Measuring marketing success
What makes sense?Only what can be measured can be evaluated and improved.
The quote, freely based on the famous economist Peter F. Drucker, also applies if one wants to measure the marketing success. If you didn’t do it, marketing would only be an annoying cost center. Especially in times of crisis, their usefulness would then be questioned first. With luck, the marketing budgets would be linked to sales, and the whole thing would then be celebrated with the succinct sentence: “We have planned two percent of sales for marketing this year.” But this has no to do with entrepreneurial thinking or strategic planning.
But it is precisely entrepreneurial thinking that is the basis of any marketing decision.
- Acting entrepreneurially means using the budget where it has the greatest impact. It must be made clear that the funds that go into marketing do not go anywhere, but ensure the company’s market success.
- Marketing must make its performance and contribution to entrepreneurial success visible.
- Marketing investments must pay off.
For this, you have to measure the marketing success!
How do you measure the success of a marketing campaign?
There are numerous ways to measure marketing success, depending on whether you consider sub-disciplines (online or advertising campaigns, social media marketing) or overall success. Here are some options:
Return on Marketing Investment
Attention, now it will be a bit dry! Because mathematically the formula for this can be set up relatively easily:
(net sales – product costs – advertising costs) / advertising costs
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Whether marketing has created value can also be deduced as follows:
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The additional revenue generated by marketing minus the cost of this (in terms of marketing costs) shows the return achieved through marketing. If the value is positive, marketing has created value.
Conversion Rate
The conversion rate (also known as conversion rate, conversion rate, or conversion rate) is a key performance indicator (KPI)that shows the ratio of visitors to a website to conversions. Conversion can be any previously defined and achieved goal, such as the ratio of page visitors to a download or newsletter.
The optimization of the conversion rate is usually part of SEO (search engine optimization). It can improve lead generation, sales, and sales.
Website and Social Media Analysis
In online marketing, a weekly view of the website’s visitor numbers is mandatory. The following questions should be answered and documented:
- How fast does the website load compared to last week?
- How well is the site visited today and compared to last week (Website Traffic)? Where are outliers and why?
- How many new and how many repeat visitors does the site win?
- Where do visitors come from, from which source (Google, Facebook, newsletter)?
- From which country or region do most visitors come from?
- How much time does the average visitor spend on the pages?
- On which days of the week and at what time are most visitors generated?
- How many visitors come from mobile devices, how much from desktop PCs?
- Which sites are the most popular, the least visited?
- Which external links (inbound links) are used by visitors to which pages?
The same applies to social media channels:
- Which are the most popular posts?
- Amount of weekly visitor numbers?
- How many friends, followers or shortcuts could you collect?
- How many likes, comments and shares do you reach?