Find your Marketing Effectiveness score!
Every business owner, executive and leader like you wants to know what marketing is working and what's not working.
Most don't have time to dive into the data and analytics to figure it out on their own.
Having a framework to work from is a good starting point, but it doesn't provide the answers you need - especially the financial answers.
If you can measure the effectiveness of your marketing - what's working and what's not - you'll be able to answer those questions and create not only more efficiencies in your marketing but more effectiveness that shows in the lead quality, customer retention and revenue.
So, what IS Marketing Effectiveness?
Marketing effectiveness measures how well a company's marketing strategies:
decrease customer acquisition costs
increase customer lifetime value
If you're looking for ways to measure your marketing spend and determine whether your marketing efforts are driving higher quality leads that generate more revenue, you need metrics, benchmarks and key performance indicators (KPIs).
Here is only a portion of important questions you should be asking:
Where did new customers come from?
How can I replicate the most profitable customers?
Which digital platforms drive the highest quality leads?
What keywords are working on paid vs. free content?
How many leads am I getting for how much I'm spending on marketing?
Is there a lot of 'spam' calls and leads? If so, what's creating the spam?
Am I marketing to the best customers for my business?
What content is providing at various customer touch points?
Does my marketing spend correlate to the needs of sales and the business goals?
Why do customers continue buying from me?
Why is marketing effectiveness important to my company?
In other words 'Why should I care?'.
Marketing leaders and departments are constantly under scrutiny. The most common reason for the scrutiny is that most companies don't have a direct correlation from marketing spend to revenue. This typically occurs in companies where the marketing and sales departments aren't aligned or marketing efforts are only seen as an expense and not providing any real value.
Unless you can show how marketing is driving revenue - and retaining customers - the marketing team will continue to be scrutinized.
What metrics matter?
We know that leads are fuel for sales so tracking leads is the ideal place to start. By tracking every lead you can sort and identify which ones are converting and where they came from. Here's what you'll need to track for each lead:
Who - the person's name
What - information they requested
Where - what platform or source did they come from
Engage - did they call, email, chat, download, fill out a form....
Convert - did they buy from you
Having this lead source information empowers you to know which leads are high quality and where those leads came from. This will help you identify what's working so you can replicate that process and stop doing what's not working.
How do I know whether my marketing is effective or not?
The best way to determine if your marketing is effective is looking at your customer acquisition costs. Is the money you're spending on marketing acquiring more of the types of customers you want?
If the answer is YES then you're marketing is effective. If the answer is NO or I DON'T KNOW, then you need to identify what's stopping you from making more money and keeping your customers longer.
Here's one way to find out: take the Marketing Effectiveness Quiz. It will reveal a score and provide you with next steps at how you can increase it.
The two MOST Important but Overlooked Marketing Metrics
Customer Acquisition Costs (CAC) and Customer Lifetime Value (CLV) are the two most overlooked marketing metrics. The reason? They aren't as easy to track as vaniety metrics like website visits and lead count.
The little time and effort it takes to run a report or manually calculate these two values will most certainly prove Marketing Effectiveness if you can show the correlation between your marketing efforts and decreasing CAC while increasing CLV.
Here's a video I created that talks about and runs through the calculations of both terms.
If you haven't already, take your Marketing Effectiveness Quiz now!