Marketing effectiveness is the ability of a marketing campaign to achieve desired objectives. Usually, these objectives are sales-related, such as generating leads or increasing brand awareness.
As a company enlists different marketing strategies, such as SEO, PPC, or email marketing, it’s crucial to track and measure the effectiveness of each campaign. Doing so allows you to determine which campaigns are working and which need improvement. Here are five of the most common ways to measure marketing effectiveness.
Track Prospects’ Responsiveness
Responsiveness is the degree to which a target market member responds to a marketing action. For example, an email tracking tool lets you determine how many subscribers respond to your emails. Who opens, clicks on links, shares, or forwards your message? The people who take action are considered responsive.
Measuring leads can be a bit trickier. Use a contact form on your website to track how many people fill it out. If you’re using multiple marketing channels, such as trade shows or print ads, include a unique phone number or offer code to see how many people respond.
Look at Sales Revenue
The sales revenue metric tells you how much money your company is bringing in due to its marketing efforts. Break down the sales revenue by marketing channel to see which channels perform best. For example, if you’re running a pay-per-click (PPC) campaign, you can see how much revenue each click generates. You’ll realize whether your PPC campaign is worth the investment.
Continually analyze the costs associated with each marketing campaign as well. The effort helps you determine your return on investment (ROI). A high ROI means your marketing campaign is effective and efficient, while a low one indicates that your marketing costs are too high compared to the sales generated. You may have to abandon the strategy or improvise to make it more effective.
Monitor Website Traffic
Website traffic generation tells you how many people are visiting your website and taking action, such as subscribing to your newsletter or making a purchase. There are several ways to track website traffic.
Google Analytics is a free tool that lets you see how many people are visiting your website, where they’re coming from, and what pages they’re looking at. With this information, you’ll determine which marketing channels drive the most traffic to your website.
You can also track the traffic through web server logs. These records show how many people visit your website and which pages they view. This information helps you identify any problems with your website, such as broken links or pages that take too long to load.
Check Social Media Engagement
Social media engagement measures how often people interact with your brand on social media. This metric includes actions such as likes, shares, comments, and retweets. The number of social media followers is also a measure of engagement. Use social media analytics tools to track engagement.
These tools let you see the posts that get the most engagement and those not performing well. Encourage your audience to interact with your brand on social media by posting helpful and engaging content. Increase engagement by running social media contests or giveaways. These activities encourage people to like, share, and comment on your posts.
Assess Lead Quality
The lead quality metric shows potential customers’ interest in your products or services. The higher the quality of leads, the more likely they are to convert into paying customers.
Track the number of leads who take action, such as requesting more information or subscribing to your newsletter. You can also use lead scoring to assess the quality of leads. This system assigns a point value to each lead based on demographics and buying behavior. The higher the score, the better the quality of the lead.
The Result is a Higher Sales Revenue
Measuring marketing effectiveness lets you discover the marketing channels that are working and those requiring improvement. You’ll understand your target audience better, learn what type of content they engage with, and discover more manageable ways to reach them. The overall result is a cheaper marketing budget and higher sales revenue.