I NEED HELP MEASURING MARKETING
Marketing measurement is the perfect blend of art, science and data. It helps you understand your customer more intimately, spend your dollars more wisely, and choose partnerships that produce results month after month. Without measurement for your marketing initiatives, your company is led by the subjectivity of the loudest voice or by sheer emotion.
UNDERSTANDING MARKETING STRATEGIES
To get a better understanding of how to measure marketing, you have to first understand the differences between the two main marketing strategies – direct and mass marketing.
Direct Marketing is the practice by which marketers provide information about your product, brand, or service to a specific target audience. This audience is typically a segment of the entire market, thereby limiting the size of the market that you are communicating with. The goal of this type of campaign is to get the customer to perform a measurable action, like purchasing a product or investing in a service.
The benefits to this type of marketing are many, but these are the important few:
- Extremely measurable, with keen understanding of impact immediately
- Provides marketers with a solution to personalize their communication
- Continually improves results by tracking, measuring, and revising
- Relies on achieving results on the first attempt
- More cost effective since you are focusing on specific market segments
- Small budgets can create a big impact
Examples of direct marketing tactics include: pay-per-click (PPC), search engine optimization (SEO), trade shows, direct mail/email/text, social media marketing (SMM), direct selling, telemarketing
Mass Marketing is the practice where marketers push out information to mass audiences, in as many ways as possible, and at the same time. The mass marketer uses a blend of reach-based tactics to drive awareness with the goal of achieving ubiquity across the market. Companies like Best Buy, Coca-Cola, and Microsoft are all examples of mass marketing companies.
Mass marketing takes huge budgets to achieve the holy grail of ubiquity in the market and has the following benefits:
- Cheapest cost per person to reach massive audiences at once
- Builds brand recall and name recognition
- There are few companies that can afford to do mass marketing properly
Tactics of mass marketing includes advertising on television, radio, mass direct mail, non-targeted internet advertising.
39% of marketers say proving the ROI of their marketing activities is their top marketing challenge. (HubSpot)
How Do I Get More Online Reviews?
Now that we have a broad understanding of the two main marketing strategies, it is time to apply a measurement strategy. This can be achieved by completing a few steps and refining them along the way.
Create buyer personas – A buyer persona is a somewhat fictional representation of your business’ ideal customer. It is based on market research that usually comes in the form of direct interaction with your customer through interviews or questionnaires and real market data. This is a critical first step to helping you understand where your idea customers are, what challenges they are faced with, and where they consume information to grow within the market.
Define marketing tactics – Once you have a buyer persona, you understand where and how they consume information about their market or marketing problems. Armed with this knowledge, you define which tactics you will use to reach them. This can include tactics like SEO, PPC, trade shows, and programmatic media.
Define metrics for success & failure – First, get to the bottom of what the average lifetime value is for your ideal customer is. This will help you understand what you should be able to invest in tactics to get the job done. In addition, identifying these numbers help you create a ceiling for which you will pay to acquire each customer. Next you want to break down your sales funnel and identify what it costs for each lead and marketing qualified lead. This will guide you on what you need to spend on leads across multiple channels.
Implement technology – To effectively measure across multiple on and offline channels you need to select technology to help you better understand how the audience interacts with your website. At a minimum, we recommend an analytics platform like Google Analytics, which is free to set up and use. If you are an enterprise company, there is an enterprise version of Google Analytics along with other solutions like Omniture from Adobe. Next layer in on-site video recording, heatmap, and survey capabilities from a tool like HotJar to better understand how your customers cruise through your content. Last layer in other 3rd party platforms like call tracking to understand how many calls come in, from what sources they do, and how much they cost.
Partner with an agency – Measurement is extremely complex and this intensifies with larger marketing budgets due to the addition of more moving parts. The vast majority of the time, data analyst roles do not exist for the average company which can make the measurement transition challenging. To save time, energy, and resources, hire an agency (like ours!) to help you navigate all the options available to you.
72 percent of B2B marketers measure their ROI. (Source: Content Marketing Institute)
Frequently Asked Questions
It depends on your business vertical. The economic value that a properly deployed iteration of Google Analytics and secondary analytics programs, like call tracking, can be worth $300,000 – $2,000,000 to your business. Analytics help you uncover key insights about your most important audiences, how they interact with the site, what pages drive the most traffic and leads, and so forth.
Call tracking works by purchasing tracking numbers which swap out dynamically when a user visits from a specific source. In most instances you will need at least 7 tracking numbers to measure the basic digital traffic online. They are as follows: Direct (users type your website name in directly), Google/Bing/Yahoo Organic (users type a search query into a search engine, click the result, arrive at your site), Offline numbers (print, sales collateral, traditional advertising)