I need support with this Marketing question so I can learn better.
In a reply to a fellow student, please respond using the following prompt with APA format:
Do you agree with their analysis of the metrics and their importance? Why or why not? How else could these metrics be used? (Must be 300 words
Response to the below-
Metrics in Marketing
Suppose you were to perform an organic search for the term metrics. In that case, you’d undoubtedly find several definitions along with listicles of “the top” ones. Kotler and Keller (2016) define marketing metrics as a means to “track actual outcomes of marketing programs to see whether the company is moving forward toward its objectives.” For me, metrics are how you’ll keep track of your goals – and that’s precisely what makes them important.
Larson and Draper (2020) find that the importance of metrics depends on a website’s business model. For instance, a retail website would see the following metrics as the three most important for its digital marketing activities: conversion rate, average order value, and revenue per session. These metrics would be ideal for reporting on in a marketing dashboard since they are all key performance indicators (KPIs) to a retailer’s primary goal: increase revenue. Thibeault (2020) commented:
Marketing dashboards can be a great way to surface the data that helps align teams around revenue goals.
The conversion rate indicates how many website visitors complete a transaction out of the total number of visitors. Seeing how well your site is leading to conversions is indicative of ensuring you’re reaching your goals. Monitoring this metric can also prove invaluable as Larson and Draper (2020) point out a sudden decrease in a site’s conversion rate might be due to website malfunctions. In such instances remedying would occur faster than had this KPI not been monitored.
By reviewing the average order value, the sales and marketing teams could collaborate on new promotions to increase these results. General examples of such promotions are the buy one get one (BOGO) deals and even free shipping after a set price point. Increasing the average order value would even be a way to help offset any damage a low conversion rate could be causing.
Revenue per session is a metric that needs to be monitored closely by marketing as the department’s budget hinges on it. Larson and Draper (2020) note:
This is a key metric that every retail site should follow. The revenue per session is calculated as revenue/sessions. This metric is important because it determines how much a company can spend on advertising to attract users to its site profitably.
Without metrics such as these examples, a company would be “flying blind” with their marketing efforts.
Kotler, P., & Keller, L. (2016). A Framework for Marketing Management (6th ed.) [Kindle DX version]. Retrieved from Amazon.com
Larson, J., & Draper, S. (2020). Digital Marketing Essentials. Edify Publishing.
Thibeault, L. The social media channels explained[Video]. Hubspot. https://app.hubspot.com/academy/8022426/tracks/23/204/1091