Sawmill Analytics - Techjockey.com
Guest Writer: Surjoeep Bose
Looking at The Wrong Marketing Metrics? Get Help
“Too much of anything is bad”
The average marketer has a lot of data to skim through when it comes to marketing. Impressions, likes, lead generation techniques, conversion rates, etc. are just some of the many metrics that marketers have to go through in order to assess their efforts. And the aforementioned metrics are just the cream of the bunch, there are a lot more that they have to play with.
Given the volume of metrics that marketers have to go through, it’s likely that they end up looking at the wrong ones to judge their success. As a marketer, you have to know which metrics to avoid at all costs and which ones to track.
Image: You're So Pretty (youresopretty.com)
- “Feel Good” Metrics
- All Eyes on Quantity
- Prioritising Activity Over Results
- Overall Cost as a Factor
- Choose the Right Marketing Model
- Focus on Lead Qualification
- Track Customer Lifetime Churn Rate
Feel good metrics are those that marketers falsely use as success metrics. These metrics are usually likes and retweets aka factors that look impressive but aren’t much effective. Since these metrics are majorly visible for an ongoing marketing post/campaign, they are the one’s referred by marketers to justify how well they spent on marketing.
A key mistake that marketing folks often employ is to judge a campaign’s success based on quantity rather than quality. If a campaign generates a lot of likes and clicks, marketers see it as a hallmark of a successful campaign. In such cases, marketers ignore the quality of leads generated through the campaign. Doing so looks great only on paper as there’s more to show in terms of reach. But, such a campaign is pointless because the profit quotient ranges from low to nil.
What to do with 10k likes and follows on social media platforms if they don’t yield results accordingly? Unfortunately, a lot of marketers prioritise activity over results as it is a lot easy to measure. Much like the problems with prioritising quantity over quality, just looking at activity as a measure of success is pointless if you can’t justify the results it produces. The 10k likes on your social media ad isn’t of much use if the click rate is 1 for every 100 likes.
Further, you cannot judge the success of email marketing based on opening rate alone. A customer may simply open an email and not click on the link inside. Thus, just looking at the number of people who opened the email is inconsequential if they didn’t click on the subsequent product link inside.
The people running a company are more bothered about ROI on any process, and marketing is no different. For them, financial profit is naturally a bigger priority and if marketing can’t show quick results in terms of higher sales conversions, it gets classified as a budgetary strain. Judging marketing purely on finances is never a good sign because the end motif of marketing is different for different campaigns. A marketing campaign isn’t always driven for financial gain. Some marketing campaigns are run solely for the purpose of generating brand awareness and creating buzz around the USPs of its products.
The Right Metrics to Look Into
Now that you know the metrics you shouldn’t be concerned about, lets delve into the ones you should actually be measuring.
Cost Per Acquisition is an advertising term used to imply the revenue paid by an advertiser for acquiring one paying customer. Cost Per Click (CPC) is an online advertising model where a publisher gets paid every time a customer clicks on an advertiser’s link. Cost Per Lead (CPL) is an advertising term that implies the publisher get paid every time it delivers a successful lead to the advertiser. There are many more marketing models, which you can choose according to your specific business needs.
Knowing which marketing model suits your business needs, you can set a marketing budget, analyse ROI from advertisement and acquisitions. Based on your marketing requirements (whether you want customers to simply click on ads or if you want them to click and fill out forms/surveys to be leads) you can choose the right publisher platform where you can get the maximum number of clicks/leads.
Image: The MMIT (themmit.com)
As discussed previously, just because your ads are generating huge likes and impressions doesn’t mean squat besides looking good in a report. When you run a campaign, look at what happens after the visitor has clicked on your ad. Analyse how and where your leads are coming from. Did they come directly to your page or visited your page through a referral? Understand what they did after arriving at your page- Closed the webpage within a few seconds and moved on or spent time on your webpage and explored it? Among the ones who stayed, how many ended up becoming leads? Answers to these questions can ensure streamlined sales funnel and higher conversions.
One of the primary purpose of marketing is to generate leads for your sales team. To that end, it is important from a marketing standpoint to analyse your converted leads and measure their value as customers. Are they one-time customers or repeat customers? How often do they visit your platform? If most of your successfully converted leads are one-time customers, then you have to double down on post-purchase nurturing. Lead generation won’t matter if customer repeatability is quite low. After all, studies have shown that it is cheaper to retain customers than to acquire new one.
If you were using the wrong metrics to judge success, there’s plenty of time to course-correct your marketing strategy using our list of the right metrics.
Surjoeep Bose: Surjodeep is a Content Writer at techjockey.com. When he isn't writing content for blogs, he spends his time channeling his ADD into daydreaming. He's been writing content since 2013 when he started freelancing.