Access to data has changed how marketing campaigns are informed, managed, and measured.
Marketing analytics guide our marketing efforts – used to gauge the success of campaigns, identify areas for improvement, and inform future campaigns to increase ROI (return on investment).
Marketing metrics demonstrate the effectiveness of campaigns across your marketing channels; they are key performance indicators (KPIs). They are used to measure how campaigns are performing and identify areas requiring improvement. Metrics support a better understanding of your target audience and what resonates with them and help you monitor trends and measure the ROI of each campaign you run.
There are umpteen metrics you can choose to measure; however, not all are relevant to your business. To be effective, identify those KPIs that directly impact your revenue and the marketing channels that generate the most conversions (i.e., visitors that complete the desired action, for example, purchase your product or service).
We focus on conversion rates – the what, why, and how.
If yours is an eCommerce site, a sale is your 'desired action'. Your conversion rate will be the percentage of people who made a purchase divided by those who engaged with your adverts/ website.
Total sales / total site visitors x 100 = conversion rate
If product sales are not your focus, you'll want to measure leads. Your conversion rate will be the percentage of people who take a defined action divided by those who engaged with your adverts/ website.
Total actions / total site visitors x 100 = conversion rate
Marketers love to track performance. There are plenty of easy to use tools built with this in mind. So, how can you track what?
Google Analytics enables you to track conversion rates on your website, as well as other valuable metrics such as sources of traffic ("visitors"), page performance, and exit and bounce rates.
Google Analytics also tracks your site's sources of traffic – or visitors. This metric enables you to identify how marketing channels contribute to your conversions – for example, your Google Ads campaign, social posts, email, or other. Called marketing attribution, the benefits are an informed marketing strategy, effectively allocated budgets, increased sales, and improved ROI.
Google Ads allows you to advertise within the 'Google Network' – Google search results pages, Google Maps, Shopping, and other search sites that partner with Google to show ads.
There is a free Google Ads conversion tracking tool that you can use to track conversions when someone enters your website through an ad. This tool lets you see how effective your campaigns are and to adjust them as required.
There are simple actions you can take to improve your conversion rate, for example, consider adding more specific keywords and negative keywords (words that do not trigger your ad).
Your social media activity feeds into your sales and marketing efforts. Measuring social traffic and conversion metrics provides insight into the effectiveness of your social media campaigns.
For example, calculating conversion rates helps you understand whether the messages resonate with your audience and which platforms generate the most traffic.
Measuring views to actions – the actions generated by the content posted vs the total number of views – can give you an idea of how effective your social media activities are.
Email marketing campaigns drop your message directly into your current (and potential) customers' inboxes. Base what a conversion is on your marketing email's objective – for instance, email opens, products purchased, subscribes, or blog post views.
Tracking email open rates and click rates over time helps you evaluate how captive your audience is and whether your content is engaging them. From there, get stuck into the meaty details, evaluating which links – if you included more than one – garnered the most clicks/ conversions.
If you find your conversion curve falling flat, we're delighted to tell you that there are simple ways to boost it by engaging in a little conversion rate optimization (or CRO for the acronym lovers).
The following are a few to get you started:
How do you know that your marketing campaigns are the best they can be? Testing.
Split, or A/B testing compares two or more versions of a campaign – a webpage, email, or other – to see which generates more conversions. Campaigns should have a shared objective with a fundamental variable, so you can contrast and compare effectively.
Variables might include:
Headlines and subject lines
Your offer – description and CTAs
Media – no images, static images, video.
Even if you strike it lucky with an effective campaign, it's worth testing to see if you can improve further! There's always room for improvement.
Guide your customers – current and potential – on a structured journey through the sales funnel from awareness to purchase. There are several touchpoints customers pass through in the sales funnel, ensure that you are engaging them at the right time with the correct information.
People are on the go. You need to ensure that your digital presence is mobile. Customers want a seamless experience and, if you don't want them to bounce (when they land on your website), you need to ensure that it's fit-for-purpose.
Keep your CTAs compelling. Be creative in your use of language – try incorporating dynamic CTAs such as 'discover' or 'inspire', or assertive CTAs like 'buy' or 'join'. Encourage customers by using pre-emptive phrases such as, "Yes, sign me up!"
Also, think about multi-media! Keep your text to a minimum and consider images and videos.
Forget features, focus on benefits. Show your customers that you understand their pain points and outline clearly how your product or service answers these – what the benefits are to them.
Trust is vital, and people trust their peers. User-generated content is an excellent way of promoting your product. We tend to trust online reviews, and they provide valuable insight into how the product works for people who likely have a similar background as potential customers. Win!
Tracking key marketing metrics with a marketing dashboard.
To sharpen your competitive advantage, you need to optimize performance across growth, profitability, sustainability, and customer trust – you need to operate with agility.