The advancement of technology in today’s world has helped measure marketing effectiveness to be better. Every marketing strategy and decision should be smart and based on insights, data, and metrics that are available to us. Having access to so much data should be of use for the future improvement.
However, when we have so much data, it’s sometimes difficult to determine which metrics are really important. It can happen that you’re looking at the wrong metrics or even, too many metrics. It’s essential to know what metrics to look for when measuring marketing effectiveness. Below are some of the most important metrics that will help you measure marketing effectiveness.
Marketing contribution to revenue
We’ll all agree this is an important one. What is the percentage of your company’s overall revenue that can be linked to your marketing team’s work? Depending on how high the number is, the better your actions and plans are. However, things like website activity or brand awareness may take more time to bring revenue to the company or they can bring benefits in a non-financial way.
Pipeline growth and acceleration
What marketing activities do you have implemented that help pipeline growth and acceleration? Are they good enough? How do they impact the growth and acceleration? Well, in order to have an overall effectiveness, you and your team need to be able to fill the pipeline with new leads and keep them moving down the funnel.
Growth and acceleration always go together, because having one without the other is a warning sign that something isn’t right and that you, perhaps, need to reconsider your activities.
Conversion rates can be extremely helpful and can give you various different pieces of information. It really depends on where you’re looking. For instance, you may measure conversion rates for any channel to see whether your efforts pay off. Or you may measure conversion rates based on a stage in the buyer’s journey. This will help you find out whether your campaign is effective.
Cost per lead, cost per opportunity
Do you have a lot of good leads? Does your marketing team do an excellent job of converting them? If you do, the next question would be how expensive is it? If the cost is too high, how effective are the efforts? It’s absolutely necessary to ask these questions at some point.
On the other hand, investing upfront may produce more valuable leads and opportunities. In the end, it’s on you to balance cost with quality and results.
Brand awareness results are long-term and you can’t expect an immediate return. One way to see the effectiveness of your brand awareness is to see it in combination with your pipeline. If your pipeline is lacking and brand awareness is strong, you should think about ways to use the awareness to have more conversions in order to grow your business.
It’s important to know that no one metric is enough to tell you how effective your marketing strategy is. Using the metrics mentioned above will help you understand what’s working and what’s not.
Measure Your Marketing Effectiveness with VMG
If you want to learn more about how to identify effective marketing strategies and marketing plans, feel free to contact Venerate Media Group at (888) 486-4130! We have the right solution for you.