A01 chaf6542 06 se fm indd

5 

Branding metrics. These tend to be only relevant to interactive advertising or sponsor-

ship. They are the equivalent of offline advertising metrics, i.e. brand awareness (aided 

and unaided), ad recall, brand favourability and purchase intent. Recorded using tools 

such as Dynamic Logic (

www.dynamiclogic.com

).

6 

 Lifetime‑  value‑  based ROI. Here the value of gaining the customer is not just based on 

the initial purchase, but the lifetime value (and costs) associated with the customer. This 

requires more sophisticated models which can be most readily developed for online retail-

ers and online financial services providers.

Example: A bank uses a net present value model for insurance products which looks 

at the value over 10 years but the main focus is on a 5-year result and takes into account:

● 

acquisition cost

● 

retention rates

● 

claims

● 

expenses.

This is valuable since it helps give them a realistic ‘allowable cost per sale’ from different 

communications tools which is needed to get return over 5 years.

Figure 9.8 shows an example of effectiveness measures for an online ad campaign for an 

insurance product. Here an opportunity or lead is when a quote is requested. Note that 

the cost of acquisition is high, but this does not take into account the synergies of online 

Bounce rate

Percentage of visitors 

entering a site who leave 

immediately after viewing 

one page only (known as 

‘ single‑  page  visits’).

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Chapter 9  Customer relationship management

advertising with offline campaigns, i.e. those who are influenced by the ad, but do not click 

through immediately.