With the advances in technology over the last 15 years, there has been an explosion in the number of channels and resources available to marketers. There now exists an abundance of consumer data, digital channels and social media sites. These present marketers with a wealth of new opportunities, but making the most out of them requires detailed strategic planning – as well as using the correct tools. In the current landscape there is phenomenal opportunity to personalize content, track results, iterate, and ultimately, drive business growth. However, this complexity can also be overwhelming. Many marketers are forced to chase short-term results and efficiencies, to hit goals, rather than using more effective longer-term strategies.
To make the most of the new opportunities, marketers need time to step back and look at their strategy from a broader perspective. Often easier said than done. The proliferation of data means that it simply must form the foundation of any marketing decision. It also goes without saying that to truly capitalize on the data that’s available, marketers need the correct tools at their disposal.
Defining Marketing Measurement
Marketing measurement is the method by which we measure the effectiveness and performance of any marketing strategy. This is done by looking at a range of metrics and Key Performance Indicators (KPIs). Defining effectiveness and performance can be nuanced, although it should principally be done based above all else on your business and marketing goals.
How do we Decide What to Measure?
More data has been produced in the last two years than in the entire history of the human race. This means that marketers need to be especially careful when assessing which metrics to use, and which metrics to focus on when making key strategic decisions. You should be selecting your metrics based on your business and marketing goals. For instance, there is no point focusing on a high Facebook post engagement rate if this does not lead to sales or to the movement of consumers further down the funnel. What end goal are you really trying to deliver? And what is the one thing that will let you know if you are on track?
Weighting Different Metrics
You can have a number of different KPIs, but it’s important to be aware of the value of each in comparison to the rest. Your KPIs need to be consistent over time, and the way in which you weight them should also be consistent. It may be appropriate to alter the weighting of certain customer interactions dependent on where they are the situated in the customer journey. For example, if a customer has downloaded a whitepaper just before purchasing your product, you could argue that this action had more influence over their decision than their visit to your site twelve months earlier…
Conversely, you could also argue that that first earlier interaction deserves more weighting, as that customer may have only downloaded your whitepaper because they had already known about your product from their earlier visit. The danger here is that if there is no consistent interaction weighting, this could end up drastically altering the results from your marketing campaign going forward, giving your overall strategy an incorrect and inconsistent analysis.
The Timescale of your Metrics
Robust marketing measurement is critical because it creates focus on sustainable business growth. For this to happen, you need to have long-term metrics, that look at performance six to twelve months in advance. It’s wise to maintain long-term metrics with some short term goals. Allowing you to keep track of the revenue impact of campaigns as well as retention rates of your customers over a longer time period. This insight builds confidence – you’ll be maintaining short-term revenues and driving high customer lifetime value.
Sense-checking your thinking will add value
Are your reports creating genuine value for your customers and business? Or can it sometimes feel a little like you’re just reporting for the sake of it?
• Make sure your total number of metrics is manageable. Five should be your absolute maximum, and they should be clearly prioritize.
• Your metrics need to be actionable. If you review a metric at the end of the quarter and it’s not giving you any valuable insights, it might not be the right metric.
Collecting enough data, at the right times
Whichever KPI you are examining, you must consider how often you are reviewing the insight. For instance, only gathering data at three-month intervals could render your analysis irrelevant. If you’re getting out of date information as a result, it could be not only ineffective, but also actively detrimental to your strategy.
Measuring a marketing campaign is made even harder today due to the plethora of devices that consumers jump between. This makes attribution exceptionally difficult. Consequently, it’s much better to implement a multi-touch model to accurately determine the effectiveness and impact on revenue of each campaign. You can read in much more detail about a multi-touch model and how drives growth here.
With all the now available data, there is no longer an excuse for guesswork. At Fospha, we believe that most businesses already have the data they need to reach their full potential, it just needs unlocking. We have vast experience in determining the most impactful metrics to measure the performance of a company’s marketing strategy.