More Dunks and Fewer Air Balls: The Importance of Marketing Measurement
Legendary Princeton University basketball coach Pete Carril once said the following about one of his players:
“He has the shooting range. What he doesn’t have is the making range.”
Every business owner on the face of the earth is capable of marketing their company. But if you don’t make enough of your shots and market your business effectively, you won’t stay in the game for very long.
Some people think the best approach is to keep shooting and shooting. Eventually, enough shots will go in. That may be true, but this approach is as risky as it is inefficient.
The only way to find out if you’re making enough shots and getting the most from every marketing dollar is to measure and manage the results of your campaigns. By analyzing data, you can find out what’s working – and working well – so you can make better decisions, improve the customer experience, and maximize ROI.
The great thing about digital marketing is that virtually anything can be measured with web analytics. Unfortunately, most business owners don’t know how to take full advantage of analytics tools.
For example, most people have heard of Google Analytics. However, we’ve learned that very few business owners know how to use it. They don’t know what metrics are relevant. They don’t know how to adjust the settings to track and present anything beyond the most generic data such as visitors, traffic sources and page views.
That’s okay. We do.
As WSI Internet Consultants, we use the Digital Marketing Measurement Model, which provides business context for every marketing tactic and everything you measure.
The first step is to identify the type of website you have and establish business objectives that are achievable and easy to understand. For example, is it an ecommerce site built to get customers to buy online? Is it a lead generation site built to get visitors to submit contact information so you can convert them into customers?
The next step is to identify goals to meet your business objectives. While the objectives are strategic and high-level, the goals are specific things that need to be done to realize those objectives.
When setting goals, we focus on the three core components of analytics:
- Acquisition, which involves anything associated with generating website traffic
- Behavior you expect from visitors when they arrive at your website
- Outcomes that deliver value to your company’s bottom line
To make your goals measurable, we then have to establish key performance indicators, or KPIs. KPIs will tell you which metrics should be used to measure each of your goals and how your campaigns are doing. Good KPIs must be relevant, timely, simple and instantly useful. Examples of KPIs include conversion rate, days or visits to purchase, loyalty (how often a visitor returns to your site), and time (how long it takes a visitor to return).
Once we have KPIs established, we need to segment the data. Most analytics tools will show you aggregate or average data. However, there’s no such thing as an average visitor. Visitor behavior can vary quite a bit based on a number of factors, which is why aggregate data can be misleading. We segment data into specific groups so it’s easier to understand and take action. We also determine which segments to focus on for each KPI so you can meet your objectives.
Finally, you need to establish targets – the numbers that indicate success or failure. It does no good to look at numbers if you don’t know what those numbers mean. Remember, the value in web analytics isn’t in the numbers. It’s in the insight gained from those numbers.
The beauty of the Digital Marketing Measurement Model is that it shows you how every part of your marketing strategy is relevant to your business, and how each step is connected to the steps before it.
Does this sound a little overwhelming? It certainly can be. That’s why it’s important to follow a proven process that can be customized for your business. If you’d like to learn more about how WSI can measure your digital marketing to maximize results, call 609-750-0505 or email firstname.lastname@example.org.