How Do You Measure the Success of Your Marketing Strategy?
3 Steps in Creating Measurable Marketing Results
Every business has to market its products and services to attract new customers and grow revenues. Between blogging, advertising online and offline, referral marketing, and every other strategy you’re using to talk about your business, how do you know what works? There’s no right answer for every company, which is why you need to set performance indicators, track results, analyze the information, and revise your marketing plan accordingly.
Set Key Performance Indicators
You should have a goal for every marketing strategy you implement. For example, you may want to see an additional $1,000 in revenues for every $500 spent on advertising or want to get 100 new likes on your Facebook page for every $10 spent on Facebook ads. In the beginning, there will be some guesswork, but without a goal, you won’t know if you’re wasting your money or making progress. And if it ends up costing you $20 for 100 new likes on your Facebook page, you’ll have to ask yourself if it’s worth the cost.
Track the Results
When you advertise online, it’s easy to track the results with analytics. You can even figure out which searches resulted in a purchase or a filled-out contact form. Tracking sales that occur from offline advertising or referral marketing are more difficult ... unless you ask your customers how they heard about you. It’s important to collect as much information about your customers as possible to help you figure out what’s bringing in leads and whether those leads convert to paying customers. You may also use indirect data. For example, did those new Facebook likes lead to a sales increase?
Analyze the Information
Unless you have an unlimited marketing budget, you’ll want to find out which method attracts the most high-quality customers for the lowest cost. That means you’ll have to spend some time experimenting and actively analyzing the results. But if one method isn’t working, that could mean you need to tweak it. For example, Google AdWords only works if you know which keywords to use and which ones to block.
Your marketing strategy is bound to change over time. What works today may not work next month. It’s a good idea to keep track of the results you’re getting and change course if necessary. And for best results, you may even want to hire a marketing expert to avoid wasting your marketing budget on the wrong things.