If they weren’t already aware of it, many businesses discovered in the past year the importance of their marketing presence. Simply pouring money into your marketing efforts, however, is not enough—you need to be sure that you are investing in strategies that work. This involves finding the right platforms for your business and using them effectively to reach your goals.
To measure whether your marketing is effective, here are some points to consider.
Knowing Your Goals
Before you can even think about reaching your goals, you must obviously know what they are. Whatever else you may want, you are trying to grow your business by attracting customers and increasing revenue. Try to be specific: how much do you wish to grow your revenue? To reach that goal, how many new customers would you need? Could you also reach that goal by increasing revenue from current customers?
When you have firm goals in mind, you will be better prepared to choose the appropriate platforms and methods that work best for you.
Your Marketing Funnel
You may already be familiar with the concept of marketing as a funnel. It is helpful to keep this in mind to guide your efforts. Today’s customers tend to be more informed about the products they are buying, typically going online to read reviews or do other research before choosing where to spend their money. The idea of a funnel is useful in visualizing their journey from general interest to focused, committed buyer and usually involves the following steps:
- Attraction and Engagement. As customers first enter the funnel, they are generally aware of a need or problem that needs addressing, though they are not necessarily ready to act upon it just yet.
- Education. At this point in the funnel, the customer is not only aware of their need or problem, but they are also looking for ways to address it.
- Conversion and Purchase. By the time the customer has reached this point, they understand their problem, know what to do about it, and are ready to take action. They know what they intend to purchase, or whom they wish to hire.
You can see how the customer’s focus narrows—like a funnel—until they make their decision and act upon it. At one point, this was the entirety of the funnel; the customer has found a solution, made their purchase, and is now satisfied. For 2021 and going forward, we’ll add another part to your funnel, which takes that narrowed point and widens it in the shape of a pyramid with the following steps:
- Retention. Now that you have gone through the effort of attracting your client, you won’t want to just let them go. Follow up with them and keep them engaged. Your interaction should end immediately upon them making a purchase.
- Expansion and Loyalty. Repeat customers help your business grow. Your customers have now made a purchase from you and if you have followed up, they have also had a great post-transaction experience. The is the point where you can encourage further sales, provide continued excellence in your service, and create loyalty.
- Ambassadorship. This is your ultimate customer, and where you want them all to be. At this point, they are not only loyal to your company, but they are also serving as ambassadors and helping to promote you by sharing their experience.
What Metrics to Measure
As mentioned above, it is important to measure your marketing to determine what is working and what can be improved. Some of the most important metrics that you should be following are your Cost Per Lead and Return on Investment.
Once you know the strategies that are proving effective, review your entire funnel to see where these insights can be applied to build awareness of your brand, connect with those who are just entering the funnel, and build your relationship with existing customers who are on their way to becoming ambassadors.
Depending on your budget, this may not be possible, especially at the beginning. If this is the case, direct your attention to those clients who are prepared to buy, as doing so can help you generate more business that you can use to invest in other goals like brand awareness.
In each part of your funnel, there are metrics to focus upon:
Attraction and Engagement
- Direct Traffic in Google Analytics. Are you seeing an increase in direct traffic as your audience sees your brand and begins to search for you in Google?
- Website Session. Is there an increase in website traffic? Is it consistent?
- Remarketing Audiences. Are they increasing based on new visitors to your website?
- Facebook Video Views. Are your views growing, allowing you to remarket ads to those who have watched your content?
- Are you writing blogs? Are they being seen? Tracking your blog views is worth considering.
- Email Marketing. Are you growing your email list? Are you seeing engagement? Open Rate and Click-Through Rate are metrics to watch to measure how your emails are performing.
- Downloadable Content. If you have a download magnet, are you seeing regular downloads? If there are few downloads, might want to try something different, or consult with clients to see what appeals to them.
Conversion and Purchase
- Leads. Where are your leads coming from? Are they organic, or do they come from Google and social media?
- Email Marketing. If you have an automated email campaign for new contacts, you should be tracking engagement rates.
Expansion and Loyalty
- Check your Google reviews. Are they positive? Consistently so? This is one of the metrics that can indicate your level of customer loyalty.
What is your revenue per client? Is it growing?
- The best way to measure if you have brand ambassadors is to measure whether you are receiving referrals.
These are some of the metrics that you should be watching to measure the effectiveness of your marketing and help you locate any weak areas in your funnel that need improving. Knowing what is working for you, what isn’t, and where the problems lie will give you the insight you need to help grow your business and meet your goals.