Five essential non-commercial metrics (Brand awareness, Test-Drive, Churn, CSAT, Take-Rate) that will help your business
The book “Data-Driven Marketing: The 15 Metrics Everyone in Marketing Should Know” by Mark Jeffery includes the 15 key metrics for marketers to analyze their marketing results. Here we include the Five essential non-commercial metrics (brand awareness, test-drive, churn, CSAT, and take rate).
Branding is all about customer’s perception.
A strong brand awareness drives initial preference in a purchasing decision. A business has a stronger branding can have a higher price than those competitors who have no branded products or services.
An approach to measure brand awareness is to use surveys to ask how much more a person will be willing to pay for a branded versus the equivalent non-branded product. Additionally, use brand survey and ask questions to see which specific media is creating a brand impact.
B2B and B2C marketing are similar from a brand measure perspective. The branding goal in B2B is to change customer awareness toward a product or service that may not be obvious to the consumer. Have you seen the signs “Intel inside” on your PC or laptop? This is a way that revolutionized the PC industry.
Questions for you to measure brand awareness:
- For XYZ product, what’s the first company/product name you think of?
- For XZY product, what other companies have you heard of?
Test-drive= customer pretest of a product or service prior to purchase
The example includes tracking the elements in the campaign, including SMS texting number or special URL. You can also measure conversion rate to sales and track the number of weekly generated leads.
This is the essential loyalty metric. Churn is a % of the existing customers who chose not to do business with you, often calculated on an annual basis. For example, if you have a customer churn on 20% a year, and you have 100 existing customers, at the end of the year you will have only 80 customers.
Reducing customer churn can have a profound impact on firm profitability. One example is Lexus in the auto industry has incredibly loyal customers by their loyalty marketing strategies, such as free loaner car, free car washes, free subscription of the Lexus lifestyle magazine etc. You can measure churn through churn from repeat purchases or monitoring the fraction of customers who stop doing business with you in a time period.
Customer Satisfaction: CSAT
How likely would you be to recommend XYZ product/company to a friend or colleague?
A leading indicator of future sales and can be measured by: “Would you recommend?” If the customer like your product, they will be excited about your product or services that they will recommend to friends and colleagues.
In other words, they will become your marketing department everywhere. Therefore, this is a golden marketing metric that links branding to customer loyalty. CSAT should be actively managed just like sales revenues. You can start by doing surveys in specific segments or for specific product and service you offer.
Take rate is the % of customers who accept an offer. It is the number of accepted offers divided by the number of contacts.
Take rate is the essential marketing operational metric. Increasing take rate and reducing customer acquisition costs can dramatically improve the cost side of marketing. The example of take-rate is if you send out a demand generation marketing offer with 1000 direct mail and 50 people accept the offer, then the take rate is 5%.
Remember, high-performance firms spend more on branding, customer equity & technology and spend less money on demand generation marketing. This five essential nonfinancial metrics is a framework for you to develop your marketing strategy. However, you don’t need to plan it 100% before you start.
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