Marketing Metrics: The Definitive Guide to Measuring Marketing Performance

The ratio of the total number of customers at the end of the period to the number of customers at the beginning of the period is not a retention rate.

For any specific period, the firm needs to know the total amount it spent on customer acquisition and the number of new customers that resulted from that spending. With respect to customer retention, the firm needs to measure the total amount spent during the period attempting to retain the customers in existence at the start of the period and the

If we are uncertain about the 0.012 acquisition rate, we might ask what the acquisition rate from the prospecting campaign must be in order for it to be economically successful. We can get that number using Excel’s goal seek function to find the acquisition rate that sets PLV to zero. Or we can use a little algebra and substitute $0 in for PLV and

“some customers are more equal than others.”

Market share is an indicator of how well a firm is doing against its competitors.

For managers, the question is “Does it make a difference whether I use the infinite time horizon or (for example) the five-year customer value?” The answer to this question is yes, sometimes, it can make a difference because the value over five years can be less than 70% of the value over an infinite horizon (see Table 5.3

mastery of data-based marketing will become a means for many of our readers to differentiate and position themselves for career advancement

At Google, we have a saying we use quite frequently: “Data beats opinion.” In practice, this means that for any endeavor, we first determine our key success metrics and then measure how we are doing against them on a regular basis.

managers can develop a program that mixes both short- and long-term incentives. They can link some rewards to a simple, short-term metric, such as calls per week, and others to a more complex, long-term target, such as market share achieved in a year.