Marketing Metrics: The Manager’s Guide to Measuring Marketing Performance, Third Edition

12. The Marketing Metrics X-Ray AND TESTING

12.1 The Marketing Metrics X-Ray

Our purpose in this chapter is to give some examples of how marketing metrics can augment and complement traditional financial metrics when used to assess firm and brand performance. In particular, marketing metrics can serve as leading indicators of problems, opportunities, and future financial performance. Just as x-rays (now MRIs) are designed to provide deeper views of our bodies, marketing metrics can show problems (and opportunities) that would otherwise be missed.

Put Your Money Where Your Metrics Are

Table 12.1 shows common summary financial information for two hypothetical companies, Boom and Cruise. Income statement data from five years provide the basis ...