papers Must Feature Firm Performance
Today I’m discussing another paper that uses Total Q. I won’t spend too long on that. I have said plenty elsewhere about how bad Total Q is as a measure of firm performance. In this post, I want to somewhat sympathize with the authors of a paper that uses Total Q. I will tell a…
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Viewing Customers As Investments
Every now and then it is worth looking back at how earlier generations thought of marketing. (Or anything else really). There can be a lot to learn — although you often have to cope with some old-fashioned ideas and terminology. An interesting early piece is by Edward C. Bursk which was about viewing customers as…
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The ROI Of Customer Engagement
One of the biggest challenges in marketing and associated fields is measuring the ROI (Return On Investment) of an activity. Trying to find a meaningful number for the ROI of customer engagement is a Herculean task. Maybe they’ll be a prize at the end but you’ll have to clear out a lot of shit before…
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Customer Equity Statements And Financial Reporting
Think of a brilliant move in soccer. The player shows great vision, and excellent passing. There is some fantastic build up play where lots of people are involved. The movement shows amazing promise and then someone slips and blasts the ball miles away from the goal. To my mind that is where we are in…
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A New Marketing Metric, Earned Growth
Fred Reichheld brought us the Net Promoter System/Score. As such, he certainly knows how to popularize marketing metrics. He has now introduced a new marketing metric, earned growth. I need to think about it more but it seems to have some potential. Plus, the introduction seems to have avoided some of the problems of NPS…
