Measuring Your Marketing Effectiveness

Marketing effectiveness is often measured by both the short term and long term revenue produced by an advertisement and how effectively the business improves its bottom line profits during that campaign. With the large amount of statistics and analytics available for your marketing department, there are literally thousands of metrics that you can be tracking… but how do you know which ones are really doing something? That’s where using custom dashboards for advertising helps! They give you a clear view of what’s working and what’s not.

It all starts with understanding your current marketing effectiveness. It is comprised of several separate components including lead generation, segmentation, and identifying new customers. In order to create a dashboard, you first need to be able to display the various components in the right way so you can create an effective information flow. The top view would be that of the lead generation segment, which would show the number of new leads you are generating on a daily basis, the percentage of those leads being converted into clients and the cost per new customer you are charging.

The second component that makes up your metrics is segmenting the current customer base. You can then look at your current products or services and see what segments are performing the best and what segments need more focus on. For example, it might be possible that the biggest potential future profit driver in your organization is the customer with the longest lifetime value. Your dashboard will track the average lifetime value of your customers, their buying behaviors and their level of purchasing confidence.

The third component is quite simple: understanding your customer segmentation. By tracking the existing purchasing habits of your customer base, you can quickly and easily see if the marketing campaigns you are running are meeting the goals or if they are making things harder for your company. You can then easily measure marketing effectiveness by assigning each customer a score depending on how well your offerings to meet their needs. This will help you isolate which offerings are not meeting your target goals.

The fourth component is quite related to the first three. It involves assigning a value to every lead and then analyzing your marketing campaigns based on how well these high-value leads are converting. This component is called the conversion performance indicator. The KPIs here will allow you to track and compare the performance of your marketing campaigns and find out where they are falling short.

The fifth component of the five-pronged approach to marketing effectiveness revolves around the concept of leveraging social media. It is here that you have to separate your content from your advertisements. You can do this through the various social media platforms such as Facebook, Twitter, LinkedIn and YouTube. By doing so, you will be able to understand what your customers want and how to deliver on this. By knowing this, you will be able to create ad campaigns that will not only convert better but would also be more interesting for your target audience.

The last and most important component in measuring your marketing effectiveness involves the concept of measuring goals and the improvement of your processes. These are done through the metrics KPI. There are different KPI such as key performance indicators, cost per action, return on investment and others. The key performance indicators are those that tell you about your current performance and what is needed to achieve greater levels of success.

Metrics KPI, when combined with the other tools and measures that you have available, can be used to measure your marketing effectiveness and find out where you are currently standing. It is through this that you will be able to identify areas in your marketing campaigns that need to be improved on and those that would need to be completely changed. With this, you will have a better idea of how to gain new customers and how to retain those that you already have. Once you have this information, you will also have a better idea of what marketing campaigns need to be adjusted and improved on. By combining the information that you gather along with the metrics KPI, you will be able to have a better idea of what is working and what needs to be changed in order for you to improve on your campaigns.