Everything in a business, especially in marketing, needs to have a measurable ROI. As marketing has evolved likewise the means to track it. Here metrics come into the picture. Without measuring the right metrics, it is almost impossible to find out whether or not, the organization is delivering on the set expectations.
As part of the CULytics Workshop, Bob Little, CULytics Advisor with Naveen Jain, CULytics CEO took a look at the most common marketing performance metrics to help in measuring and attributing revenue back to the marketing campaigns.
The goal of the session was to help in gaining a better understanding of marketing analytics programs and how good performance measurement can improve results. The agenda of the session comprised The maturity of marketing analytics in credit unions, Practical examples of marketing performance indicators, and best practices for implementing marketing metrics programs to attain maximum outcomes. Read it out for more information:
Marketing analytics is about the practice of measuring, managing, and analyzing marketing performance to maximize its effectiveness and optimize ROI. Money spent should bring in favorable results. The analytics might be descriptive, diagnostic, predictive, and prescriptive for improving marketing productivity, real-time performance management, and gaining high customer acquisition and retention.
There might be a Struggle with Marketing Analytics. And, it could be related to customer acquisition, customer retention, social media, segmentation, promotion strategy, branding, pricing strategy, product or serving strategy, and multichannel marketing among others. So doing the right thing is important.
A typical marketing campaign will combine multiple traffic sources, contact segments, landing points, conversion offers, forms, emails, and automated sequences -along with dozens of metrics to measure and targets to set.
Marketing Analytics - Maturity Model and Priorities
A marketing analytics maturity model comprises analytics tools, metrics that are followed and key challenges to focus upon. Different stages of the model are Tactic-Driven, Campaign-Driven, Integrated, and Predictive. Average credit unions are at the Tactic and campaign-driven stage, a few are at the integrated stage and almost none is at the predictive stage.
The priorities of the marketing analytics maturity model are marketing data integration, business intelligence, and data science, marketing segmentation and targeting, Customer Experience, Content Marketing, technology foundation, SEO marketing, and social marketing. Keeping these things in mind will give success.
Marketing Metrics – Types
- Channel Metrics - Tells how the activities have been delivered and whether they are working the same way they are supposed to be. It comprises of:
- Content Production: Number of articles published and number of social media posts
- Website: Organic search, PPC search, referrals and direct
- Social Media: YouTube, Facebook, Twitter, Instagram, Pinterest, LinkedIn and TikTok
- Paid Advertising: Social media ads, influencer marketing, PPC search, banner ads and retargeting
- Email: Weekly newsletters, exit-intent coupon sequences and abandoned cart sequences
- Traditional (Offline): Direct mail, TV and radio ads, billboards and general word-of-mouth
- Performance Metrics– Gives the results from doing these things. The elements of Performance Metrics are:
- Content Consumption: Website traffic volume and average time on page
- Engagement: Comments and shares on Facebook posts
- Lead Generation: Marketing qualified leads (MQL) and sales qualified leads (SQL)
- Conversion: Landing page conversion rate, search click-through rate (CTR) and form completion rate
- Sales & Revenue: Total revenue, number of sales and customer lifetime value (CLTV)
- Customer Retention: Newsletter unsubscribe rate
- Brand Awareness: Branded organic search volume
In short, Channel Metrics are about how things are being done. Whereas, Performance Metrics are about the results from doing such things.
Good strategic goals can be made with a focused approach to the outcome. They are measurable on a sliding scale (e.g. increase from 10 to 25 or reduce from 70 to 55). Goals are not the tactics used to deliver outcomes –programs, initiatives or projects.
Strategies are about doing something different and increasing something. These depend upon the objective. Strategic Objectives as measured by (KPIs) can be achieved by:
- Strategic Objectives are qualitative and memorable descriptions of what is required to achieve. They should be short and engaging.
- KPIs quantify the outcomes that are expected to achieve. They are measurable on a sliding scale (e.g. increase from 10 to 25 or reduce from 70 to 55) over a period of time.
- Activities, on the other hand, are the programs, initiatives, tasks, and projects associated with achieving Objectives. They are usually binary (done or not done).
KPIs vs Metrics
Before beginning to track these, it is important to understand the difference between these two. Which one is strategic and which one is important- it is imperative to know.
- A metric is any standard of measurement. Eg:
- Number of requests logged
- Number of data owners identified
- Percentage of requests resolved within SLA
- A Key Performance Indicator is a quantifiable metric that drives improvement and that links to strategic business outcomes
- A KPI is a metric but a metric is not necessarily a KPI
Proxy metrics are an indirect way of measuring what is required to achieve.
Lagging indicators enables to act after the fact whereas leading indicators help in predicting future behavior and enable proactivity.
Balance Quality and Efficiency
“For every metric, there should be a paired metric that addresses adverse consequences of the first metric”- Andy Grove
So, while trying to change some specific behavior, it might be backed by cost.
While working on achieving goals, it is important to measure progress toward that outcome to know that plans are performing as expected. So, remember that a good strategic goal focuses on an outcome. Also, Key Performance Indicators (KPIs) can be organization-wide or may focus on departmental goals.
Do not forget that it’s all about the outcome and not the actions. Try to avoid watermelon KPIs as they are green on the outside but red inside. Make smaller changes for analyzing and enjoying growth.
Watch the full workshop here - https://culytics.com/ppm-marketing