A lot of time and effort goes into creating marketing campaigns. You need to plan your strategy, make the necessary preparations, use the right tools and execute your plan. And it does not stop there. Marketing is an ongoing process, so you will need to create and run many campaigns over time.
With all the effort and resources put into your marketing campaigns to ensure success, nothing is more disappointing than not being able to make sense of your results or finding out that they failed to bring you closer. of your business goals. To avoid this disappointment, you need to start measuring your marketing performance. This article shares tips and strategies on how to do just that.
Always set goals
Before you can track and measure your marketing performance, you need to establish your goals. This way you can properly measure your progress and help you understand whether or not you have achieved the desired results. It also helps you identify areas for long-term improvement.
Don’t set general or vague goals. Instead, you should create goals with these five characteristics:
So instead of ‘increased traffic‘ as a goal, a SMART goal would be something like ‘double website traffic over the next three months using SEO’. Depending on your business and the type of marketing you use, you may want to set different SMART goals.
Choose your marketing indicators
There are many key performance indicators (KPIs) that you can use for your marketing performance analysis. However, the right Key marketing KPIs can help you quantify the progress of your set goals.
That said, the most commonly tracked and measured KPIs include:
This metric measures how cost-effective your marketing campaigns are in generating new leads. To calculate this metric, you need to factor in the cost of marketing, software and tools, and other things that help generate a lead.
- Return on investment (ROI)
Your marketing ROI allows you to calculate the amount of revenue generated by a particular marketing campaign compared to the costs of executing it. This is considered the most important KPI you need to monitor and evaluate, as it reveals how rewarding your campaign has been.
This KPI tells you how much revenue you can expect over the average lifetime of a customer. In short, it shows you how much a customer is worth to your business. This KPI is all the more important since acquiring new customers costs money. If you can generate revenue from existing customers, your CPL should go down and your marketing dollars can be spent on higher quality, loyal leads.
- Customer acquisition cost
This metric measures the amount of money you spend to convert a potential prospect into a customer. It helps businesses decide how much money they can spend to attract customers.
This is the percentage of web visitors who took a desired action, which can range from simply signing up for a newsletter to purchasing a product. This KPI can help you understand how successful your strategies are in attracting leads.
Use the right tools
One of the biggest advantages of digital marketing is that it’s easier to measure than traditional advertising. Traditional advertising methods, such as flyers or magazine ads, are difficult to follow. You don’t know who saw your ad and if it contributed to your goals. Unless you ask every customer who walks into your store, you’ll never know if your marketing methods are really working.
With digital marketing, you can use advanced and automated tools to easily access detailed and accurate data on the performance of your campaigns. And, you have plenty of options, from Google Analytics and Google Search Console to third-party marketing analytics tools.
Additionally, the marketing software and tools you currently use probably already have an analytics feature that allows you to track and measure your marketing efforts.
That said, if you use different tools for different teams to track your marketing campaign, you need to consolidate your marketing data in one place. Breaking down silos between departments is important to improve data accuracy and provide you with a holistic view of your marketing performance.
Measuring marketing performance is not easy. However, without an objective measurement of your marketing performance, you don’t know what is working and what is not.
Mastering your analytics has never been more important than it is today. It has evolved from simply better understanding your marketing results into an effective tool that shapes your marketing strategy and impacts your business results.