Assessing the Performance Metrics in Marketing (Essay Sample)

Metrics in Business
Name
Institution
Abstract
A business metric is the calculable measure for tracking and assessment of a business process condition. Metrics are very important in a business as they make the improvements goals to be objectives which are measurable. Metrics form the basis of control in an organization because the measurements can be on a daily basis. Metrics for measuring innovation includes return on investments metrics, organizational capability metrics, and leadership metrics among others. There are also marketing strategy metrics which are unique visitors, page views, inbound links, conversion rates, and bounce rates. For a company to flourish the best recommended metrics should be customer satisfaction, internal process quality, employee satisfaction, and lastly financial performance index.
Metrics in Business
A business metric is simply a calculable measure for tracking and assessing the condition of a precise business process. They are employed to tackle key audiences that are associated with the business, such as customers, investors, and even employees.
Importance of Metrics
Metrics in a business makes the improvement goals to be objective in that they can be measured in numbers. They can transform the operational performance to numbers which are comparable so the management can know whether the set standards are met. Processes are always designed according to the customers’ quality requirements so metrics can transform that to numeric that can be used to map the whole process. Metrics form the foundation of control in a business in that there measurements are on a daily basis. They can indicate whether the whole process is in order or if there should be implementation of external force (MSG, 2016).
Metrics to measure Innovation
Return on Investment Metrics
Return on investment metrics are used to address two measures that is financial returns and resource investments. The metrics give innovation management budgetary discipline and also justifies the value of planned initiatives and programs.
Organizational Capability Metrics
These metrics mostly focuses on the foundation and innovation process of an organization. It gives focus for operations meant for constructing sustainable approaches to both invention and re-invention.
Leadership Metrics
Leadership metrics undertake the behaviors exhibited by senior managers in supporting a design of innovation within the business and must include the support of distinct growth initiatives.
Percent of new ideas selected for funding
It shows the productivity of the ideas introduced to the company by the employees
Ratio of revenue or net profit
It refers to the ratio of revenue or net profit from the introduced ideas divided by the implementation average cost of an idea.
Metrics to measure marketing strategy
Marketing strategy metrics provides information on how a product is performing among consumers like how many people are happy with the content. They always include the following.
Unique visitors
It refers to a specific number of visitors that visit a website at a particular period of time and are only counted once. The number usually varies dramatically depending on the amount of content produced, and the size of the company.
Page views
It refers to the cumulative number of pages that the visitors have clicked on, at a given period of time. If the page views are more than unique visitors, it shows that the content is engaging to the audience because they are clicking on multiple pages (Kevin, 2012).
Inbound links
It is the number of all external links to the organization’s site. It indicates that the content is important to people and are linking to it. The more the inbound links, the higher the content ranks on the search engines.
Conversion rate
Conversion rate is the percentage of visitors to the site for a specific action due to the encouragement by the content such as signing up of newsletter.
Bounce rate
It refers to the number of visitors or customers who come to the site then leave without clicking on any page. If the bounce rate is low, it is an indication that people like what they find on the site.
Recommended metrics for use in a company
In running a business, one needs to understand how well it is performing, and metrics are the only management information whose implementation can judge whether an organization is doing well or not. The following are the recommended metrics to use in a business.
Customer Satisfaction
Customers are the backbone of any company without which an organization is bound to failure. Any business organization whether it is profit or nonprofit making must deliver the best of services to customers until they are satisfied. It can be measured through customer engagement and retention, and net promoter score.
Internal Process Quality
A company must make sure that its products an