One of the greatest problems with evaluating your marketing effectiveness is knowing which metrics are the most reliable indicators. For instance, traffic, shares, and likes can only provide you with tentative estimates, as none of these can help you determine the precise ROI. On the other hand, it is undeniable that all of these metrics are beneficial for your brand, which makes it impossible to exclude them. With this in mind, here are several metrics for measuring marketing effectiveness that you can use to your advantage.
Setting clear goals
In the introduction, we mentioned that the downside of certain metrics is the inability to calculate the ROI. This, however, is the case only if increased ROI is the end-goal of your marketing campaign. Instead, it’s a good idea to set several goals and track your progress over time for each of them.
For instance, measuring brand recognition and the increase in the number of brand mentions is just one of the things you can do. Moreover, the more share-friendly your content is, the greater your reach will be. Plus, this kind of outreach requires much less effort. As you can see, whether or not the increase in traffic is a vanity metric or not depends mostly on your point of view.
Recognizing actionable metrics
Since we have already covered the issue of vanity metrics, it is now time to talk about their counterpart – actionable metrics. Unlike vanity metrics, actionable metrics are the ones that usually result in a noticeable increase in your sales.
Two examples of this are the data retention and repeat usage. Keep in mind that the fact that someone hasn’t bought anything from you yet doesn’t necessarily indicate their lack of interest. They might just not be ready to make a purchase and it is vital that you know just how many people you have at each stage of the buying cycle.
Finally, keep in mind that only 8 percent of your repeat customers make up to 40 percent of your company’s profit. This is what makes repeat visits even more important.
Gathering relevant data
One of the problems of gathering data through analytical tools is in the fact that these tools only scratch the surface. For instance, while you may get a piece of information that a certain demographic of your customers returns over and over again, you may not know the reason why this is so. This lack of actionable information prevents you from exploiting this advantage and significantly improving your business model. The best way to solve this is through paid surveys online, which might give you a bit more specific data. Keep in mind, however, that you need to have a large enough test group in order to gain valid results.
No data is redundant
Among the greatest mistakes people make when measuring the effectiveness of their digital marketing efforts is believing that some data is simply irrelevant. First of all, you never know when a piece of information will come in handy, and second, it’s not like you’re storing this data in an actual storage unit. The truth is that both HDD and cloud storage have hit their all-time low prices, which should be a reason enough for you to hold on to everything your surveys discover. Moreover, having this kind of continuity in data can really help you track the progress of your brand over time.
Use email marketing
Even with all the latest improvements in the field of social networks and IM tools, email marketing is still one of the most potent means of both B2B and B2C outreach. Another great advantage of email marketing is that it is incredibly easy to measure its efficiency because it comes down to the average CTR (click-through-rate).
Apart from this, the average bounce rate is another thing you should keep an eye out for in this field. The best thing about email marketing is the fact that it is also great for A/B testing. This will allow you to experiment and learn. What’s more, some of the positive practices you come across in this testing method are also applicable to other marketing formats.
At the end of the day, measuring the effectiveness of marketing is not something that can be done in a vacuum. First, you need to set your parameters, such as your traffic boost, the drop in your bounce rate, the increase in your sales or the increase of your average conversion rate. Once you know what you are measuring against, you need to find the adequate tool for the job.
Nonetheless, when it comes to some of the specifics, it might be your best bet to go with a survey, a poll or a questionnaire. This way, your audience will be able to work with you on finding the right answers. Sometimes, a similar conclusion can be reached by simply reading through the comment section.