“If you can measure it, you can manage it”. This idea could define by itself what marketing metrics is. The challenge, of course, is to know what to measure and exactly how to do it.
Marketing traditionally has been the least measurable area in many companies, despite of being the pivot function of successful companies. This has changed with marketing metrics. Marketing Metrics is closely related to productivity and return on investment. Paul W. Farris define metrics as a measurement system that quantifies a trend, dynamic or characteristic.
Marketing metrics implies a model which fit a particular goal, measurements and control of the outcomes. A basic premise of marketing metrics is that a model-building process improves decisions. Marketing metrics is not a term that implies only online marketing activities, such as search engine, email marketing or affiliate marketing. Even though online marketing can generate extra data, marketing metrics can be applied to any kind of marketing activity.
Marketing metrics is also known as “Marketing Performance Measurement and management“ and “Marketing Engineering”.
The best way to understand marketing metrics is to take a look at a model, for that reason next week I will start explaining a simple model and then continue with some more complex models.
I am sure you will enjoy metrics as I do.