The paper "The Role of Metrics in Marketing in the Contemporary World" is a good example of a literature review on marketing. The role of metrics has become crucial in facilitating efficient, effective and targeted marketing in the contemporary world. As a result, it has become increasingly important for managers, marketers, and students to learn how to apply metrics in judging marketing results. Metrics has proved to be the key to success in marketing (Weissbrich, 2009, p. 8). Moreover, it encourages vigor and objectivity throughout the world of business, science, and government.
Metrics is a system that quantifies a character, a trend or dynamic. It is used in the explanation of a phenomenon, analyzing the causes, sharing findings and projecting the results of future events. Metrics also assist in the comparison of observations across time periods and regions. Consequently, it provides frameworks for efficient and effective marketing approaches. In today’ s world, there has been significant pressure on marketing executives to be accountable for their companies’ returns on investments (Roll, 2006, p. 26). As well, there has been an increase in awareness and stronger motivation among marketing executives to quantify returns derived from market campaigns.
Through the effective and efficient application of metrics, marketers are able to realize new opportunities, measure them and invest in them. For example, a marketing executive may want 10% of a company’ s current customers to reorder within 2 weeks, 20% to reorder within 2 months, and 50% to reorder within 1 year. He or she will need to create short-run metrics that will help the company to reach its long-term goals within the set timeframe (Hastings & Saperstein, 2008, p.
231). Hutt and Speh (2009, p. 449) highlight four key categories of metrics for consideration: customer metrics, strategic metrics, operational metrics, and output metrics. Strategic metrics measure the success of a company’ s strategic approach to customer relationship management. Strategic metrics is used to determine whether the laid objectives of a company focus sufficiently on the needs of the customer, the role of customer relationship management in positioning the organization in the market place and the extent to which marketing information is used when developing business strategy. Customer metrics measure the value delivered to the customer by the organization as well as the value that a customer delivers to the organization.
This helps in the measurement of customer satisfaction, customer retention, customer acquisition costs and determining the lifetime value of a customer (Baker & Hart, 2007, p. 408). Operational metrics on the other hand measure staff training, career progression, recognition, compensation, and appraisal among others (Hutt & Speh 2009, p. 449). This also involves processes such as product and service development targets and customer service levels.