Choosing the Right Metrics to Maximize Profitability and Shareholder Value

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

Research output: Contribution to journalArticle

73 Scopus citations

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.

Original languageEnglish (US)
Pages (from-to)95-111
Number of pages17
JournalJournal of Retailing
Volume85
Issue number1
DOIs
StatePublished - Mar 1 2009

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All Science Journal Classification (ASJC) codes

  • Marketing

Cite this

Petersen, J. A., McAlister, L., Reibstein, D. J., Winer, R. S., Kumar, V., & Atkinson, G. (2009). Choosing the Right Metrics to Maximize Profitability and Shareholder Value. Journal of Retailing, 85(1), 95-111. https://doi.org/10.1016/j.jretai.2008.11.004