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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How Cost Cutting Can Propel Your Business into 2014

Guest Author: Edward Hallinan

This article was written by Edward Hallinan on behalf of employee-benefits specialists, Unum. Edward is passionate about start-ups, having set up his own e-commerce music site and experience working for a digital marketing consultancy from the first day of its inception.

Scissors cutting costs

Infographic: Cutting Costs for Business

Good news! The latest research from Barclays and the Business Growth Fund has found that ‘one in five British companies can now be defined as ‘high-growth’’*. More specifically, the report also showed a 3.4% rise in the number of active registered companies in the first half of 2013 – glad tidings indeed for start-ups and SMEs.

But despite a clear bucking of the economic trend that’s blighted businesses for the last decade, now is not the time to act rashly. Indeed, the slump itself was caused by untamed growth, coupled with companies over-borrowing and over-spending. Indeed, that’s why the folks at Unum have collaborated with Clydesdale and Yorkshire Banks to create the following infographic.

Entitled ‘Cutting Costs for Business’, it goes on to detail just how flippant companies have got with their spending. It found that over 50% of SMEs will go at least 6 months before reviewing costs, with a shocking 14% never reviewing their spending at all! Just in the way you wouldn’t accept a new car insurance quote without consulting a Russian meerkat first, the same applies for businesses – well, perhaps without the meerkat.

As small businesses and start-ups are building from modest foundations, it’s even more pertinent to make sure your company is working at 100% efficiency. For instance, did you know that not only are 75% of all water charges wrong, but also those failing to switch gas and electricity providers could be paying up to 61% too much?

These alarming findings are detailed in the infographic, coupled with strategies to make your business more cost-effective. And while this gives a great insight into the best ways to cut costs, it is by no means a complete list. Just take social media as a prime example. Instead of spending thousands on double page spreads in newspapers which are then thrown away, why not immortalise your marketing and advertising efforts via the world wide web? By utilising Twitter and Facebook, not only can you reach millions in one click (according to Statistic Brain, there were 554,750,000 active registered Twitter users as of July, 2013) but these interfaces are completely free to use!

By employing savvy techniques and updating marketing strategies in this way, coupled with adopting basic cost-cutting principles, you have every chance of rocketing your business into the New Year. Not only that, but keeping stock of spending will allow for steady growth which can be maintained beyond 2014.

Cutting costs for business infographic

References:

* http://startups.co.uk/fast-growing-firms-on-the-rise-in-uk/

Scissors ‘cutting costs’ image courtesy of Patpitchaya at Freedigitalphotos.net

We’d love to hear your experiences and thoughts on this post, so please do leave a comment

Why good customer care is so important for small businesses

old vintage telephone representing customer servicesNever underestimate the value of good customer care and just how important it is to look after your customers. Poor customer service is a sure-fire way to lose a customer. Small businesses tend to have a smaller client base, therefore losing a customer can potentially have a significant impact on profitability.

70% of shoppers have stopped buying goods or services from a company after experiencing poor customer service andyhanselman.com

In order to develop and sustain a positive, long-term relationship with your customers you must ensure that your business is focused on offering a high standard of customer care. As a small online business you should be looking at your customers as your most important asset.

Take John Lewis as a renowned example of how customers are looked at as a priority. Excellent customer service is so much a part of John Lewis’s  business ethos that it is completely ingrained into their brand image. Consequently , John Lewis has an enviable  large, loyal and long-term customer base. Customer care is all about building enduring, positive relationships with your customers.

The benefits of  good customer care

81% of customers are willing to pay more for a better customer experience andyhanselman.com

Embracing the importance of customer care brings with it a number of benefits.  For example:

  • Build loyalty and repeat custom. Offering good customer service is a key element in gaining loyalty and repeat business from your customers.
  • Lower costs and higher sales. Don’t forget it costs far more to acquire a new customer than it does to keep an existing customer. In addition, an existing customer is likely to spend significantly more than a new customer “statistically speaking, the cost of acquiring a new customer costs 5-10 more than retaining an existing one. Not only that, but repeat customers spend on average, 67% more” Chartered Institute of Marketing
  • You don’t need a big budget. As you’ll see from our tips below, you don’t need a big budget to offer quality customer care.
  • Gain competitive advantage. Offering your customers a positive experience can give you an advantage by differentiating you from your competitors.
  • Win referrals. Happy customers are far more likely to recommend your business to friends and acquaintances

Tips for building positive customer relationships

Customer care is about building positive, long-term relationships by offering the best service possible to your customers. There are plenty of ways small online businesses can develop their customer service offerings.

1. Communicate with your customers regularly

Communicating regularly with your customers shows them they are valued. The interactive nature of the web lends itself brilliantly to direct engagement with customers. It is the ideal environment in which to develop customer relationships by keeping in contact with customers through social media and email.  For example, simple things like sending  customers an order confirmation and dispatch email makes a big difference to how customers view  the efficiency of your service. And, using social media platforms is a great way to keep customers informed of new developments and exciting offers, helping build interest and loyalty in your business.

2. Encourage feedback

Enabling your customers to engage in tw0-way dialogue through opportunities for customer feedback is important. Your customer feels their opinions matter and you gain valuable insight into how your product or service is viewed and how it could be improved to increase customer satisfaction.

3. Respond to all of your customers

It is important that you respond to all your customers. No matter how small or insignificant the query may seem to you – it will be important to your customer. Not being responded to is probably one of the most frustrating things a customer can experience. As a small business it is not always possible to answer a query immediately, but try to make it a priority to respond as quickly as you can. In the meantime it is a good idea to acknowledge your customers query and let them know you will get back to them as soon as possible.

4. Deal with customer complaints quickly, efficiently and pleasantly

Nobody likes dealing with negative feedback or complaints. However it’s important that you address them as quickly and efficiently as possible. Listen to your customers’ grievances and deal with them professionally. Customers will stay loyal if their complaint is dealt with satisfactorily. Indeed, it can work in your favour since  “Happy customers who get their issue resolved tell about 4 to 6 people about their experience” .

5. Good manners cost nothing

Don’t forget whenever you are communicating with your customers to use simple, old fashioned good manners. Give your customers your full attention and don’t undervalue how a simple and genuine please and thank you can make all the difference to how a customer feels about their experience. Give your customers the service, care and attention you would expect to receive yourself and you won’t go far wrong.

6. Be consistent, make sure all team members are singing from the same song book

It is important to make sure it’s not just you engaging in a high standard of customer care. Make sure any one else responding to your customers are fully briefed and on-board with what you expect from them in terms of how they communicate with customers. Customer care must be consistent – no matter who it is from your business that is responding.

We would love to hear your own experiences and thoughts on this post, so please do leave a comment.