Database Reference
In-Depth Information
table 15.1
Brand and Customer Level Metrics
Metric
Definition
Use of Metric
Market share
The percentage of a firm's sales to the sales of all
firms in a given market
Brand-level
Sales growth
The increase or decrease in sales volume or sale
value in a given period compared to that in the
previous period
Brand-level
Acquisition rate
The proportion of prospects converted to
customers
Brand-level
Acquisition cost
The acquisition spending of a focal firm per
prospect acquired
Brand-level and
customer-level
Retention rate
The average likelihood that a customer
makes a
repurchase
from the focal firm in period
t
, given
that this customer has purchased in the last
period
t
− 1
Brand-level and
customer-level
Defection rate
The average likelihood that a customer
defects
from the focal firm in period
t
, given that this
customer has purchased in the last period
t
− 1
Brand-level and
customer-level
Survival rate
The ratio of customers who continue to remain as
customers (survive) until a period
t
from the
beginning of observing these customers
Brand-level
Average lifetime
duration
The average duration customers continue to
remain as customers
Brand-level
P-active
The probability of a customer making a
repurchase (being active) in a given period
Customer-level
Win-back rate
The ratio of acquisition of customers who had
been lost in an earlier period
Brand-level
Share-of-wallet
The ratio of total sales of all customers of the
focal firm in a product category to the total
spending of those customers in the product
category across all different firms
Brand-level and
customer-level
Size of wallet
The total spending of a customer on a product
category across all different firms
Customer-level
Share of
category
requirement
The ratio of the sales volumes of a particular
product category of the focal firm or brand to the
total sales volumes of the product category in the
market
Also considered the market share of a firm or a
brand with respect to a particular product
category
Brand-level and
customer-level
(
Continued
)
