Market Metrics: The Strategy Feedback Loop

James Lappeman


In Chapter 1, we introduced the importance of tracking the impact of the tactical implementation of marketing strategy in a feedback loop that informs further diagnosis, strategy and tactics. In this chapter, we explore this feedback in the form of market metrics. These metrics are used by organisations to measure consumer behaviour and the effectiveness of the marketing strategy. It is imperative for market research teams to be able to measure and track performance in order to improve strategic decision-making.

Metrics are generally quantitative ways of assessing and tracking performance or production in an organisation or department. With numerous market metrics tools available, market research teams must be able to select the metrics that reflect the most accurate results of the team's marketing efforts.[1] For instance, the metrics used when launching a new product are different from those used to track the performance of existing products. In this chapter, we will explore the role of market metrics and the different types of market metrics available to track and measure marketing efforts. Note that the metrics discussed in this chapter are not exhaustive. Metrics are often unique to the needs of a business or the objectives of an organisation; it is up to the marketing teams within organisations to choose metrics that best measure the performance of their marketing activities.

The role of market metrics

The design and implementation of marketing plans can contribute significantly to the success of an organisation. However, in order to determine whether marketing plans have been executed appropriately, the marketing performance of an organisation has to be reviewed. The process of reviewing marketing performance involves evaluation and control.[2] Control is the ongoing measurement of the output of marketing campaigns and evaluation involves periodic measurement of the campaigns. Corrective action is usually taken after the control process to enable the accomplishment of marketing objectives.

The four types of marketing controls that are implemented are:[3]

It is important to note that the measurement of performance of marketing programmes is one of the key activities of evaluation and control. Therefore, organisations need to develop a set of vital metrics in order to monitor the performance of their marketing activities more frequently, thereby making the control function more effective. For this reason, metric development is crucial for guiding an organisation on its planned marketing activities path.

Types of metrics

Market metrics can be grouped into many categories, including the following:[4]

Often, however, the metrics are grouped according to what they measure, and thus what you can use them for sales, marketing effectiveness, market share, consumer value, consumer perception, and consumer retention. Note that the grouping of metrics is not prescriptive; it is just a way to help you decide on a metric for any particular problem.

The following subsections explore some of the key market metrics used in organisations in these categories.


These metrics relate to the revenue produced by a product or service and the value derived from activities relating to sales. They are useful when you need to understand how a product or service's income has been affected by any changes or initiatives, and how effective these activities are.

Marketing effectiveness

These metrics focus on measuring how effective the brand's marketing efforts are. They are therefore useful in determining how valuable it is to pursue new or existing marketing campaigns.

Market share

The metrics in this group relate to determining the share of the market that the brand or product currently has. These can be used when trying to understand a brand's position and growth in the market compared to its competitors, or the performance of a particular product in a particular market segment.

Consumer value

These metrics relate to the monetary value that consumers represent to the business.

Consumer perception

These metrics relate to how consumers perceive a brand or particular attributes of a brand.

Consumer retention

These metrics relate to whether consumers are continuing to support the brand. This is helpful for determining whether retention strategies are working, or for measuring consumer loyalty.


In this chapter, we discussed some of the market metrics available to businesses, including market share, return on marketing investment, and consumer satisfaction, among others. Each of these metrics serves a unique purpose and is calculated using a specific formula or method. It is vital that market research teams fully understand market metrics and how to apply them in order to effectively solve different business problems and diagnose further strategy. A good balance between long and short term measurement is crucial as long term profitability takes both long term brand building and short term promotional activity. Both will need different measures and should have different timeframes.[9]


Much of the work on this chapter was assisted by the GetSmarter and 2U team that assisted on UCT's 'Market Research, Consumer Insights, and Competitor Analysis online short course.' The authors and editors are very grateful for their assistance.