What are the most popular metrics used by managers worldwide to make marketing decisions? Researchers analysed more than 4000 marketing plans from over 1600 companies in 16 countries, including Australia, US, Russia, India, UK and China, to uncover the answer.
They found that ‘Satisfaction’ was the most popular metric for marketing decisions. It was the most used metric in eight of the 16 countries studied, and was employed in 53 per cent of all marketing-mix decisions analysed.
“Despite trillions spent on marketing globally, managers have said consistently over the last couple of decades that one of the most difficult activities is demonstrating the impact of their marketing actions,” says lead researcher Dr Ofer Mintz, from the University of Technology Sydney (UTS) Business School.
“We wanted to know what metrics managers are using globally, what drives metric use, including cultural influences, and how many metrics managers are using. In today’s digital technology-intensive and data-rich environment, it is important for managers to know which metrics count.”
‘Satisfaction’ measures how satisfied a company’s customers are with a company and its product or service. Along with satisfaction, the other two most popular metrics were ‘Awareness’ and ‘Return on Investment’ (ROI) to help determine marketing strategy.
‘Awareness’ measures how many people recognise a company, brand, product or service, and was used in 45 per cent of plans. This was followed by ROI, which measures revenue generated per dollar spent on marketing. Other popular metrics included Target Volume, Likeability, and Net Profit.
The study, just published in the Journal of International Business Studies, also found a significant and positive relationship between a company’s total metric use and its marketing performance, in each of the 16 countries.
“We found the greater a manager’s overall use of quantitative information or metrics when making decisions, the better the performance, accuracy, and overall quality of decisions. It also leads to greater CEO satisfaction, and increased profits and shareholder value,” says Dr Mintz.
“Metrics provide information to help managers diagnose, coordinate, and monitor their actions. They also quantify trends or outcomes, reveal current relationships, and help predict the results of future actions,” he says.
The study identified 84 different marketing and financial metrics in use, with managers employing on average around nine metrics per marketing-mix. Country and organisational culture also had an impact on the types of analytics managers used.
South Korea, China and India had the highest use of metrics, and Japan, France and the US had the lowest use. Managers residing in countries with a lower tolerance for uncertainty and ambiguity employed significantly more metrics for their marketing decisions.
Other areas of national cultural difference that had an impact on metric use included collectivism, assertiveness, power distance, and future orientation. The study also identified organisational characteristics that drove metric use, however the result was more counterintuitive.
“Rigid organisational cultures were less effective than more organic, free-flowing cultures where there was flexibility for managers to exchange ideas and choose their own metrics, rather than focusing on a strict set of instructions,” says Dr Mintz.
“It’s important for managers to understand the different drivers for metric use, both cultural and organisational. It is also useful to know what metrics other managers are using,
From reef excursions to VIP marketer dinners and big brand activations such as Samsung Haus, the eagerly anticipated Cannes in Cairns Extras have been revealed. Secure your Cannes in Cairns tickets now! Attendees at this year’s Cannes in Cairns, presented by Pinterest, are in for a treat as the extras are back — bigger and […]
If anyone is a fan of drama then we recommend you head over to the Parliament of Australia website where a heated battle is ensuing between FTA television and streaming platforms. FTA television networks including ABC, SBS, Seven, Nine, and Network 10 are appearing before the Environment and Communications Legislation Committee today, to argue that […]
Congratulations Olivia Styles, digital media specialist at Dominos for taking out the top prize in last weeks quiz! Do you have what it takes to win this week? It’s been all Taylor Swift all week but have you been paying attention to everything else? Try your luck below for your chance to win! Got 100%? […]
Pinterest has launched a new global B2B campaign, “The P is for Performance” talking up its ability to perform at both ends of the marketing funnel. “Pinterest has always been great at the upper funnel, where we reach people earlier in their purchase journeys, but the new-era Pinterest is also a lower funnel champion for […]
Everything has changed with NRMA patrol vans this weekend with roadside assistance ready to help concert goers and their getaway car. Australians heading to the Eras Tour this weekend to see Taylor Swift can feel closure knowing that fearless NRMA patrols will be at Olympic Park on their white horse to assist in style with […]
Livewire, the global gaming marketing and gametech company, has signed an exclusive deal with Discord marketing specialist Wildfire to sell its inventory on the community-driven communications platform. The partnership with Wildfire, signed in early February, enables Livewire to reach Discord’s communities of superfans and target gamers where they choose to meet and engage. The deal […]
TEAM LEWIS has achieved a new milestone in philanthropic funding. It has now supported over 1,500 community causes around the world. In the past three years, the initiative has channelled millions of pounds in cash, donated time and resources. Every year, the unique scheme incentivises colleagues to donate £1,000 of company cash to a community […]
NFL legend Travis Kelce has touched down in Sydney and has been welcomed to the team at Tooheys with a cheeky message via Thinkerbell. The NFL player made global headlines this month as part of the Kansas City Chiefs’ victory at the Super Bowl in Las Vegas. Many Aussies’ social feeds have since filled up […]
Domain’s chief marketing officer (CMO), Rebecca Darley, said that without Tealium’s customer data platform (CDP), her business would not have been able to achieve the personalised marketing success that has made it one of the leaders in data-driven marketing in Australia. Speaking at an exclusive breakfast event hosted by B&T at Sydney’s swish harbourside restaurant, […]
DDB Group Melbourne has today announced exciting changes to its creative team with the promotion of Becky Morriss to creative director and new hire Sarah Tonner as creative services & traffic manager. Lead Image: Becky Morriss & Sarah Tonner Recently celebrating her 11 years with DDB, Becky began her career as a designer, evolving into […]
Man of Many in partnership with NBC Universal, stages an atmosphere of elegance for Sydney premiere of ‘Argylle’ film. Independent lifestyle publication digital publication, Man of Many, has shown its innovative approach to event management in the premiere of ‘Argylle’ at Hoyts Cinema in Sydney’s entertainment quatre. Over 400 guests were included in the films […]
Kargo, a leading provider of full-funnel advertising solutions across mobile, desktop, and TV screens, is excited to announce the launch of CORE (Create Once, Run Everywhere) in APAC. CORE is built on creative science and empowers advertisers to easily use their creative assets across screens for seamless campaign performance at scale. A combination of creativity […]