3 Ways to Tell if your Marketing is Truly Effective
Marketing can be a tough nut to crack. And that’s not because it’s inherently difficult, but because there’s too much data out there for us marketers to sift through.
We’ve all heard of the saying “too much of a good thing is a bad thing,” right? Well, that old adage certainly rings true in this case.
That’s not to say that data isn’t important. After all, you can’t hope to make smart business decisions without data-driven insights to light your way.
So how do we know if our marketing strategies are really working if there’s so much information to muddle through?
Well, how’s this for a solution: Simplify your efforts and look at the big picture!
If that piece of advice sounds like a cop out, we assure you that it’s not. For starters, you can’t focus on the outcomes that really matter if your process is not streamlined enough.
With that said, below are the three best ways to tell if your marketing is truly effective.
1. Link marketing objectives to overall revenue
In the final analysis, the effectiveness of your marketing campaign can be determined by looking at your company’s total revenue.
Mind you, there’s more to the numbers than meets the eye. There are so many variables at play in marketing that one can’t afford to make hasty conclusions.
So where should we look in order to trace which aspects of your marketing campaign are making a big impact on your bottom line?
Well, you have your campaign data, of course. But keep in mind that you have to interpret them in their proper context.
Thanks to the plethora of tools that are available out there, data can easily be tracked, measured, and evaluated, thus providing you with actionable insights that will drive your business forward.
But before you can track or monitor your progress, you have to define your business benchmarks. As such, you need to make sure that your marketing campaign has well-defined objectives.
Typically, marketing objectives include some or all of the following:
- Increasing sales
- Growing market share
- Building brand awareness
- Targeting new customers
- Enhancing customer relationships
- Improving user experience
By setting clear and specific objectives, you’ll know which KPIs to pay attention to. This makes it easier for you to benchmark the effectivity and progress of your marketing campaign.
2. Measure the growth and acceleration of your pipeline
One of the best ways to know if your marketing campaign is headed for success is to measure its pipeline velocity.
For those who are not familiar with the term, pipeline velocity is the speed with which your leads are going down the conversion path. Simply put, it measures how fast you’re making money.
To determine your marketing campaign’s pipeline velocity, you have to take into account the following attributes:
- The number of qualified leads in your sales funnel
- Conversion rate
- The average deal size of your sales team
- Average conversion time
And here’s an image showing the exact formula for calculating your sales velocity:
(Image Source: Geckoboard.com)
If math is not your strongest suit, don’t just cower in the corner! Heinz Marketing was kind enough to provide us with their very own dedicated sales velocity calculator.
Each of the aforementioned four attributes plays a significant role in determining how profitable your business is over a period of time. Taken together, you can identify which areas of the sales funnel need to be improved, thus helping you take the concrete actions necessary to improve your overall revenue.
Ultimately, the sales pipeline velocity is one of the most important marketing and sales KPIs because it allows you to focus your marketing efforts in areas where they are sorely needed.
3. Evaluating customer response or engagement
In our increasingly-connected world, customer engagement has become even more integral to business success.
The truth is in the pudding. Here are a few studies to bring the point home:
- Customers who are fully engaged represent a 23% premium when it comes to share of wallet, profitability, revenue, and lifetime value compared to the average customer.
- Engaged customers bring 37 percent more revenue to their primary bank than customers who are always disengaged.
- Engaged hotel guests spend 46 percent more annually than disengaged guests.
The point here is obvious: There’s a direct correlation between customer engagement and business success. So if you’re keeping your customers engaged, then you must be doing something right. Makes sense!
Measuring customer engagement is mostly channel-specific. To measure engagement on your website, you can use website analytics tools such as OpenTracker to check metrics such as average time on page, average pages per session, bounce rate, and percentage of returning users.
On the social media side, each platform has a built-in analytics tool that can measure engagement. Facebook, for example, has a Page Insights section that can identify and monitor key customer engagement metrics such as the number of Likes, comments, shares, and more.
Twitter, on the other hand, has a dedicated Analytics page that breaks down engagement data into easily-digestible bits of information.
Marketing is continually evolving. New technologies emerge, customer expectations increase, and business models are replaced by new ones. It all sounds so complicated and unwieldy.
But in the final analysis, all of that is just smoke and mirrors. As long as you stay focused on the core objectives of your business and keep your customers at the forefront of your marketing campaigns, your investments will always yield a higher rate of returns.
If you would be interested in Wilde & Burly helping you figure out how effective your marketing is, why not contact us today.