Marketing ROI isn't all cut and dry these days. This deck gives you a brief run down of 9 things you really need to thinking about in planning the measurement of your marketing activities across all sales channels.
9 Key Marketing Metrics Every Company Should Measure
9 Key Marketing MetricsEvery Company Should Measure
Organizationsshould begin tostandardizemarketingmeasurementsacross their:- sales channels- business units- media
With standardized measurement, you can getcloser to the more complex process of tracking:- Corporate Brand Equity- Market Share- Marketing ROI- Product & Customer Profitability
Here are the 9 Key Marketing Metrics Every CompanyShould Measure…
Cost to Generate Traffic Multichannel marketers are tracking the costs to generate traffic to their sites from all possible sources. These often include the costs to complete the transaction, which can include a call center or the technical support of the site itself.
Marketing Spending MetricsMarketing SpendingMetrics are often looked atto try to establish the ROIvalue of incrementalspending.Some of the measurementsin this area include cost perimpression, reach, frequency, share of voice.
Visitor Acquisition KPIsVisitor Acquisition KPIs are used to understandthe health of the sales funnel.Types of things you’d need to define first:• What is a visit?• What is the source of the visitor?• What is a return visitor?• What is a unique visitor?Tracking sources often requires the integrationof multiple reporting tools.
Site Effectiveness Measurements Look at the conversion effectiveness of the site or channel. The sales funnel is critical here. How efficiently can a visitor be turned into a customer?
Conversion MetricsDefinitions are criticalin conversion metrics – especially ifthe conversions of one channel areto be compared to others.What does a conversion mean?The problem of properly attributing conversions totheir sources is common and must be consistent acrosseach channel.
Buyer Metrics Buyer Metrics includes the frequency of purchases, or the retention rates of customers that can be rolled up to overall market share, brand equity and/or customer lifetime value. The most quoted Buyer Metric is typically the Average Order Value, or the AOV, which is used to understand and compare different groups of buyers.
RevenueMultichannel and e-commercemarketers track revenue carefullyto compare the margin generatedfrom each channel, to determinethe value of incremental sales, andto guide pricing and promotiondecisions.
Customer Loyalty & ProfitabilityCompanies use these metrics to understand thevalue of their individual customers, regardless ofwhich sales outlet they have chosen.Again, this is an area where definitions are criticalfrom one channel to the next.The methodology for the measurement of loyaltyand customer-level profitability can varyconsiderably from company to company, dependingupon the purchase dynamics of the product.
Profitability and ROICategories of Metrics can include:- Channel margin from each channel selling different products.- Performance compared to sales target- Net Profit- Return on Sales- Return on Investment- Net Present Value- Return on Marketing Investment
And so…Any one of these 9key marketingmetrics can bechallenging to reachwithout integrateddatabases and marketing technology.
Creating clear definitions across departmentsand channels is critical.
As data and tools begin to converge, more and more marketers are building their ability to measure these key performance indicators and use them to make smarter decisions across the marketing organization.
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