Most companies recognize the need for marketing metrics and the potential benefit they provide, but they struggle to get started. A 2010 survey of 400 companies found that 75 percent recognized the need for marketing metrics, but only 25 percent had implemented a marketing metrics program.
A survey of CEOs conducted by Booz-Allen Consulting showed that CEO's top concern about marketing was their lack of performance metrics, as shown in the figure to the right. The marketing function needs marketing metrics to demonstrate its performance as well as take a more responsible role in managing profits and profitable growth.
Marketing analytics are tools used to measure marketing performance, while marketing metrics are the resulting measures of performance. Metrics and analytics are a big part of our lives.
|analytics||metrics||what metrics tell us that is important|
|Normal body temperature
Normal diastolic/systolic blood pressure
Pulse rate is normal for my age and health
|Only 25 percent of gas left in the car
8 miles per hour over the posted speed limit of 55
Tire pressure at the recommended level.
Market Dev. Index
|Only 40% of the market potential has been developed
Losing 33% of our customers each year
$1.50 marketing profit per $1 marketing & sales exp.