Measuring your marketing performance is important for any brand or company’s marketing department. This process will determine whether the existing marketing plans are successful and where they need to be improved. This will lead to higher sales and a healthier brand or company in the long run.
What does measuring entail and why is it important?
Marketing metrics are used to track the performance and success of marketing activities. Although different types of marketing activities require different marketing metrics, the function of most metrics is to measure the actions and responses of the audience. Different marketing metrics function to provide different information about the performance of marketing plans. Some common marketing metrics will measure:
- The effectiveness of email marketing by considering how many emails are opened, forwarded, and how many subscribers have unsubscribed.
- Digital marketing effectiveness by considering the click-through rate and impressions.
- Websites by considering the traffic, new and returning customers, and conversions.
- SEO by considering the keyword rankings, search volume, and organic traffic.
Marketing metrics are important because they offer insight into marketing strategies. Without this, brands and companies would not know whether their marketing plans are effective and what needs to be improved. Marketers would also be able to use these metrics to reach new customers, increase awareness, increase engagement, improve sales, and more. These marketing metrics do not only offer information to improve existing marketing plans, but also information to use when creating future ones. Marketing metrics can also be used by marketers to show brands and companies the effectiveness of the marketing campaigns, which would then influence annual budgets and the growth of the brand or company.
How to measure your marketing efforts
There are a wide range of marketing metrics to use. Choosing the right metrics is key to gaining the information needed to improve and maintain successful marketing plans. Some of the common marketing metrics used are:
- ‘Return on investment’ (ROI) which is used to measure the marketing return on investments as the name suggests. This metric considers how much the marketing department has spent and what has resulted from that.
- ‘Cost per sale’ is used after ROI to unpack the results and determine if the money being spent is being spent wisely.
- ‘Cost per lead’ functions to determine the amount spent and then divides this amount by the leads it has generated for the brand or company. The lower the ‘cost per lead’, the more successful and cost-effective the marketing plan is.
- ‘Conversion rate’ then functions to clarify and sort the information regarding the amounts the marketing department has spent and how well the marketing plan is functioning. This is often determined by considering the traffic on the website or by determining how many of the leads have led to sales.
- ‘Customer lifetime value’ (CLV) determines how many sales have resulted from a single customer over a period of time. The CLV is determined by multiplying the number of purchases a customer makes per year by the average number of years a customer purchases products from the company. Marketers can use this information to personally target customers to increase sales and keep their business.
How DC Lab can help
DC Lab can help by offering a digital marketing audit process. This process offers brands and companies a ‘snapshot’ of their current digital marketing health and compares them with industry competitors. Brands and companies will gain information on the strengths and weaknesses of their business’s current digital marketing strategies and highlight opportunities for improvement. DC Lab will then also develop an improved digital strategy based on the findings.
Measuring your marketing performance may seem difficult and intimidating, but it can be easily achieved with the services of DC Lab. Contact us today to get the process started.