Measuring the effectiveness of marketing campaigns is imperative to determine how successful it is. But still, most business owners don’t track their marketing campaign results and keep on spending their money, without knowing whether the campaign is effective or not. Measuring the accurate performance of any marketing campaign is very difficult but with the following tips you can easily collect enough information from your marketing campaigns to take informed decisions.
Select Metrics: First of all, you need to specify which metrics you will use to measure the success of your campaign. These are determined by the objective of your marketing campaign. For example, if the objective of your marketing campaign is to increase blog readership, then number of subscribers should be used as metric. But if the objective of your marketing campaign is used to promote your Brand, then you could use surveys as a measurement to know about the improvement in popularity of your Brand after the campaign.
Predict Results: It is impossible to predict the results of a marketing campaign unless it is completed, but you can speculate what results which you think can be achieved at the end. Many business owners just say, “we want to increase blog readership, let’s place ads.” This is a very unscientific approach which could create difficulty in measuring effectiveness at the end. Be specific with your predictions. For example, say “we will increase blog readership by 30%.”
Divide and Measure: Each marketing campaign targets various locations and uses different sources like online ads or local newspapers to promote. Divide your Marketing Campaign on the basis of locations and then divide them further in to various means of Marketing and measure the results. This technique can provide you with lot of hidden information.
Here’s an example: you are promoting a product in Place X and Y, both online and offline. After seeing the results, you conclude that online modes of marketing work better in Place X, and in Place Y, offline ads convert very well. So in the future you won’t be wasting money on Offline Promotion in Place X or on Online Promotion in Place Y.
Calculate ROI: ROI also defined as Return of Investment. It is measured by Value of Customer divided by Customer Acquisition cost Multiplied by 100. For example, if your marketing campaign costs you $5,000 and you acquire 10 customers where each customer generates $1000 in profit for you. Then Your ROI would be 10,000/5,000 * 100 = 200%. Higher the ROI, the more effective your marketing campaign is.
Eliminate Unmeasurable Actions: Each marketing campaign contains some parts which can’t be measured directly. For example, if you place an ad on a billboard, you can’t count how many people saw that billboard. To help track this, issue a discount coupon code for your customers and track the success of such ads with the help of these codes. The success of any such ad would depend on the number of times a coupon connected to that ad would be used.
Test, Tweak and Retest: Keep on analyzing results of your campaigns and then make required changes. Sometime a tiny change in headline can make drastic improvement s in your ROI. So keep on testing your campaign unless you achieve desired results.
Gagandeep Singh is an Internet Marketing Executive for Fortepromo, which helps Small Businesses promote their brand with high-quality promotional items.