Marketing Effectiveness: How to Measure It & Present to External Stakeholders
You can apply marketing strategies all day, but if they aren’t effective, those efforts don’t matter in the long-term.
Measuring marketing effectiveness is crucial to improving your go-to strategies over time. Are your methods hitting KPIs? Are they helping your clients reach short- and long-term milestones? Use each campaign to learn and grow.
By measuring marketing effectiveness, you can better ensure high ROI or return on marketing investment, ROMI.
Measuring Marketing Effectiveness
How do you measure marketing effectiveness? Sure, you can look at traffic or sales metrics, but it goes further than that.
Ultimately, the KPIs you choose to measure can vary by company and strategy. But there are some metrics to pay attention to when measuring marketing effectiveness.
First, when you consider revenue, look into how much of the revenue is a direct result of the marketing efforts. This can help provide clear, high-level insight into how successful the marketing efforts are for the company.
Next, consider pipeline ROI or pipeline growth. Do you continue to generate more and more new leads via your marketing efforts? If not, your marketing effectiveness might be falling flat.
Conversion rates are also a strong KPI to review. Keep in mind that impressions, views and even clicks don’t necessarily translate to a successful marketing strategy. If users are clicking but not following through with a purchase, why aren’t they converting? Conversion rates can offer a better look at the success of your marketing.
When considering long-term effectiveness, look at retention rates. Are customers sticking around with your company for the long haul, or are they making a few purchases and leaving? Don’t forget to continue marketing to ongoing customers while also reaching new audiences.
Marketing Effectiveness Metrics
The types of metrics you consider can also vary by medium. Marketing efforts used to center on tangible but harder to measure media, like billboards, magazines, or television.
Today, digital marketing is front-and-center, and with it comes a wide array of things to measure to determine effectiveness. Here are three top marketing segments and metrics to consider for each.
1. Social Media Marketing Effectiveness
Social media marketing is newer to the scene, but it can be huge for company revenue and lead generation. Measuring marketing effectiveness on social media is pretty straightforward.
It’s easy to track the number of inquiries or leads through gated content on social media, and engagement can also be tracked through reposts/shares, comments, and follower count.
Conversion rate plays a role here too. If your account has a high follower count but comparatively low engagement rates, you can start investigating where to tailor your social marketing strategy for improved engagement, leads and revenue.
2. Content Marketing Effectiveness
Content marketing is vast, with options to market through a website, videos, articles, courses, and other digital content. The goal is not to say, “Hey, purchase my product and engage with my brand!” but rather to provide valuable, informational content for customers.
Because there are so many methods for content …read more
Source:: HubSpot Blog
