Choosing the Right Metrics to Maximize Profitability and Shareholder Value

J. Andrew Petersen, Leigh McAlister, David J. Reibstein, Russell S. Winer, V. Kumar and Geoff Atkinson

Journal of Retailing, 2009, vol. 85, issue 1, 95-111

Abstract: There is an ever-present need for managers to justify marketing expenditures to the firm. This can only be done when we can establish a direct link between marketing metrics and future customer value and firm performance. In this article, we assess the marketing literature with regard to marketing metrics. Subsequently, we develop a framework that identifies key metrics that firms should focus on that can give a firm a better picture of how they got to where they are now and insights towards how they can continue to grow into the future. We then identify several organizational challenges that need to be addressed in order for firms to build the capabilities of collecting the right data, measuring the right metrics, and linking those metrics to customer value and firm performance. Finally, we offer guidelines for future research with regard to marketing metrics to help firms establish successful marketing strategies, measure marketing effectiveness, and justify marketing expenditures to top management.

Keywords: Metrics; Customer lifetime value; Customer equity; Shareholder value; Referral behavior (search for similar items in EconPapers)
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (31)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jouret:v:85:y:2009:i:1:p:95-111

DOI: 10.1016/j.jretai.2008.11.004

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