Evaluating and optimizing your marketing efforts in an iterative cycle has proven to boost brand recognition and engagement as well as company performance further down the marketing funnel. This has been critical to marketing and growth success for many years now. And with an economic downturn and even predicted recession hanging over businesses like a dark cloud, the (rightfully) refound focus on capital efficiency enforces the need to evaluate and optimize. In this blog, we will dive further into why you should start measuring and evaluating your marketing kpi’s and what you can do, today.
Marketing performance metrics (or marketing kpi’s) are useful for both marketing professionals and non-marketing executives. They help measure how marketing spending contributes to the bottom line and how marketing complements other initiatives in the organization, such as sales and customer service.
There are several reasons why a company should track its KPIs:
Other key insights that make evaluating your data-driven marketing performance so important include insight into your progress towards your annual goals, insight into what areas of your marketing mix might need modification and insight into whether company goods, services, and ideas meet your customer’s and stakeholder’s needs.
All marketing efforts aim to increase sales and create value for your business. Leveraging data improves accuracy in targeting customers, which helps you achieve these aims more quickly and cost-effectively.
The pirate metrics are the perfect starting point if you don’t know where to get started. The Pirate Funnel is a framework that divides your marketing efforts into bite size pieces and shows you where your attention is needed most.
The pirate funnel was created by Dave McClure and consists of Awareness, Acquisition, Activation, Revenue, Retention and Referral. Together: AAARRR. Hence the name: pirate funnel. From top to bottom, it looks like this:
The Pirate Funnel was first used by growth hackers, but provides value for every marketer because it lets you find the weakest point in your business to focus on. All customers go through these 6 steps and by filling in this framework, you’ll find the gaps within your business.
To find the gap within your business, analyze how many people you have reached (Awareness). Then look at the percentage of people that made it to the next step (Acquisition). Follow this process for all the following steps. The step with the lowest ‘survival’ rate is the one you should focus on first.
The way you measure the effectiveness of your marketing programs will depend on many factors including your business goals, marketplace dynamics and available resources for analysis. You may choose to measure each program individually or use a composite measurement method that combines key metrics from each program into one scorecard.
Regardless of how you choose to measure the effectiveness of your marketing efforts, it’s important that you do so consistently over time so that comparisons can be made between different periods or between different groups within your organization (i.e., sales vs. customer service).
Eyk is the new way to power your marketing insights.
Manually preparing your data is time consuming and unreliable and therefore blocks marketers from adding true value to the business.
With the Eyk platform you can automate the infrastructure by extracting, loading and transforming components of your data flow. By doing so, you can spend more time driving value from your data analytics.
With Eyk you can:
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Get all your e-commerce metrics together in one overview today.
