In a recent HubSpot survey, 49% of respondents admitted their marketing strategy is not effective based on the alignment between marketing and sales. By understanding how your business can measure and improve its marketing effectiveness, your marketing and sales can work simultaneously to boost activity.
Measuring the results of marketing activity is important to show the impact on business revenue and sales pipeline, it also determines the return on investment (ROI) on specific marketing activities. Ultimately, all marketing campaigns should be optimised based on tangible research and insights, confidently knowing what works and what doesn’t, but how can we actually achieve that?
There are 3 key questions you need to ask yourself to set a specific and measurable goal for your marketing initiatives, they are:
- What are you trying to achieve? e.g. increase leads into the business, increase brand awareness, retain existing clients, grow existing clients, launch into new markets, improve lead conversion rates… etc.
- What is the specific goal you have for this metric? What does success look like? e.g. increasing leads into the business might look like 20 new leads over a 4-week period
- What is the current state for this metric? e.g. in the last 4 weeks, how many new business leads came into the business? This then becomes our baseline to measure the impact of any additional marketing activity. Sometimes we’re venturing into new territory so there are no existing statistics available e.g. launching a new product. In this case, work backwards: How much product would you like to sell and in what time frame, how many people in your target audience do you anticipate needing to get the product in front of for a sale to happen (conversion)? What’s the consideration phase like (is this an instant purchase e.g. FMCG or a big-ticket item e.g. a car…etc)? All these questions will help to determine how you measure the success of your marketing but also what activities you should undertake and for how long your marketing needs to be in the market.
Ideally each marketing activity should be given a unique goal to truly measure its effectiveness. For example, you’re launching a new product and undertaking a letter box drop alongside Facebook ads. Each activity (letterbox drop vs. online ads) needs its own specific metric and goal in order to determine what gives you the best ROI. Online activity is relatively easy to measure in terms of impressions, reach, engagements, website clicks…etc. Offline is trickier but think if there is a way you can track its success e.g. include a promotional discount code on the letterbox drop so you can easily measure uptake.
The great news is that there are numerous ways to measure your marketing. The key is to make sure the metric you choose is relevant and will provide the data you want. In the following infographic, we have put together some examples of metrics and in what scenario you could apply them.
Not sure if you’re effectively measuring your marketing? We’re here to help. Contact us to have a chat on (03) 5975 3742 or drop us a line at firstname.lastname@example.org.