A company should use appropriate metrics because it plays an essential role in measuring effectiveness of marketing campaign, which in turn is associated with the marketing success. Selection of an adequate metrics helps in getting useful perspective on campaign to consider and analyze if it is effectual enough to meet the goals of company. Marketing metrics, however, play a significant role, and facilitates brand managers, marketing directors, and specialists of public relations with a framework that help them to evaluate marketing performance, and also assist them in formulating marketing plans as well as marketing strategies (Farris, Bendle, Pfeifer & Reibstein, 2015).
Further, metrics provides several objectives and also serve as a yardstick for tracking progress. They help marketers in acquiring and retaining customers, and also help them in growing their value. They help in ensuring interaction with customers, and also reduce employee turnover by increasing satisfaction of employees. A company should use price metrics, promotion metrics, supply chain metrics, place metrics, selling metrics, buyer metrics, customer loyalty metrics, marketing and finance metrics. The company should not consider quantity metrics, because it leads to fixation on the quantity, and such fixation paves the way to failure of marketing efforts of the company.
There is difference between internal metrics and external metrics. Internal metrics represent metrics that are used within an organization for assuring that the things are on right track. External metrics are, however, used by others such as customers and sponsors in order to get an idea about the product or company. Internal measures adopted within the company are formative, and external measures are summative. External metrics are used in order to assess final objectives, whereas internal metrics are used for addressing objectives that pave the way to success of an organization.
References
Farris, P., Bendle, N., Pfeifer, P.E., & Reibstein, D.J. (2015). Marketing Metrics: The Manager's Guide to Measuring Marketing Performance. Pearson Education, Australia
