: Characterize marketing phenomena and identify causal relationships (e.g., Predictive Models
Marketing Analytics: Strategic Models and Metrics by Stephan Sorger is a cornerstone text for professionals who want to bridge the gap between raw data and executive decision-making. If you are looking for a comprehensive guide to data-driven marketing, this resource provides the frameworks necessary to measure and optimize every stage of the customer journey. 💡 Core Strategic Models Calculating Customer Lifetime Value (CLV) and churn rates
A physical textbook is cumbersome, but a well-structured PDF allows analysts to keep Sorger’s strategic cheat sheets pinned to their desktop. | | Behavior | Abandonment Rate | (Carts
Calculating Customer Lifetime Value (CLV) and churn rates. Calculating Customer Lifetime Value (CLV) and churn rates
| Category | Metric | Formula / Definition | Strategic Value | | :--- | :--- | :--- | :--- | | | Customer Acquisition Cost (CAC) | Total Sales & Marketing Cost / New Customers | Determines sustainability of growth. | | Behavior | Conversion Rate | (Conversions / Total Visitors) x 100 | Measures funnel efficiency. | | Behavior | Abandonment Rate | (Carts initiated - Purchases) / Carts initiated | Identifies friction in checkout. | | Monetization | Average Order Value (AOV) | Total Revenue / Number of Orders | Measures upsell/cross-sell success. | | Monetization | Customer Lifetime Value (LTV) | (AOV x Purchase Frequency) x Avg Lifespan | Tells you how much to spend on CAC. | | Retention | Churn Rate | Customers Lost / Total Customers at Start | Predicts revenue erosion. | | Financial | ROMI (Return on Marketing Investment) | (Incremental Revenue - Marketing Spend) / Marketing Spend | The ultimate efficiency ratio. |
Determining how customers value different product attributes.