When you’re marketing your business, you’re spending valuable time, energy, and money. So you need to know whether what you’re doing is worthwhile! Measuring marketing effectiveness is a key piece in any successful marketing strategy. But it’s one that’s often overlooked.
To make strategic decisions in your business, you need to fully understand your metrics! Data is the key to measuring marketing effectiveness.
But knowing which metrics to track can be a little challenging, especially when you’re just getting started with analyzing your metrics. If you’re ready to start taking advantage of all that data has to offer, you’re going to need some tips and tricks.
Why Is Measuring Marketing Effectiveness The Right Way Important?
First, why is measuring marketing effectiveness so important? Using your metrics, you can understand what’s working in your marketing, what’s generating huge results, and what you can (and should) let go of.
There are lots of ways to measure marketing effectiveness, and you’ll need to choose specific metrics to get a comprehensive image of your marketing success. There’s no one metric that can represent everything when it comes to measuring marketing effectiveness. Instead, you’ll need to compile a few different metrics to see the best results and make the best decisions.
When you focus on measuring marketing effectiveness, you’ll be able to understand what marketing efforts you should prioritize and eliminate any actions that aren’t generating results.
5 Metrics To Track As You Start Measuring Marketing Effectiveness
Now that we know why measuring marketing effectiveness is important, let’s talk about how to do it! Here are five key metrics you should track in order to see how your marketing is doing.
ROI For Marketing Efforts
One of the biggest metrics you’ll want to calculate and analyze is ROI for your marketing efforts. ROI, or return on investment, represents the revenue generated from specific marketing campaigns, posts, or initiatives.
The higher your ROI, the more effective your marketing efforts. Just remember that ROI isn’t the end-all-be-all for measuring marketing effectiveness.
If you’re looking to understand how specific social media posts or other marketing initiatives are generating ROI, use UTM links! UTM links let you track conversions from specific places. These include social media platforms, ads, blog posts, email newsletters—you name it.
When people click on UTM links, they are redirected to your destination URL. The link gathers valuable demographic and behavior data, all before they even land on your site.
One common place people typically use trackable links is within Facebook ads. You’ll be able to see exactly how many of your website visitors came from a particular ad campaign. Our Facebook Dashboard makes this easy to see your results. Check it out here.
Using trackable links lets you be more strategic in your marketing endeavors! They are super accurate in recording the number of clicks for your links. This is beneficial because you’re getting exact metrics for specific traffic sources.
Lead Generation and Nurturing
A huge part of growing your business is generating (and nurturing) your leads. Tracking metrics will help you understand your customer journey and how well different areas of your sales funnel are performing.
Keeping track of lead generation and nurturing metrics help you measuring marketing effectiveness. Then, you’ll know exactly where to focus your efforts for strategic growth!
Your conversion rates help you understand lots of key information about your customers, website, and marketing. You’ll be able to see how certain channels and platforms drive conversions, how people convert at different areas of your sales funnel, or even specific campaign effectiveness.
As a result, this is one of the most important metrics for measuring marketing effectiveness.
Cost Per Lead and Conversion
As your marketing generates leads and conversions, you’ll want to know your costs inside and out. How much does it cost to generate leads? After that, how much do your conversions cost?
Achieving specific results is just the beginning. We already mentioned ROI, but knowing whether or not results are worth the cost really is important. Your goal should be to balance affordability with results.
Brand Awareness Metrics
Finally, you can track metrics that help you understand brand awareness. You’ll be able to do this with social media, organic search traffic, and other metrics like engagement and clickthrough rates.
With brand awareness metrics, you can examine your sales funnels. From there, you can strategically implement improvements. This way, you’ll boost conversions!
One area to focus on here, particularly for nurturing repeat customers, is lifetime customer value. This metric focuses on how much money one customer spends with your brand throughout their “lifetime” as a customer.
Basically, lifetime customer value lets you know how much any customer is worth for your business. Once you know this, you can strategically focus on customer retention campaigns to generate more revenue from your best customers (and nurture those with potential).
Related: How to Get Started With KPI Tracking
Measuring marketing effectiveness is one of the most important parts of any successful marketing strategy.
If you’re ready to take advantage of your marketing analytics, make sure you check out our FREE Metrics Generator to uncover which metrics YOU need to start tracking ASAP.
For more resources on measuring your marketing check out these fan-favorite posts:
- How To Switch Your Focus From Income To Views
- How Traffic Data Can (and Should) Drive Your Marketing Strategy
- The 5 Most Important Metrics to Measure Your Website’s Success
- What Are The Benefits of Google Analytics For Service-Based Businesses?