Marketing is essential to any business. While there are many types, objectives, and avenues of marketing, all can be measured in some fashion. Measurement is not always financial, but knowing the impact of your marketing can drastically change how you market your business, and ultimately the success of your business.
Why should I measure?
Marketing, while important, can be costly. The debate about whether marketing is an expense or an investment is an ongoing one. The bottom line is that marketing costs money, and anything that costs your business money should be measured for performance. Even if you see "success" in marketing, if you aren't measuring the results, you’ll never know if you’re getting the most for your marketing dollar. Because performance can’t be improved without knowing how you’re performing in the first place, measurement is vital in any marketing effort.
How do I measure my marketing?
I won't dive into every detail of how to measure individual marketing efforts. Instead, I’ll identify a basic process that can be applied to all of marketing:
- Establish the purpose of the campaign.
- Determine which metrics you wish to measure.
- Figure out how to measure those metrics.
- Identify what you hope to learn from the data.
The key is to begin with the end in mind. By taking extra time during your campaign’s planning stage, you can easily measure the campaign’s performance and use the data to dramatically improve the performance of your future marketing.
What do I measure?
After you’ve identified the campaign’s purpose, you’ll be able to easily determine what to measure. For example, demand generation marketing can be measured by Return on Marketing Investment (ROMI), loyalty marketing can be measured with churn rate, and branding campaigns can be measured with brand awareness or recall.
The short answer: what you measure depends on your campaign’s goals.
What tools should I use to measure?
Although countless tools are available to measure marketing performance, here are a few of my favorite ones.
Google Analytics: For my business, Farmore Marketing, Inc., our website is the core of our sales. To know how it is performing is invaluable, so this is my favorite measurement tool.
Google Adwords: The amount of information you can gather by using Adwords is astounding. Because we can target a specific market, see its real-time performance, and make adjustments whenever we want, Adwords and PPC may be the best marketing money can buy.
Survey Monkey: A simple five-question survey could drastically change how you market your business. Don’t be afraid to ask questions, take the information you get, and put it to good use.
Mailchimp: I love Mailchimp because it makes email marketing simple while providing the data required to measure the campaign’s performance. It’s also helpful because you can create very specific categories for each subscriber and mine the data to get useful information.
Hootsuite: Hootsuite not only manages your social media channels but also provides reports on your performance.
YouTube Analytics: As a video production company, we need to know how our videos are performing. YouTube analytics offers the data we need to measure that performance.
I realize I’ve only begun to scratch the surface of marketing measurement. What are your favorite tools to use for your marketing campaign and how do they help you?
About the Author
I'm Luke Fortin, CEO of Farmore Marketing. Originally from Turner, Maine, I achieved my Bachelors Degree in Business Administration from Clearwater Christian College in 2013. I love the combination of business and art that marketing provides--I believe it's what makes a business unique and successful.
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