[et_pb_section fb_built=”1″ admin_label=”section” _builder_version=”3.0.47″][et_pb_row admin_label=”row” _builder_version=”3.0.47″ background_ background_position=”top_left” background_repeat=”repeat”][et_pb_column type=”4_4″ _builder_version=”3.0.47″ parallax=”off” parallax_method=”on”][et_pb_text admin_label=”Text” _builder_version=”3.0.47″ background_ background_position=”top_left” background_repeat=”repeat”]Assessing the profitability of your marketing can be challenging – it seems like there are a lot of unknowns and moving parts. One approach is performance management; Used well, it can strengthen your capacity for continuous improvement. The success of your marketing strategy depends on how effectively and efficiently that strategy is implemented and controlled, as well as the strategy itself.
The four elements you need to evaluate your marketing profitability are objectives, metrics, analytics, and actions, which are inextricably intertwined in evaluating the effectiveness and ROI of your marketing activity. With each item in place, you can take corrective action for areas of your marketing that are not working well.
For example, you might want to evaluate:
Design – how effective is your marketing funnel, what are your conversion rates, what is your customer lifetime value, as these determine how much money you can spend to convert a click to a customer.
Process – how well controlled your marketing activity is in terms of periodically checking ROI of time and advertising / promotion spend.
With web analytics, it’s now easier than ever to access robust data throughout your marketing process, tracking the customer journey from inquiry to expensive purchases.
In its simplest form, marketing success is evaluated through return on investment (ROI), but using metrics like cost per click and sales revenue won’t tell you how well the marketing design is working. and how it could be improved; it just shows you exit versus entry.
Dive deeper and you’ll find a wealth of beautiful data at your fingertips. If you take the time to analyze and track the web, email, and social media, it can be very revealing. For example, you can definitely identify:
- What parts of your website visitors are more or less interacting with (hot
- Which offers or subscription forms and offers generate the most leads
- Where your conversions are good or where you are losing people
- How well your potential customers interact with you and your emails.
Plus, incorporating analytics tools like GoogleAnalytics or Clicktale into your website means you can assess your visitor behavior and customer experience and start seeing the story behind click-through rates on your site.
This is essential to understand where to focus your improvement actions.
When you know where you better customers come or go next, what they respond to or interact with the most, you can optimize your marketing / remarketing and reduce your ad spend dramatically.
“Every movement, scrolling, scrolling, touch, and pinch of the mouse exposes structured patterns of behavior that determine customers’ digital body language.” _ Clicktale
But looking at the numerical analysis is not enough to assess the effectiveness of your marketing strategy and venture to guess which tactics will produce the greatest improvements.
Evaluating the profitability of marketing should be more comprehensive than this. It’s definitely worth spending some time and effort first clarifying your marketing goals (awareness, lead generation, sales, customer satisfaction, etc.) and then identifying the one. metrics that best tracks those goals.
In this way, you can focus on short-term and long-term results. For example, lifetime customer value can be evaluated from two completely different points of view:
- Quantitative based on financial metrics of your ad spend versus sales analysis throughout the entire customer journey; and
- Qualitative based on reputation metrics derived from customer feedback.
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