April 13, 2024

Molnpost

Live Finance

How to measure results from your marketing strategy

How to measure results from your marketing strategy

 

1) Return on investment (ROI)

 

ROI is a standard metric that evaluates how much you invested and spent on your marketing relative to how much you earned back. According to Danny Veiga, with only present costs considered, ROI may also help you understand how much profit each new project at work would generate depending on its predicted rate of return. For example, if a social media marketing campaign for organic coffee costs $1,000 and brings in $ 5,000 worth of sales, the ROI is $4,000 or 400%. 

2) Cost per win 

Cost per win measures the expenditure of each sale. Therefore, marketers can use cost per win to compare campaigns to one another and determine which performs better. For instance, five sales are generated with a $1,000 budget, so the cost per win is $200.

3) Cost per lead

Cost per lead, which emphasises the number of leads rather than sales or wins, gauges the financial success of marketing campaigns. However, since it factors out the sales process, it doesn’t measure the quality of leads. For example, a $1,000 marketing campaign for organic coffee that generated five sales from 10 leads would have a $100 cost per lead.

4) Conversion rate (or Goal completion rate)

Just as you measure your website’s conversion rate, which indicates the percentage of visitors who have converted into leads or customers, you are also suggested to evaluate the same for individual campaigns. For instance, if a campaign draws 1,000 visits, from which ten leads are gained, that implies a 1% conversion rate. You can significantly infer the website quality from the conversion rate, bounce rate, and other behavioural information.

5) Customer lifetime value 

Customer lifetime value can tell the total revenue a business can expect from a single customer by utilising the formula CLV = Average Sale x Number of Repeat Sales x Expected Retention Time x Profit Margin. You can efficiently determine how much you need to spend on customer acquisition with customer lifetime value. You will likely lose money if your customer acquisition cost exceeds your customer value.

6) Website traffic

Advertising on a business website is a common component of marketing strategies. However, you can assess the overall effectiveness of your website using total traffic data and compare it to traffic figures for periods other than the marketing campaign.

7) Purchase Funnel 

A marketing funnel outlines the interaction between you and your customers. Moreover, marketing funnels show the paths to conversion from the first moments someone hears about your company through the point of purchase and beyond. Analysing a marketing funnel lets, you know what strategies should be applied to influence consumers at certain stages. By measuring your funnels, you can achieve excellent sales, loyalty, and vital brand awareness.

8) Impressions

Impressions reveal the frequency your target audience has visited your content or campaign. Even if a user views your advertisement more than once across different digital channels, it records every instance. There are several ways to track the impression, including pay-per-click appearances; the number of times a meme appears on social media; on-site views of internal calls-to-action; and access to graphic materials through third-party sites, such as Pinterest or Google Image Search.

9) Multi-channel funnels and attribution 

It is unavoidable that your campaigns and marketing channels can overlap when you want to measure them independently. As an illustration, a consumer may discover your website via social media and revisit it using a search engine. To solve this problem and see a more accurate image of your marketing, you should refer to multi-channel funnels and attribution modelling.