What gets measured, gets done! With the plethora of marketing diagnostic tools available today, its measurement has grown more precise. In this post, we share a list of must-have marketing measurements for small businesses.
1. Cost per lead
It’s the most basic measurement on your dashboard. If you gained 5 sales from 10 leads on a budget of $1000, each lead cost you $100. Further investigation may be needed to ascertain this effectiveness by contrasting it with previous campaigns or industry standards.
2. Cost per win
How much did you spend to gain those 5 sales above? Using the same example, you would have spent $200 per win. Again, to address the true value of this expenditure is to contrast it with previous campaigns or industry standards. A more detailed analysis can be done by looking at pricing and gross margin.
3. Incremental sales
It only makes sense for every marketing campaign to contribute to increased sales. Occasionally, a new marketing campaign is undertaken because of a change in strategy. As such, measuring incremental sales will reveal the effectiveness of it too.
4. Omnichannel measurement
It is not necessary for customers to make a purchase from the channel they first saw your ad. They might have seen it on your Facebook page but bought it on a shoppable post on your Instagram. Omnichannel measurement is increasingly important as a result of this. Google Analytics Multi-Channel Funnel and Attribution Modelling enables businesses to measure the contribution of different channels used.
Finally, the measurement that is thrown around a lot in marketing meetings – return on investment, or ROI. In essence, it measures the sales revenue of every dollar spent on the campaign. If you had spent $1000 to generate a sales revenue of $5000, your ROI is $4000 or 400%. This gives you a good overall view of your marketing campaign’s effectiveness.
It can be tempting to deploy the vast array of marketing tools and strategies available today. But before you plunge into any of them, make measuring your marketing a habit first. To learn more, connect with us.