How To Measure Marketing Effectiveness And Present It To Stakeholders
- September 21, 2021
- Content Marketing, Digital Marketing Strategy, Email Marketing, Marketing Statistics, Social Media Marketing
You can apply marketing strategies all day, but if they’re not effective, those efforts don’t matter in the long run. Measuring marketing effectiveness is crucial to improving your digital marketing strategies and increasing conversions over time. Are your methods meeting the KPIs? Are you helping your clients reach short and long-term milestones? Use each campaign to learn and grow.
By measuring marketing effectiveness, you can better ensure a high ROI or return on marketing investment, ROMI.
Measurement of marketing effectiveness
How is marketing effectiveness measured? Sure, you can look at traffic or sales metrics, but it goes further.
Ultimately, the KPIs you choose to measure can vary by company and strategy. But there are a few metrics to pay attention to when measuring marketing effectiveness.
First, when considering revenue, look at how much of the revenue is a direct result of marketing efforts. This can help provide clear, high-level information about the success of marketing efforts for the business.
Next, consider the ROI of the pipeline or pipeline growth. Are you continuing to generate more and more leads through your marketing efforts? Otherwise, your marketing effectiveness could be plummeting.
Conversion rates are also a strong KPI to check out. Keep in mind that impressions, views, and even clicks don’t necessarily translate into a successful marketing strategy. If users click but don’t make a purchase, why aren’t they converting? Conversion rates can provide a better insight into the success of your marketing.
When considering long-term effectiveness, look at retention rates. Are customers staying with your business for the long haul or are they making some purchases and leaving? Don’t forget to continue marketing to existing customers while reaching new audiences at the same time.
Marketing effectiveness metrics
The types of metrics you consider can also vary by medium. Marketing efforts used to focus on tangible but harder-to-measure media, such as billboards, magazines, or television.
Today, digital marketing is front and center, and with it comes a wide range of things to measure to determine effectiveness. Below are the top three marketing segments and metrics to consider for each.
1. Effectiveness of social media marketing
Social media marketing is newer on the scene, but it can be huge for business revenue and lead generation. Measuring the effectiveness of social media marketing is pretty straightforward.
It’s easy to track the number of inquiries or leads through closed content on social media, and engagement can also be tracked through reruns/shares, comments, and follower count.
The conversion rate also plays a role here. If your account has a high number of followers but comparatively low engagement rates, you can start investigating where to tailor your social marketing strategy to improve engagement, leads, and revenue.
2. Effectiveness of content marketing
Content marketing is extensive, with marketing options through a website, videos, articles, courses, and other digital content. The goal is not to say “ Hey, buy my product and interact with my brand! But rather to provide valuable informational content for customers.
Because there are so many methods for content marketing, the measurement of effectiveness can vary widely depending on the source in question. You can check the conversion rates from your website to your paid online course, or you can consider participating with your informational video or webinar.
3. Effectiveness of email marketing
Email marketing is thriving. There are a number of metrics to consider when measuring the effectiveness of email marketing with external stakeholders. First, you can review the delivery, open, and click rates.
High delivery rates mean that your emails are reaching inboxes, but they are not solely dependent on this metric. Open rates are important, as a low open rate can reveal that you need to focus on writing shorter, more fascinating subject lines.
Of these three, click-through rates are arguably the most important. Do potential customers click the links in the email or open the email and then delete the email? Click-through rates offer a greater chance of conversion into income. Conversion rate is again important here and can help measure marketing effectiveness for emails, content, social media, and traditional marketing methods.
How to Present Marketing Effectiveness
So you know how to measure marketing effectiveness, but what is the best way to share this information with external stakeholders? An insightful marketing report can show customers exactly what impact last quarter’s marketing campaign had on business.
These metrics can also be used to request a larger marketing budget or determine strategies for the future.
Here’s how to prepare your presentation, based on the data to be included, and how to organize it to truly show marketing effectiveness.
Data to include
Typically, a marketing report will review quarterly campaigns. First, you want to include your marketing strategy goals for that quarter to compare your actual results with your expected results. Include all marketing methods, such as content, social media, and/or email, and the KPIs that go with them.
Also, include market research to identify the target audience within the report and make sure external stakeholders know why your strategy is targeting this specific audience through these specific methods.
The KPIs mentioned above, such as conversion rates, social engagement, revenue related to marketing campaigns, click-through rates for emails, and customer retention rates, can be included in the report for external stakeholders.
Organize the presentation
The presentation should be a sensible roadmap, starting with the objectives and expected results and following the metrics measured for each type of marketing. Goals can include traffic numbers, revenue, customer satisfaction, or lead generation.
Organize metrics by social media, email, content, and any other inbound or outbound marketing you’ve searched for during the quarter. You can also write down specific goals and results for each type of marketing.
Be sure to include explanations. Share what you are doing well and why; Also describe what is underperforming, why, and how you plan to approach the next quarter.
KPIs to demonstrate effectiveness
Again, KPIs are crucial to share with external stakeholders as they will clearly show marketing effectiveness.
For content marketing, show lead generation, conversion rates, bounce rates, and even SEO-related metrics like page rank on search engine results page (SERP).
Email marketing should describe delivery, open, and click rates. You can also analyze the bounce rate, both from emails that were retrieved from unavailable email addresses and from pages on your website that include email logs. Additional email marketing KPIs to consider are the number of emails sent, new subscribers for the quarter, and unsubscribes per email sent.
Social media insights can also focus on lead generation and engagement rates. As social media continues to develop, some revenue rates will be measured directly from social media, as platforms add shopping features.
Measure marketing effectiveness to inform objectives
You can spend weeks putting energy into an email marketing campaign that just isn’t generating the leads you expected, while leads are reaching through social media despite a lack of focused efforts there.
Without reviewing and analyzing your marketing strategies, it’s hard to know where to best channel your time, creative energy, and budget to continue to drive your pipeline and revenue.
Marketing effectiveness uses key metrics to identify the highs and lows of your marketing strategies so that you can share this information with external stakeholders and better inform future strategies and goals.
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