The Quarter is Ending, How Did You Measure the Success of Your Marketing?
The end of the quarter fast approaches, and organizations are rallying themselves for the next leg of the 2022 race. However, companies need to check that they are on the right track. Marketing analytics is an efficient method to measure the pulse of a business. Yet, it can be difficult for companies that don’t have systematic structures in place.
According to Google, 89% of the top marketers use marketing metrics such as market share or CLV (customer lifetime value) to gauge the effectiveness of their campaigns.
These values provide a trustworthy yardstick that drives customer decisions based on collected information rather than a hunch or abstract theory. In other words, the metrics serve as real-world observations facilitating real-world choices (such as marketing performance).
While marketing analytics may seem overwhelming for some decision-makers, it doesn’t have to be a setback, and it should never go ignored. In fact, with the proper preparation and research, marketing analytics can help organizations acquire a clearer understanding of customer needs across the funnel – backed with reliable data.
Measuring Success in Marketing
Essentially, as with any type of measurement, the calculation of marketing success requires reference to several metrics respective to each stage of a funnel. The most important metrics include social engagements, click-throughs, and website conversions.
By accumulating and assessing the response of these metrics, companies can obtain a reliable estimation of customer behavior and the trends that might continue into the next quarter of 2022.
Additionally, decision-makers need to account for two types of metrics in their marketing mix for a comprehensive analysis, including total metrics (the impact of an organizational outreach or effort) and efficiency metrics (the indicators of marketing efficiency).
Dividing the Funnel
Customer preferences, priorities, and behavior change as they transition through the various stages of a marketing funnel.
Organizations need to apply a suitable strategy and response at each stage to optimize the best customer response and maximize marketing goals ROI. The underlying goal is for businesses to guide customers across each stage of their buyer journeys seamlessly with minimal issues.
An organized process of attracting, engaging, and converting prospects requires differing tactics that businesses should support with appropriate marketing mix metrics. Understanding and applying the right metrics can help improve customer experiences and marketing outcomes.
The first step involves dividing the marketing funnel into its basic segments. Marketers may conduct the process with an AIDA (awareness, interest, desire, action) model or through the three funnel stages (top, middle, and bottom).
A structured breakdown of the marketing process enables easier metric attribution and management. McKinsey & Co. reports that full-funnel marketing may become an increasing business priority based on recent customer trends, with more than 60% of consumers trying new shopping behavior.
For example, companies that apply the three-stage method may evaluate their marketing success as such:
- Top of the funnel (TOFU) relates to the awareness stage where businesses inform prospects about their offerings to garner support and conversions. As such, social media engagement might serve as an effective indicator of success through likes, follows, and comments on an advertised post. Other strategic metrics may include PPC (pay-per-click) advertising and referral sign-ups.
- Middle of the funnel (MOFU) involves semi-engaged customers or prospects committed to a brand. Valuable metrics in this segment may include survey participation and feedback.
- Bottom of the funnel (BOFU) is the conversion phase, where companies need to gauge the effectiveness of lead magnets (such as the number of downloads or landing page visits). Metrics from this stage of the funnel determine the effectiveness of marketing campaigns, specifically the final stretch toward conversion.
Total Marketing Metrics
Aside from funnel segmentation, businesses need to ensure that they analyze and improve their marketing goal’s ROI with a combination of qualitative and quantitative data. Total marketing metrics (quantitative data) relate to the impact of your efforts, gauged via customer interactions.
Total marketing metrics may include participation rates in webinars, click-through rates (the number of clicks on a hyperlink leading to conversion), and impression (how often an ad shows up on a prospect’s app or viewed website).
Marketing Efficiency Metrics
Businesses should also account for efficiency metrics that compare the success rate with quantitative values. The most important marketing efficiency metrics include cost per lead, engagement rate, and CPM (cost per mile). It is essential to avoid using marketing metrics interchangeably, resulting in inaccurate reports and inefficient marketing mix strategies.
For example, the number of impressions does not instantly equal the click-through rate, and a high click-through rate may not immediately suggest effective ad impressions.
Why Marketing Measurement Matters
Measuring your marketing performance serves as a reliable guideline for future business budgeting decisions by interpreting customer trends. A segmented, funnel-based approach and a combination of marketing data give companies the contextual analysis necessary in engaging customers at every stage of their buyer journeys across varying scenarios.
A clearly visualized and analyzed set of metrics drives marketing ROI, fueling purpose, vision, and success. There will be fewer advertising unknowns with systematically improved marketing performance as businesses navigate the next quarter, engaging customers with greater consistency and confidence.