MARKETING PRODUCTIVITY METRICS AND BUSINESS PERFORMANCE: A STUDY OF SELECTED FASHION BRANDS IN LAGOS STATE

Abstract

Marketing productivity metrics have become increasingly important for evaluating the effectiveness of marketing activities and their contribution to organisational performance. However, empirical evidence on their combined influence on business performance within the Nigerian fashion industry remains limited. This study examined the effect of marketing productivity metrics on the business performance of selected fashion brands in Lagos State, Nigeria. Specifically, it investigated the influence of Brand Advocacy Ratio (BAR), Purchase Action Ratio (PAR), Return on Marketing Investment (ROMI), and Customer Retention Rate (CRR) on financial, market, and non-financial performance. The study adopted a positivist philosophy and a quantitative cross-sectional survey design. Data were collected from 200 owners, managers, and marketing personnel of selected fashion brands using a structured questionnaire. Descriptive statistics and Partial Least Squares Structural Equation Modelling (PLS-SEM) were employed for data analysis. The findings revealed that BAR, PAR, ROMI, and CRR each had a positive and statistically significant effect on business performance. Customer Retention Rate emerged as the strongest predictor, while Brand Advocacy Ratio had the greatest influence on non-financial performance and Purchase Action Ratio exerted the strongest effect on financial performance. The study concludes that marketing productivity metrics are critical drivers of business performance. It recommends that fashion brands prioritise customer retention, strengthen customer advocacy, improve conversion effectiveness, and regularly evaluate marketing investments to achieve sustainable growth and competitive advantage.