Marketing metrics use in South Africa

Abstract

The marketing function has been under immense pressure to be more document it contribution to the performance of the firm, this pressure comes from shareholders seeking a return on their funds, CEO’s seeking savings and from their peers as they seek to become more relevant in the organisation. Efforts to track marketing have been hindered by among other issues a lack of numeracy by marketers, the primacy of financial measurements and a laundry list of metrics from research and practice that makes it hard to chose, few and pertinent ones. The use of marketing metrics has proven to contribute to better business performance, and during recessions when budgets are tight, it becomes even more urgent that the marketing function have and understand marketing metrics. This study aimed to evaluate the extent of marketing metrics use in South Africa, determine the levels and frequency of review, examine whether use of metrics changes due to severe economic conditions and evaluate whether the change in use of metrics contributes to better firm performance. The study found that use, review and collection of metrics is at par with other countries, but there is no change in the level and frequency of review during a recession. Evidence was found of better firm performance that is linked to the change of use of metrics.