Marketing Success: How to Measure It
There is a good chance your company has multiple marketing campaigns going at the same time, but are you taking time out for the necessary step to measure your marketing success? Paying close attention to the results your marketing is providing will help you save time and money on ads that are not effective, and do not produce the results that you are searching for. You can then reassign that portion of your budget to ads that are generating the results you are looking for, or even new campaigns you haven’t developed yet.
Measuring Your Marketing Success
When you are looking at the analytics associated with your marketing campaigns, there is a lot to take in and it may be overwhelming. What information do you need to pay attention to? Let’s take a look.
Important Factors in Determining Success
There are a lot of things you need to take into account when determining whether your marketing campaign is a success. It is important to take time to understand how each of these points is impacted by your niche and your current market. We’ll look at the 4 most important factors.
Response rates are an important aspect in determining the success of a campaign. It measures the number of people who are interested in either the visual appeal of the ad or the product itself. Even though the response rate is helpful in determining success, this metric can be misleading if it isn’t compared to other factors. In some cases, this metric can be high and produce very few conversions, or it can be very low and produce high conversions.
One of the biggest mistakes marketers make is paying too much attention to vanity metrics and ignoring conversion rates and the value of each conversion. Focusing on clicks and traffic isn’t going to provide you with a clear picture of how successful your campaign is, conversions and the value of those conversions directly relate to your profit, and combined with ROI, should be the most important factor in determining whether your campaign is a success.
Return on Investment (ROI)
One of the most important aspects to determine marketing success is Return on Investment (ROI). This is a numerical value that tells you whether the money you are putting out in marketing is bringing in enough revenue to justify your efforts. ROI is usually determined by the following equation:
(Sales growth – Marketing cost)/Marketing cost = Marketing ROI
By using this equation, you can easily determine which marketing channels are profitable and which ones are not beneficial. This allows you to reassign your money into channels that have proven themselves to be mathematically more effective.
Customer Retention for Marketing Success
While many people pay attention to drawing in new customers, it is also important to pay attention to returning customers. Your marketing campaigns should be carefully developed to draw in both new customers and bring back existing customers.
Business owners who are experienced in marketing will tell you that it is much easier to draw in new customers than it is to bring back customers you have already converted at least once, and it involves a different skill set.
The best marketing practices do not just focus on lead generation. They also focus on customer retention so that you can form long-lasting relationships with consumers who have the potential to become brand ambassadors and help advertise your brand through word of mouth.
One Final Thought
The most important aspects of marketing are bringing in leads, converting leads to customers, generating a profit from those customers, and retaining those customers to become brand ambassadors. The metrics you use to determine the success of your marketing campaigns should focus directly on these goals.