Marketing Metrics for Modern Strategies: Three Basics for Measuring Your Marketing Investment

ROI Marketing Metrics

You know you should be measuring the value of your marketing, but youre not sure how to go about doing that, exactly. Fortunately, marketing is a science, not a guessing game. You can measure it like you would anything else. Heres how. 

 

Identify Your Revenue Attribution

Marketing companies, like Yodle.com, recommend that you focus on your revenue attribution when tracking and measuring sales and marketing investment. In other words, where do your sales come from? If you pump a lot of money into your Adwords platform, do you know whether its paying off? It is paying for itself? If you dont know this, you should.

Likewise, you should have an understanding of the weighted-average ROI for all marketing and sales initiatives. So, If 60 percent of your marketing dollars are spent on pay-per-click, you should have a system in place to measure the total efficacy of your marketing dollars, with 60 percent weight given to the PPC platform.

You’ll also need to make sure that your shopping cart software is capable of integrating third party tracking scripts into the order completed web page to pass back sales metrics to your Adwords marketing platform to accurately track ROI.

Does all of this sound complicated? It can be, and thats often why small businesses hire a marketing firm to do this for them. Marketing is a skill – a vastly under-appreciated skill. Its not something that most people can successfully do all by themselves.

Coordinate Your Sales Team

Sales and marketing departments rarely talk to each other, even though theyre on the same team. Heck, their jobs depend on each other. So, show them exactly how dependent they are on each otherssuccesses. Tie compensation and bonuses to their counterparts success.

Show the sales department the impact they have on their marketing brothers, and vice-versa. Once each department fully understands the impact on the other, you can then better coordinate marketing dollars between the both of them. Instead of competing against one another, they will trade off finite marketing dollars and work together to allocate those dollars for maximum revenue and profits, regardless of how much each department gets.

Use Data To Drive Marketing

Sometimes, its hard to know what the data is telling you. It is, after all, just numbers on a screen. But, with that in mind, there are some things you can glean from your data sets. One of those things is the click-through rates on links, open rates of emails, sales, and visitor flow.

Of these, visitor flow is the least understood, but possibly the most helpful analytic you could measure and analyze. Visitor flow means how visitors move through your site. So, for example, if a visitor lands on your homepage, and goes to your Aboutpage, and then stops at your order page without ordering anything, something between the homepage and the Aboutpage prevented the sale.

Of course, theres always the possibility that the price was too much for the customer, but that raises the question: why was the prospect not sold?Maybe you need to sculpt your Aboutpage and homepage to better anticipate shopping cart abandonment or bouncing on the sales page. Maybe you could take the links to the sales page off the Aboutpage, if theyre there. Or, dont allow people to click directly to the order page if theyre on the home page. Or, create a pre-sellon both pages or at least one of those pages.

Guest Author: Loretta Martinez Loretta has decades of experience in marketing. With innovations and trends keeping her busy, she often blogs about the basic tips and tricks to successful marketing plans.

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One thought on “Marketing Metrics for Modern Strategies: Three Basics for Measuring Your Marketing Investment

  1. Pingback: ShopIntegrator | 7 Great Tools Small Businesses MUST Use

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