Don Sexton is Professor of Marketing and of Decisions, Risk, and Operations at Columbia University. He’s also a presenter at the Marketing Analytics & Data Science Conference on June 8-10, 2016 in San Francisco, California.
Don Sexton: CSF (Customer Surplus Factor) is the ratio of a customer’s willingness to pay to the price being charged. The higher that ratio, the more likely the customer is to make the purchase.
DS: A KPI is a Key Performance Indicator. Managers use KPIs to monitor their ongoing business situation. KPIs should consist of both lagging indicators (which show where you’ve been) and leading indicators (which show where you’re heading).
DS: CSF is used to provide insights for strategy in both short-run and long-run competitive situations. Traditional techniques such as marketing mix modeling primarily focus on resource allocation over the next year.
DS: CSF should be monitored frequently ‘ quarterly or semi-annually ‘ to provide managers with steering control, the ability to set clear objectives and to forecast results of marketing actions before they are implemented.
DS: Managers attending this session will understand an innovative way to analyze their competitive situation, an approach well-grounded in marketing and economics and proven to work by several companies, which clearly links marketing actions to financial outcomes and which is relatively easy to put into practice.
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Peggy L. Bieniek, ABC is an Accredited Business Communicator specializing in corporate communication best practices.