Marketing and SalesMarketing Analytics

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1. Market Share Metrics
2. Key Concepts: Market share is one of the most critical measures of market competitiveness. The book breaks these metrics down into several types, including overall market share, served market share, and relative market share.
3. Example: If a company holds 30% of the total market for smartphones, analyzing shifts in market share can help understand competitive dynamics.

4. Actionable Step: Regularly track and compare not only total market share but also relative market share to see how you are performing against your closest competitors.

5. Customer Metrics

6. Key Concepts: Metrics such as customer retention, acquisition cost, and lifetime value (LTV) are crucial for understanding long-term profitability.
7. Example: The cost of acquiring a new customer can be $100, but if the LTV is $500, the acquisition is justified.
8. Actionable Step: Calculate the LTV for different customer segments and adjust your marketing spend to focus on the highest value segments.

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1. Incremental Sales and Cannibalization
2. Key Concepts: Evaluating the impact of a new product launch not just on its sales but also how it affects the sales of existing products.
3. Example: If a new shampoo variant boosts overall sales by $1M but causes a $200k drop in the sales of an existing variant, the net incremental sales are $800k.

4. Actionable Step: Conduct pre-and post-launch sales analysis to quantify cannibalization effects and adjust the product portfolio accordingly.

5. Brand Equity Metrics

6. Key Concepts: Measuring brand equity through brand recall, recognition, and perceived quality.
7. Example: A brand conducting surveys finds a 50% unaided brand recall, suggesting strong brand equity.
8. Actionable Step: Implement regular brand equity studies and use the results to reinforce strengths or address weaknesses in brand perception.

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1. Price Elasticity of Demand
2. Key Concepts: Understanding how sensitive customers are to price changes.
3. Example: If a 1% price increase leads to a 2% drop in sales, the price elasticity is -2.

4. Actionable Step: Use historical data to calculate price elasticity and fine-tune pricing strategies to maximize revenue without significantly impacting volume.

5. Optimal Pricing Models

6. Key Concepts: Balancing the demand curve with cost structures to find the optimal pricing point.
7. Example: Using conjoint analysis to determine the maximum price customers are willing to pay for new features.
8. Actionable Step: Implement conjoint analysis in your market research to determine price points for new products.

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1. Advertising Effectiveness
2. Key Concepts: Evaluating metrics like reach, frequency, and Gross Rating Points (GRP).
3. Example: An ad campaign with 80% reach and a frequency of 3 means consumers, on average, see the ad three times.

4. Actionable Step: Optimize media buys to achieve a balance between high reach and appropriate frequency for target demographics.

5. Sales Promotion Metrics

6. Key Concepts: Assessing metrics like redemption rate and lift rate to measure the success of promotional campaigns.
7. Example: If a coupon has a redemption rate of 5% and leads to a 20% increase in sales, the promotion is effective.
8. Actionable Step: Track redemption and lift rates for all promotions and use A/B testing to refine future efforts.

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1. Website Analytics
2. Key Concepts: Metrics include traffic, bounce rate, conversion rate, and customer journey.
3. Example: A landing page with a conversion rate of 10% from 100k visitors results in 10k conversions.

4. Actionable Step: Implement Google Analytics to continuously monitor and optimize key website performance metrics.

5. Social Media Metrics

6. Key Concepts: Engagement metrics like likes, shares, comments, and sentiment analysis.
7. Example: A social media post with 1k likes, 500 shares, and 200 comments indicates high engagement.
8. Actionable Step: Use tools like Hootsuite or Sprout Social to track engagement metrics and tailor content strategies based on data.

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1. Net Promoter Score (NPS)
2. Key Concepts: NPS measures customer loyalty and satisfaction by asking how likely customers are to recommend the brand.
3. Example: An NPS score of 70 indicates a high level of customer satisfaction.

4. Actionable Step: Regularly survey customers and use the NPS score to identify and address pain points.

5. Customer Satisfaction Index (CSI)

6. Key Concepts: Collecting and analyzing feedback through customer surveys to create a satisfaction index.
7. Example: An airline could use CSI to evaluate service quality, with scores above 80 indicating high satisfaction.
8. Actionable Step: Conduct quarterly CSI surveys to monitor satisfaction trends and guide improvement initiatives.

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1. Return on Marketing Investment (ROMI)
2. Key Concepts: Evaluating the profitability of marketing activities.
3. Example: A campaign costing $100k generates sales of $300k, resulting in an ROMI of 200%.

4. Actionable Step: Calculate ROMI for every major campaign to ensure efficient allocation of marketing budgets.

5. Customer Profitability and Lifetime Value

6. Key Concepts: Going beyond revenue to understand the net profit per customer.
7. Example: A customer bringing $500 in revenue but costing $150 results in a net profit of $350.
8. Actionable Step: Segment customers based on profitability and prioritize marketing efforts on the most lucrative segments.

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Marketing and SalesMarketing Analytics