Woolworths: Applying Performance Metrics to Innovation and Marketing

This essay defines performance metrics and their importance in providing critical information about organizational processes, especially in innovation and marketing. It highlights the role of metrics in control, feedback, objectivity, and overall goal improvement. The essay identifies five key metrics for measuring innovation: rate of acquisition, activation, conversion, return, and viral coefficient. Similarly, it presents five metrics for evaluating marketing strategy: unique visitors, search engine traffic, conversion rate, sales, and return on marketing investment. Finally, it recommends net sales, conversion rate, and rate of return on investment as appropriate metrics for a company like Woolworths to use.

Running head: PERFORMANCE METRICS
PERFORMANCE METRICS
Name of the Student
Name of the University
Author Note

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Introduction
Metrics can be defined as the numbers which give out critical information about a
particular process which is taking place. The metrics usually talk about the accurate
measurement of how a particular procedure is functioning and help the firm in improving its
operations. Hence, a combination of metrics needs to be used by the different organizations in
order to monitor their progress with respect to innovation and marketing activities.
Importance of the metrics
The metrics are considered to be a crucial aspect of the organization and are
recommended to be used regularly because of the following reasons:
 It assists in the control and the feedback loop: The use of metrics tends to assist the firm
and align operations. Moreover, the assist in the control and the feedback loop as well.
 It makes the process objective: According to Scott (2015), it helps in completion of the
processes and objectifying them as per the needs of the organization and the customer.
 It helps in the overall improvement of the different goals: In addition to this, the metrics
also assist in improving the overall goals of the organization. They help in transferring
the customer requirements and organizational performance.
Five metrics to measure innovation
The given metrics can be used to measure innovation in an organization:
1. Rate of acquisition: This helps in understanding whether the customers actually visit the
website or not or whether the appropriate audience is being captured or not.

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2. Rate of activation: This helps in understanding whether the audience is interested and
willing to associate with the firm or not. Can be taken to be positive if the customer
leaves an email address for communication.
3. Rate of conversion: If the potential customers have been converted to actual customers
helps in understanding whether the innovation has been successful or not (Moro, Rita &
Vala, 2016). This helps in understanding whether the customers are willing to pay for the
product or service.
4. Rate of return: The rate of return can be stated to be a crucial analytics which helps to
understand will people be back for more content or others and engage with the firm.
5. Viral coefficient: This metric associates the capability of the customers to recommend the
products of the firm or not. If they like it, they will recommend it.
Five metrics to measure marketing strategy
1. Unique visitors: This metrics helps in understanding whether any new visitors have
visited the website or not during a given period and to understand whether new visitors
have visited the firm.
2. Search engine traffic: The search engine traffic can be stated to be another performance
metric which helps to understand whether the initiatives as taken by the firm are being
successful or not or in order to understand whether, the content being displayed is
optimized in nature or not (De Mooij ,2018).
3. Conversion rate: The conversion rate gives an idea about the number
of potential customers who have become the fixed customers of the
firm at large.

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4. Sales: This helps in understanding the net sales the organization has
engaged in after the marketing campaign was carried out.
5. Return on marketing investment: This metric is another metrics which
will assist in understanding whether the investment as made in the
marketing activities has been fruitful or not.
Recommend the appropriate metrics to use for the company (Woolworths)
a) Net sales: This helps in understanding the net sales the organization has
engaged in after the marketing campaign was carried out.
b) Conversion rate: If the potential customers have been converted to actual customers helps
in understanding whether the innovation has been successful or not (Babin & Zikmund,
2015).
c) Rate of return for investment: The rate of return can be stated to be a crucial analytics
which helps to understand whether the investment being made will be returning to the
firm or not.

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References
Babin, B. J., & Zikmund, W. G. (2015). Exploring marketing research. Cengage Learning.
De Mooij, M. (2018). Global marketing and advertising: Understanding cultural paradoxes.
SAGE Publications Limited.
Moro, S., Rita, P., & Vala, B. (2016). Predicting social media performance metrics and
evaluation of the impact on brand building: A data mining approach. Journal of Business
Research, 69(9), 3341-3351.
Scott, D. M. (2015). The new rules of marketing and PR: How to use social media, online video,
mobile applications, blogs, news releases, and viral marketing to reach buyers directly.
John Wiley & Sons.