In an attempt to feed the sales pipeline, many companies engage in a variety of marketing initiatives. As with anything, some efforts for lead generation are more effective than others. But without a way to measure your marketing campaigns return on investment (ROI), it can be very difficult to determine which of your marketing initiatives have been most effective.
At American, we have found that the best metrics are those that allow us to understand the quality and quantity of lead generation. For example, like most businesses, we utilize online advertisement. One of the key metrics we have found valuable is our online advertisement click-through-rates and correlating them with new prospect quote form completion. It is especially valuable when we can break down the hardwood species that are being requested such as Cherry, Walnut, Red Oak, White Oak, etc. which can provide you further insights on market demand.
Here are a few tips on marketing ROI metrics that we have found valuable. They might help you as well.
Use the same metrics across the board. When you have a large company, it is always possible that different departments may rely on different metrics to measure marketing ROI. The problem with that is that it often leads to errors and incorrect measurements.
We have found it valuable to identify a few key metrics that allow members of our team to capture ROI at a glance. This allows uniformity across the business when reporting. Whatever metrics you choose, it must be embedded companywide so that the marketing department and the rest of the company can understand the impact of a marketing initiative.
The marketing funnel. In contrast to the sales funnel, the marketing funnel gives a company a chance to analyze how the brand is moving from the beginning stages of market awareness to the final stages of having brand advocates. The marketing funnel stages include.
- No market awareness
- Awareness developed
- Suspect open to trial
- Recent user but not a regular customer
- Repeat customer
- Preferred supplier
- Brand Advocate
Tracking impressions and engagement. When you track impressions and engagement you give yourself a comprehensive view of how effective your marketing campaign is. Impressions show the impact that your message has on your target market. Engagement brings to light the worthiness of the market content within that same market. You can use these metrics to replicate or improve your efforts in the future.
Integrate internal systems. In the quest to get verifiable, clean data to work with you must ensure that your sales and marketing systems are completely integrated. They must utilize the same fields that utilize common values so that these values can be passed back and forth as data is acquired. When you design your system to smoothly move data between systems you are able to personalize each prospect's experience and measure the impact of individual touch points.
The result is a personalized experience for the customer as opposed to a generic, cold, automated response. A personalized touch greatly increased the odds of a successful conversion rate.
As one could expect, with the increase and advancement of technology and universal metrics, it is easier than ever to track marketing ROI. It’s well worth the time, effort, and resources that are needed to understand what marketing efforts are working and how they should be reimagined, or adjusted in the future.
Have you had success measuring your marketing ROI?