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How to Measure Marketing Effectiveness

How to Measure Marketing Effectiveness

How to Measure Marketing Effectiveness

Do you know if your marketing is actually working? And I’m not talking about if the number of Likes on your Facebook page is increasing. Every decision you make should be informed by data you are collecting from your marketing efforts.

So how do you measure if your marketing is working?

  1. Set KPI’s

You need to set goals for your business so you can track what’s working and what’s not. If you don’t have these in place then you won’t be able to evaluate your success.

It’s simple if you don’t measure it then you can’t improve it!

KPI’s you should be tracking are:

  • Sales growth. What better way to track if your marketing is working than by the growth in your sales revenue. You can then see what marketing efforts are returning the highest growth in sales and weed out the ones that aren’t contributing.
  • Lifetime Value of a Customer. Do you know what your customer is worth to your business over the lifetime of the relationship?
  • Cost of Acquisition. This is the cost of convincing a prospective client to buy your companies products or services. Once you have this figured out, look at how many new clients you want in 12 months and the marketing budget you will need to achieve this.
  • Website Traffic. The visitors to you site are potential leads. Getting to know where your website traffic has come from, what they are doing on your site can help you figure out what they want from you.
  • Social Media Reach and Engagement. Not all social media will work for your business so it’s important to track the reach and engagement of your channels. Is this converting to visitors on your site?
  • Email Marketing Performance. Email marketing is one of the most successful marketing strategies, so you need to analyse data such as open rate, unsubscribes, click through rate and conversions.

 

  1. Frequency of Reporting

Decide how often you are going to collect the data and analyse it. A good starting point is to do this monthly. Here at Gloss we do this on a weekly and sometimes daily basis for ourselves and our clients.

Especially when it comes to Digital channels, the ability to collect data in real time allows us to re-evaluate strategies immediately.

  1. Actions

Don’t simply measure your marketing for the sake of having some numbers to look at! From the metrics you track you can see if your marketing is actually effective. For example if you see that Facebook is driving 60% of the traffic to your website and Twitter is driving 0%, then adjust. Get rid of it, there is no point in doing something if it isn’t working for you.

Bottom line is if you don’t track your marketing your marketing won’t be overly successful. If you don’t know what’s working for you, then you could be wasting money, time and efforts on marketing activities that simply don’t get you any return on investment.



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