There was a time not all that long ago when accurately measuring marketing performance was nearly impossible or at best, challenging. Digital technologies and the arrival of the digital communication era brought with it a method of accurately measuring the performance of just about every business operation metric. But that capability generated a huge amount of data that required analyzing and evaluating before it resulted in a clear plan of action to optimize company performance. Saddled with a virtual mountain of data, the challenge became identifying key factors necessary to produce the most important insights for a business to follow in order to remain competitive.
Key Performance Indicators (KPIs) track operational metrics that indicate how a business is performing against a previously established goal or objective. Marketing KPIs often show how a campaign is tracking and what marketing collateral or medium is producing the best intended results. Monitoring relevant KPIs will generate important insights into how a marketing strategy and tactics are working and what adjustments may need to be made to improve overall performance. The KPIs that may be used to track progress towards marketing goals are comprehensive and numerous, but regardless of the metric being measured, a KPI should have a pre-defined target or specific goal.
A carefully selected number of core performance metrics that include only those that are relative to a campaign’s objectives will generate a manageable and meaningful set of data. Selecting too broad a number of indicators can result in inefficiency and ineffectiveness. The ability to measure is vital to understanding the performance and value of any marketing campaign, but not all metrics are important to all marketing strategies. Don’t drown in the numbers that measure beyond strategic objectives. A variety of digital marketing tools such as Google Analytics, Google Ads, various backlink analysis tools, website analytics, and email marketing tools can be used to manage the data collection process.
Cost Per Acquisition (CPA), Marketing Channel Return on Investment (MCROI), and social KPIs like Conversion Rate, Engagement Rate, Brand Mentions, Audience Growth Rates, click-through rates, and email open rates will result in a broad understanding of a campaign’s performance. There is generally no one single KPI that is more important than another. A combination of financial and social indicators may be best for a comprehensive understanding of the results.
Digital technology has drastically changed the way businesses operate today, and the impact of digital marketing is ever-increasing. At Junction Creative Solutions (Junction), we are experienced and capable in developing impactful digital strategies for our clients. We understand the importance of measuring the progress of digital marketing strategies and how to identify and evaluate those metrics to specifically address each client’s goals and objectives.
For more on how Junction can help measure and optimize your strategy’s success, call 678-686-1125.