- Start with a clear goal and objective.
- Decide what metrics to use.
- Establish a timeframe.
- Set a schedule to monitor campaign results.
- Choose marketing tools to support your goals.
- Use a marketing dashboard to present your results.
- Benchmark your performance data.
One of any company’s largest and most crucial outlays will be on marketing. The key to optimizing any process is being able to measure your advertising and digital marketing campaigns accurately, so you need to be aware of the important metrics to monitor.
The most obvious is undoubtedly your ROI (Return on Investment), as investing £1k in a campaign that only generates £500 in sales or revenue is by no means a successful marketing campaign. However, if your campaign cost £1,000 and brought in $5,000 in sales, you achieved a 400% ROI, which is fantastic in anyone’s book.
However, you should also check that you’re filtering out your own internal traffic when using these metrics (as well as that from your mother and other friends, unless, of course, they’re going to sign up for whatever you’re offering!). Additionally, you must create blacklists to eliminate referrals from questionable websites (which seem to be growing daily) and research ways to filter out referrals from bots.
Advanced Campaign Analysis: Measuring Campaign Effectiveness and Long-Term Impact
What metrics can you use to measure a marketing campaign?
1. Return on investment (ROI)
ROI is a popular metric that compares the amount you spent and invested in your marketing to the amount you received in return. For instance, the ROI is $4,000, or 400%, if a social media marketing campaign for sneakers costs $1,000 and generates $5,000 in sales. The higher your ROI, the more successful the investment.
2. Cost per win
When comparing campaigns to determine which one performs better, cost per win compares the cost of each sale to the overall cost of marketing. For example:
3. Cost per lead
Cost per lead, which emphasizes the quantity of leads rather than sales or victories, gauges the financial success of marketing campaigns. For instance, the cost per lead for a $1,000 marketing campaign for organic coffee that resulted in five sales from ten leads would be $100.
4. Cost per conversion
This metric is crucial for businesses engaged in direct online sales, especially those that allow customers to add items to virtual shopping carts. The cost per conversion metric calculates the expense involved in turning a website visitor into a paying customer.
5. Customer lifetime value
This metric computes the average sale value of a customer, the average number of times they make a purchase each year, and the average number of years they remain a customer. Consider a hypothetical customer who, on average, spends $100 per purchase, makes four purchases per year, and anticipates remaining a customer for five years. Their customer lifetime value would be $2,000.
6. Cost per acquisition
This metric measures the price incurred to acquire a new customer through marketing and advertising. Knowing the average lifetime value of your customers will help you decide how much to invest in acquiring new ones.
7. Conversion rate
The conversion rate, also known as the goal completion rate, gauges the number of website visitors who convert into leads or paying customers over the course of a campaign. For instance, a 10% conversion rate would be achieved if 1,000 website visitors in one marketing campaign week resulted in 100 leads.
8. Website traffic
Many marketing campaigns involve advertising on a company website. You can use total traffic figures to gauge the overall effectiveness of your website and contrast them with data from periods of time other than the marketing campaign. Regularly monitoring the traffic to your website can help you determine what campaigns are effective and when. When compared to computer users, you can even track traffic from visitors using mobile devices.
When a marketing campaign is underway and you notice a decrease in website traffic, think about troubleshooting For technical fixes, look for broken or inactive links.
9. Traffic by source
The traffic by source metric reveals the sources of your website visitors, including direct visitors, referral links, organic visitors, and social media links. By keeping an eye on this metric, you can decide where to put more effort or money into bringing in more visitors from that source.
10. New versus returning visitors
This metric demonstrates the long-term relevance of your website. Recurring visitors indicate that people find your website to be valuable enough to visit again. As you add content to your website, take a look at this metric to see how certain articles, campaigns, or advertisements are performing.
This metric counts all visits to your website, even if several come from the same user. For instance, you may count a customer’s morning and evening visits to the website as separate, unique sessions.
12. Average session duration
Some industries more than others can benefit from an average session duration metric, which counts the total time a visitor spends on your website. As people browse home listings, the real estate sector, for instance, frequently experiences longer session duration times. This metric can help you answer the following questions:
13. Bounce rate
The number of visitors who leave your website after only viewing the landing page is measured by the bounce rate. This can help you determine:
To keep visitors on your page and include links to pertinent content that relates to what you have to offer, think about including visual content, compelling calls to action, and For instance, a marketing campaign for the launch of a new product that directs users to the homepage of a website featuring the new product is more likely to have a lower bounce rate than one that does not.
14. Exit rate
The exit rate differs from the bounce rate because it tracks the exact page that a user left the website after visiting multiple pages. This can help you determine where a reader lost interest and strengthen your content overall.
15. Page views
The total number of pages viewed is this metric, but it’s important to note that returning site visitors count each time. This metric is useful because it can tell you whether all of your website pages are gaining visitors or if some of them perform better than others. Knowing this information can help you decide where to place specific marketing ads.
Impressions, or the total number of views of your content and advertisements, are a crucial marketing campaign metric. It tracks every time someone looks at your advertisement, even if they do so repeatedly on different digital platforms.
17. Social reach
As opposed to impressions, this metric shows you how many people on social media actually saw your content. Even though not everyone who views your content will engage, a high number in your social reach metric is still positive; therefore, the wider the reach, the better for greater engagement. You can grow your social reach by:
18. Social engagement
The percentage of your marketing campaign’s social reach that interacts with a particular component is known as social engagement. This may include:
19. Email open rate
Email advertisements are a mainstay of any marketing campaign, and this metric counts how many people open the email relative to the total number of recipients. The top reasons consumers open emails include:
By writing a compelling subject line, sending emails at the right time, and having a recipient list that is highly segmented to ensure relevance, you can raise your open rates.
20. Click-through rate (CTR)
The number of people who click on an advertisement’s content relative to the total number of impressions the advertisement received is known as the “click-through rate.” You can use this metric to determine how relevant your ads are to viewers.
21. Cost per click
Your overall marketing budget should consider the cost-per-click metric, which measures how much you spend each time a customer clicks on your advertisement. Overall, the lower your cost per click, the better.
How to measure success of a marketing campaign
Many of the metrics mentioned above are taken into account when determining the success of a marketing campaign, and a strategy must be developed to determine which KPIs are most appropriate. The following five steps will help you determine whether a marketing campaign was successful:
1. Create a goal to achieve
Setting a goal to measure and initial metrics to compare is the first step in a marketing campaign strategy. Consider using the SMART goal technique:
2. Set a firm time frame
Setting a firm deadline, whether it be for 14 days or 14 months, gives you the parameters to gauge your success and fosters a sense of urgency. To track and measure data, time frames enable you to compare one month to the next or one year to the next.
3. Select success factors
Choose the success metrics for your marketing campaigns that you want to track, such as sales, new user acquisition, social media impressions, newsletter sign-ups, or repeat purchases. Outlining specific and quantifiable results helps you measure success later. Here are a few examples of objectives that involve particular, quantifiable elements:
4. Give specific details
Giving as much information as you can about your KPIs enables teams to understand what to concentrate on and how to accomplish the objective you set. For instance, the goal of “Grow target audience followers” is ambiguous and leaves room for interpretation. In contrast, the goal is more specifically stated in “Grow target audience followers on all four social media channels by 30% within three months,” which provides more details.
5. Draft a marketing measurement template
Consider making a template with all of the KPIs you intend to track and measure once you have determined which metrics match the objective of your marketing campaign and the time frame you want to measure the results within. Include items like: