Kendall's Tau

Non-parametric rank correlation. A working definition from the RGM marketing glossary.

Schematic — Kendall's Tau

Non-parametric rank correlation.

Common mistakes

Here is the short version.Teams slip on Kendall's Tau in four familiar ways. Each makes a soft assumption look like a precise number.

One blanket rule. Applying Kendall's Tau the same way everywhere. Split it by audience, channel, and business model.
No context. Reporting Kendall's Tau with no baseline. A bare number cannot be judged.
Chasing the word. Optimizing Kendall's Tau for its own sake. Check it tracks a real outcome.
Apples to oranges. Comparing Kendall's Tau across firms raw. Adjust for pricing and cycle before you read it.

What does Kendall's Tau mean?

Non-parametric rank correlation. Agree the scope of Kendall's Tau before the planning starts.

Why does Kendall's Tau matter for marketers?

Kendall's Tau matters because vague vocabulary breaks strategy. A precise, shared definition keeps a team aligned.

Where does Kendall's Tau get used?

Kendall's Tau informs a decision -- most often a budget, a metric choice, or a comparison. The Netflix example above shows the pattern.

What is the most common mistake with Kendall's Tau?

Using Kendall's Tau flat across every segment and showing it without context. Both make a guess look exact.

What does Kendall's Tau mean?: Non-parametric rank correlation. Agree the scope of Kendall's Tau before the planning starts.
Why does Kendall's Tau matter for marketers?: Kendall's Tau matters because vague vocabulary breaks strategy. A precise, shared definition keeps a team aligned.
Where does Kendall's Tau get used?: Kendall's Tau informs a decision -- most often a budget, a metric choice, or a comparison. The Netflix example above shows the pattern.