With anything, don’t you want to get some sort of feedback? Ok, that’s a bit vague let’s go through a few examples. If you study extremely hard for a test, don’t you want that validation of a 100 to tell you that you know the material? If you play sports, the score count on the board means that your team is better than that other team in this given game. Numbers are a big deal! People base a lot on numbers. Sure, there are some things you don’t want to quantify like your love for a person or how much some special place means to you. With those more sentimental items, you know deep down that they mean a lot.
But for many other situations, you want the numbers. That’s true for many cases in marketing. There are varying types of measurements to track the performance of your campaign, advertisement, or sale of a new product. For many marketing managers, you would like to know how much is being sold because of the campaign, how many people saw the campaign and bought versus how many saw it and didn’t buy. But there are also plenty of non-qualitative measurements to track as well. Not everything can be tracked, and sometimes just because people didn’t buy because of that one campaign, it doesn’t mean they won’t remember it later on and buy your product.
Long story short, there are plenty of ways to measure how well your marketing is working. If you are not measuring it, you won’t know what is and isn’t working. There has been growth over the years in A/B testing in which you try out differing headlines, wording, photos, etc. in a campaign, email, web ad and see which worked better. These small changes can help make you more money! It may seem silly that a red button does worse than a blue button for some company’s product email, but it can have an impact.
Now let’s get onto the point of this blog post. I want to give you some of the most common marketing performance metrics to help you track how well your marketing is working. These will be things like ROI, amplification, conversion rate. If these don’t make sense, don’t worry, it’s all going to be explained below.
Return on Investment (ROI)
This is one of the most important metrics to track. It helps you determine if a campaign was worthwhile or not sales wise. If you invested $500 in Google adwords, but only got $100 in sales from it, the ROI isn’t great as you didn’t even break even.
Customer Lifetime Value (CLV)
This determines the amount of profit you can expect to get from each customer over the lifetime of them purchasing from you. This is an important metric as it helps you determine how much each customer is worth to you. Then you can determine how much to spend to acquire and retain them without losing money. If the CLV for customers is $10, then you shouldn’t be spending a whole lot of money trying to retain them, as they don’t buy very much. If the CLV is $3000, then you can spend a good amount of money acquiring and retaining them. These are very general examples, but it can help you get the picture.
Website KPIs (Key Performance Indicators)
These indicators are for websites that promote a service or those selling a product online.
– # of visitors that complete an order/submit inquiry
– Conversion rate (Percentage of site visitors who become customers)
– Bounce rate (Percentage of users who leave your site after viewing just 1 page)
– # of started but uncompleted orders (cart abandonment rate)
Social Media KPIs
Social media can be much trickier to measure, because it is about being social with your audience and customers. Social media isn’t all about selling (though that is the end game). It is about building relationships and those relationships eventually leading to loyal customers who end up buying.
– Brand awareness (number of mentions of your brand online)
– Post reach (number of people who saw your content)
– Share of audience (percentage of people a brand reaches compared to the competition)
– Amplification rate (number of shares your posts get on average)
– Click through rate (Number of clicks a link gets divided by the number of impressions)
– Social media conversion rate (Percent of total conversions attributed to social media divided by total conversions)