After months of hard work and planning, it’s finally happening. You’re ready to launch your marketing campaign and turn your prospects into qualified leads—there’s just one problem: How will you know if you’ve been successful?
That’s why we’re here. These are the most important metrics you need to monitor. Determining your campaign’s effectiveness involves two fundamental steps: setting goals and monitoring key performance indicators (KPIs). Here’s a quick overview of each one:
What actions do you want your audience to take? Should they download a content offer? Schedule a meeting? Reserve a demo? Your goals will determine the way you measure your success. Every goal should be SMART: specific, measurable, attainable, relevant, and time-based. An ambiguous goal like, “significantly increase lead generation” will not help you determine your campaign’s success.
When specifying the type of response you want to elicit, keep your buyer persona in mind. It is crucial to know the messages and media your ideal lead is most likely to interact with. Your prospects require several engagements with your company before they’ll commit to buying from you; this long-term relationship is called the buyer’s journey. As you’re setting goals, make sure your campaign has multiple touchpoints to nurture leads and move them deeper into the marketing funnel.
Once you’ve set your goals, you need to decide how you’ll monitor your progress toward accomplishing them. That’s where your key performance indicators (KPIs) come in. KPIs are metrics that demonstrate how an entity is meeting its goals and objectives. KPIs can be financial—like net profit, liquidity, and cash availability—or more ambiguous, such as quality of customer experience or employee retention rates.
Since your KPIs depend on your goals, individual metrics will vary across organizations. However, there are some universally valuable KPIs to consider when evaluating your marketing campaign:
- Customer Growth: Businesses need to know whether their number of customers is growing or shrinking. Measuring this will offer insights on whether your acquisition efforts are working or whether you need to change tactics.
- Customer Retention Rate: This metric is different from customer growth. For most organizations, your top assets are your recurring customers rather than one-time buyers. It also costs far less to cultivate a relationship with loyal customers than with new or potential leads.
- ROI: It’s important for businesses to track their return on investment (ROI). Are you seeing a worthwhile ROI? If not, you may need to rethink your current strategies. You can calculate your organization’s ROI pretty simply. You just take the sales growth from your business or product line, subtract the marketing costs, and then divide by the marketing cost.
Setting concrete, SMART goals will indicate which KPIs are necessary for monitoring your campaign’s success. However, keep in mind that a KPI on its own doesn’t tell you anything about your organization’s performance. You should actively measure KPIs over time to know whether your business is really growing.
With your goals and KPIs established, you’ll be able to monitor your effectiveness in real time and make necessary adjustments to ensure maximum success. To get a complete toolbox for campaign analysis, download our eBook: Analyzing Metrics: Is Your Marketing Campaign Really Effective?