The accounting doesn’t lie!
If your marketing programs are working, revenues will eventually increase. It’s that simple. But, the period between your marketing strategy execution and revenue increase is going to vary.
While marketing’s main purpose is to improve the financial performance of your business, you can measure the success of your marketing efforts through a number of different metrics, what we regard as Key Performance Indicators. We will come onto this in a bit.
With any marketing strategy that you create, the first thing you will notice is how people respond to the campaign.
Tracking the responsiveness to your marketing campaign is one of the first steps that will help towards evaluating success.
This can be tracked through a number of ways such as website traffic, the number of calls into your company, how many people signed up for your newsletter and more.
In generating new business, everyone’s priorities and objectives will differ depending on your business—there is no one-size-fits-all approach.
So we can see how responsive people are to a marketing campaign but how do we really determine the success of it? Let’s head back to those KPI’s, or Key Performance Indicators.
Key Performance Indicators
Let’s have a look at a local example here which will work as a good example. Company ABC is a spa training center here in Bali who are looking to promote an upcoming workshop. They have some very clear goals in that they want to get people to sign up for the workshop.
This type of goal makes things very easy to assess over a goal that is something like …”we want to increase business”. How would you begin to evaluate an increase in business? It is too broad and much more complicated to assess.
So for this campaign there is a clear timeline, in this case just sixty days before the workshop starts and so we have a clear KPI; in this example it will be someone signing up for the workshop.
Using a simple Pay Per Click strategy with Facebook Ads and Google Ads it is then very easy to see what web traffic came to the sign up form along with who actually signed up for the workshop. With a single webpage dedicated to the workshop we can also track who comes through that avenue also.
But now we must not fall into the trap of assessing the activity over the outcome. If you are not 100% certain that the strategy is focusing the right audience then you must be careful. We want to look at the total signup for the workshop as this is our KPI, not the activity associated with the advertising.
It doesn’t matter how much you’re spending if those marketing dollars are aimed at people who don’t *purchase* the workshop.
It doesn’t matter how much you’re spending if those marketing dollars are aimed at people who don’t purchase your services.
So success in this case is determined by how many people signed up, and that is an internal decision by the company if they deem it to be successful.
With such a structured campaign, having the data from this campaign will allow them to evaluate future campaigns when it comes to the activity and the KPI’s. The long term aim is to improve the success of our marketing efforts, and evaluating our efforts through the use of Key Performance Indicators is an important step.
Any marketing strategy that you undertake will need to revolve around your KPI’s and your ability to track how well they perform. Start out by understanding your campaign goals and setting those KPI’s so you know what success means to you. It then a case of just tracking the data for those KPI’s and balancing them against your initial marketing campaign goals.
It sounds too simple? Perhaps. Not all marketing campaigns are simple to track. If you are note sure how to track your marketing campaigns then it’s time to reach out to a marketing expert.
Let us know how you have tracked your marketing campaigns and what techniques you found worked best for you.