The effectiveness of your marketing strategy is best measured by the difference in your revenue before and after the campaign has ended.
However, virtually every marketing expert will agree that keeping track of your marketing strategy while it’s still ongoing is the best way to ensure positive results. If you don’t analyze and improve your promotional tactics then you risk going through with a series of efforts that don’t lead your business in the direction you previously intended.
To help you analyze and measure the effectiveness of your marketing strategy, we have devised a series of tips that should help you measure your marketing efforts properly and make the most of the year ahead of us.
As we already said in the opening segment, it’s important to keep track of your campaign metrics as it goes on. Therefore, it’s best to establish milestones with proper deadlines for each of these checkpoints. This way you will know if your campaign is moving the right direction and have more time to fix any issues regarding your content, target audience, marketing channels, etc. For example, you could notice that your Instagram audience is reacting better than you previously anticipated, which would allow you to relocate your assets and focus on Instagram rather than on some other social network that doesn’t contribute to your goals.
Follow Key Performance Indicators (KPI)
It’s important to know that each marketing goal has different performance indicators. What this means is that if you’re looking for more visits to your website, you won’t take interest in metrics related to revenue or social media engagement. When you determine what your campaign goal is, make sure to learn about the most important performance indicators and follow them.
It's not a bad idea to compare your KPI metrics with industry standards because this will show you how well you're performing compared to other brands in your industry. The main idea behind this methodology is to focus your attention on what matters so you would have a clear understanding of what it is that you have to improve in your campaign. It could be the quality of your content, distribution channel, or any other aspect that requires improvement.
This is one of the oldest methods in the book (if there were a book) that you can use to figure out if parts of your strategy are working. Also, this kind of approach allows you to save money by investing only segments of your entire marketing budget.
Test your content, audience, marketing channels, or any other aspect of your strategy to gain information which one works the best or which combination of techniques provides the best results. Going step by step makes your campaign progress slower, however, at least you won’t travel blind but rather make informed decisions.
Consider other sources of influence
We track marketing results not only to make the best of the budget we were given but also to gather experience for future campaigns and build upon the old ones. However, what if a certain campaign finishes with positive results but it turns out to be the consequence of some outside influence like your content going viral due to some political incident or because you failed to notice the impact of another product launch?
Use Google Analytics or some other tracking tool of your choice to fully understand what’s going on during your campaign. This will help you to take into account all contributing factors that make your marketing ecosystem and avoid going after false indicators.
Compare invested with revenue
Analyze how much of the money you invested in a certain aspect of your marketing campaign contributed to an increase in revenue. For example, if you notice that most of your profits come from your Instagram audience, find out if these results are the consequence of your investment in Instagram advertising. If you’re pouring too much money and the results are lacking, then you should consider abandoning that concept.
Also, tracking the percentage of general business revenue back to your marketing team endeavors is a good way to make sure you’re spending your promotion budget effectively. Of course, this goes for campaigns that are aimed at scaling a business revenue, however, there are ways to transcribe conversion rates into revenue if you’re creative enough.
Marketing is more than a way to reach the audience, especially in the online world where all sorts of information are trackable and comparable. We can craft unique marketing strategies based on data, but we can also use real-time information to improve our existing mission goals. These few tips are just a fraction of the possibilities you have to ensure an effective marketing strategy that you can control from start until the finish. Keep in mind that there is no universal solution, and you should always apply those tactics that work the best for your brand.