Decide How to Measure Marketing Success Before Throwing Money Into It
Marketing campaigns can get expensive.
You don’t want to spend money on your campaign with a vague idea of its impact on your bottom line.
The better option is to track a variety of marketing metrics, so that you can evaluate your efforts and gain valuable feedback for future campaigns.
In this brief guide, we will explore three metrics that can help you track the success of your campaign. In dollars and cents.
ROI on Marketing Spend
Return on Investment (ROI) is one of the most popular ways to measure your marketing campaign, and rightfully so.
Let’s say your campaign cost $5,000 and it generated $20,000 in sales. That would come out to a 300% ROI.
That sounds amazing, but let’s dig a little deeper on this hypothetical.
If the $20,000 in sales had a 10% profit margin, then your profit would only increase by $2,000 from the campaign. It turns out that your $5,000 marketing spend caused a $3,000 loss to your bottom line.
This example shows how metrics can be deceiving if you take them at face value.
Web Traffic Indicators
Your sales funnel represents the prospect’s journey to becoming a customer.
Website traffic enters the top of your funnel, where new visitors get their first exposure to your business.
Some useful key performance indicators (KPI’s) are search engine rankings, as well as impressions and click-through rates on your paid media investments.
Search engine rankings are a free (and organic) way to get people to your site. The usual way to take advantage of search engine rankings is to brainstorm the early informational queries of your target market and find out what keywords they are using for their searches. If you can reach the first page for a high-volume search, you will receive a lot of free and organic traffic, which is ideal.
Your paid advertisements are another way to increase awareness of your business. Track your impressions and click-through rates, then tweak your copy and design to maximize results of your paid ads.
Of course, attracting visitors to your website is not the final goal. Now, you need to turn them into customers. Which leads us to the next section.
Leads and Conversions
Let’s say you are receiving a lot of visitors to your blog. How can you determine the ROI of your blog posts?
One way is to track the number of email subscriptions and questionnaire forms that readers submit after reading your blog posts. But you must take it a step further because only a percentage of the users that fill out your form will convert to customers.
For example, if 10% of your email subscribers convert into customers, and each customer has a lifetime value of $1,000, then each email subscriber is worth $100.
You also want to track the origin of each lead, because a lead from your blog may have a different value than a lead from your Facebook ad, mainly depending on the cost per acquired lead.
You should now be well-equipped to begin tracking the returns on your marketing campaigns.
Remember to track several metrics and dig into the data, because an individual metric can be deceiving on its own.
If you do it right, the data can point your business in the right direction as you move forward.
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