In order to measure the performance of any marketing campaign, consider the return on investment, each successful customer conversion cost, the rate of conversion, and the way in which creating clear KPIs can improve the overall performance of your business.
Return on Investment
The return on investment for a marketing campaign is found by taking the amount of money that was earned through the campaign from customers that otherwise wouldn’t have purchased and comparing that to the amount of money that was spent on the campaign. This calculates the ROI, and the larger the return was, the more successful the campaign has been. This goal may be different for each marketing approach.
Rate of Conversion
This goal may be different for each marketing approach.
7 steps to measure marketing performance
With a multitude of marketing channels and opportunities to promote products and services, marketers often become confused about what they need to track and how to understand if that particular effort pays off.
Any marketing effort should result in an increase in views of the website. A successful digital marketing campaign will bring in many people to the website and will drastically increase the website views. Marketing is a way that business improves their views, gathers new contacts, adds to their emails or social media followings. In order to determine the success of any marketing attempt, it is necessary to look at the current measurements and compare them to those from before the campaign began. A successful campaign will improve numbers, and the most successful will do so with the lowest costs. This goal may be different for each marketing approach.
Tracking your marketing metrics with a pencil, paper, and spreadsheets ain’t gonna work if you want to see accurate results without wasting hundreds of hours. Manual reporting is long gone and replaced by business intelligence tools.
Marketers and data specialists who track their results in an old-fashioned way usually don’t have a holistic picture of their digital marketing efforts and draw up incorrect reports because of mistakes during manual data entry.
Besides, analysts who don’t take visualization seriously may miss out on valuable insights that are hidden from their sight.
To increase the brand’s Share of Voice, companies have to invest more in marketing. Especially the ones that have a small market share.
Let’s consider a case study by Lidl, a German-based discount retailer chain.
When Lidl entered the British market, it faced huge competition with other brands. With a 3% market share, Lidl had a 5% Share of Voice, which was barely enough to maintain their existing percentage of market share. That’s why their strategy was to increase their Share of Voice to attract more consumers to their brand.
Before diving into data visualization, your marketing team needs credible data that will be visualized. This can be achieved with the marketing ETL tools that we discussed earlier.
What’s even better about ETL solutions is that some of them have a direct integration with business intelligence tools. For example, Improvado streamlines cleansed data to Tableau, Google Data Studio, Power BI, and other visualization platforms. With BI tools, analysts can set up real-time dashboards to provide a bird’s-eye view of the key metrics and KPIs related to your marketing initiatives.
When companies track their digital marketing performance, they often focus on vanity metrics instead of actionable results.
Some examples of vanity metrics in digital marketing include:
- Social media followers
- Number of website visitors
- Organic traffic
- Search rankings
- Social media campaigns impressions
- And more
While the numbers might seem impressive at first glance, these indicators don’t show the organization’s main revenue growth drivers (customer lifetime value, the number of sales-qualified leads, the cost of acquiring new customers, ROMI of marketing campaigns).