MARKETING

Growing BusinessMARKETING

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  • Marketing ROI

    Game Plan

    In-Depth

    Marketing Success Metrics

    According to a survey by marketing solutions firm Marketo, less than half of marketers know how a 10 percent increase in their marketing expenditures would impact their sales. More surprisingly, 20 percent of marketing executives don’t even bother to track any metrics at all.

    But by understanding which success metrics are important to your marketing campaign, you can ultimately calculate your overall return on investment, or measure it by specific campaign or a group of campaigns.

    Analyzing these metrics can help you decide if new media opportunities, new pricing strategies, different messaging approaches, or even developing new product lines are worth considering.

    Selecting appropriate metrics depends on your advertising and sales model. For retail and online merchants, impressions and sales are most relevant. If your sales model is more complex, requiring longer-term and more extensive follow-up, lead conversion and sales metrics such as cost-per-lead and cost-per-sale become more important.

    And in some cases, you’ll want to evaluate the impact of engaging with customers, prospects, and other key influencers to estimate your return on engagement (ROE).

    Some metrics that marketing executives track include:

    • Overall impressions
    • Lead generation response rates
    • Cost-per-lead
    • Cost-per-sale
    • Return on investment (ROI)
    • Lifetime value of a customer
    • Return on engagement (ROE)
    • And many others

    You can use these metrics to evaluate marketing initiatives at many levels to understand your performance by audience segment, product, media, and many more.

    Game PlanGame Plan

    Game Plan

    • Determine which metrics are most appropriate to your sales and marketing process. This brief guide from Oracle/Eloqua may help.
    • If you have existing marketing data, retrieve and review it so that you can use the data to create a baseline or benchmark for evaluating future performance.
    • Decide on specific methods you will use to track data, calculate rates of change, and evaluate long-term performance. You can use something as simple as an Excel spreadsheet or choose a more sophisticated technology platform. This list from Information Week presents some alternatives to consider.