Kill those vanity metrics! It really should be all about measurability and accountability. You need to know what you are getting for the money you are spending. Clicks, click thru rates, impressions – Yuppi! What really matters? GOALS. SALES. Money in the bank.
Numbers power real marketing more than ever. That means a complete understanding of analytics and metrics, the numbers behind your marketing efforts, is vital.
Why are numbers important?
Metrics are figures that allow you to concretely measure your marketing success instead of relying on superficial observations. They provide real insights into how your landing pages, advertisements, email communications and the like are performing with customers.
Without numbers, you are simply making uneducated decisions about what is working. Would Apple invest millions in an advertising campaign without studying the numbers and making sure it was a strategic move? No, of course not.
Perhaps the most important thing about marketing metrics and analytics is that they provide a tangible look at progress. There is accountability in numbers, which means companies can set and evaluate measurable goals. Numbers make actionable goals such as “increase conversion rate by 7%” a reality. ‘Conversions’ — there’s a word I like.
What numbers are important?
Defining what numbers are important for your company is a primarily subjective decision. While some metrics, such as ROI and conversion rate, are relevant to all companies, others simply are not. The numbers that are important to your company are the numbers that help you measure your marketing goals.
For example, let’s say one of your goals is to increase the amount of time leads spend on your landing page by 10%. You will want to measure metrics such as advertisement clickthrough rate, bounce rate, visit duration, etc. You may even want to measure A/B testing metrics. Does a lead stay on your page longer if you change the color of a button? What if you move the subheading to the left? Or with a 30 second video? You can test this using Unbounce. Below is an example of a landing page I did for Manpacks.
On the other hand, metrics that measure sales, cost per impression and cost per click would not be relevant to you because they do not help you measure your progress with that specific goal. Granted, you may be tracking those metrics for a separate goal.
The idea is not to measure and evaluate as many metrics as you can. That would merely be counterproductive. Instead, the idea is to identify the meaningful metrics that are of the most significance to your marketing intentions. Think about what numbers will help you make informed decisions going forward.
There is, however, one universal metrics rule. You should always measure your baseline metrics before beginning. Baseline metrics give you an idea of where you began, which is obviously important to tracking how far you have come. Before you act on a campaign or initiate a strategy, record your baseline metrics.
How do I find the numbers?
As the focus shifts from marketing assumptions to marketing data, new systems of retrieving, recording and evaluating numerical figures are sprouting up. Still, the two most popular, and often most effective ways of managing metrics are: surveying and analytics software.
1. Surveying
Surveying is a straightforward concept. It is the act of soliciting your previous and potential customers for feedback on your current marketing efforts. It gives you a clear look at where you are now in relation to where you would like to be in the future. There are some important things to consider before crafting a survey. I use SurveyMonkey for this.
- Surveys should be short and to the point. Too many questions will push people away.
- Surveys should be clear and direct. Close-ended questions with multiple-choice answers receive more responses than short answer questions.
- Surveys should seek to answer a specific question identified by the company. A survey is virtually useless unless it has a narrow, definitive purpose.
- Surveys that offer incentives receive more responses than surveys that do not. An information product, such as an eBook or an online course, is a great incentive.
- Surveys should be advertised through multiple channels. Sending the survey via email, announcing it on social media and placing it on your website increases the likelihood that it will receive an abundance of responses.
Surveying is also a great way to get insight, feedback and some awesome marketing copy from your customers.
2. Analytics Software
Analytics software does most of the work for you by providing metrics that are relevant to your company and its goals. Typically, the software allows you to define company objectives, select key metrics, record key metrics and measure key metrics over time. Analytics software places all of the numbers needed in one convenient dashboard for easy accessibility and evaluation.
There are a number of companies that provide marketing analytics. Here are just a few examples.
Numbers have never been more important than they are today. Metrics and analytics empower Internet marketing, making it just as accountable and measurable as marketing through traditional channels. Real marketing is shifting to a data-driven performance focus. Are you?
Thanks Renee, another great post! I am a numbers person and I am so because as you mentioned, real numbers do not lie. The numbers are a wise voice in our ear