Marketing is an investment and not an expense. Our clients and partners understand that effective marketing is a long-term strategic process and that obsessive measurements are key to supervising and continually improving this process. To this end, we support our clients’ marketing through continuous measurements, assessment of key performance indicators, and return on marketing investment (ROMI) reports. This helps keep the lead well informed and helps you understand what works and what doesn’t, and what has to be improved and enhanced. This allows you to achieve a maximum return on investment for every individual marketing activity.
If you want to clearly show the profitability of all marketing activities, you have to define their objectives and measure their impact in detail. Awareness, image, Facebook likes, and website visits don’t have a measurable impact on turnover and the marketing department’s contribution to your business growth. If you really want to set up your marketing as a strategic function, you have to take responsibility for the customer acquisition cost, and marketing’s contribution to turnover or even profitability. That’s why we follow customers through the entire sales process from when they first klick a post on social media or visit a professional fair until they make a purchase. We assess every activity on this path according to its impact on sales revenue.
John Wannamaker once said. “Half the money I spend on advertising is wasted; the trouble is, I don't know which half.” Today you should know the exact customer acquisition cost and the exact amount each marketing activity contributes to the revenue that is generated several months later.
Operationalized key performance indicators
Don’t spend your funds on tracking the key performance indicators that have no influence on your business growth whatsoever. In order to improve your daily operations and receive well-deserved recognition from your management, you need to track your results and assess them at both the macro and micro levels. The metrics influencing your performance, such as the conversion levels, the click-through rate, and lead generation and conversion into sales opportunities, are a valuable tool for improving your results. You can then report your performance to the management in the form of turnover, profitability, and realistic projections for future operations.
We can recommend, implement, and manage your data, reporting, control panels, and assessments, which allow you to report and track things without spending valuable money on data analysis.
There’s an important difference between data and information. When you measure your progress, you have to define the key performance indicators that best define your marketing performance. The key performance indicators for marketing are divided into three key categories: your success rate in attracting new leads, your efficiency in converting leads into actual customers, and the time a new contact needs to become your customer..
Technically this means that you need to track the source of every lead (marketing and sales point in the sales process) and transfer these data into the key performance indicators. We’ll help you measure the customer acquisition cost (CAC), customer lifetime value (CLV), cost per click (CPC), frequency of visits to your website, exit rate, and visit duration, as well as the number of e-mails opened, the click-through rate, and the impact of marketing on lead qualification. In the end, we’ll help you measure and assess your sales team’s performance rate in converting qualified leads into customers.
Return on marketing investment (ROMI)
Your company’s ultimate goal is to achieve growth in turnover and the number of customers. Every penny you spend on marketing has to contribute to this goal: your ROMI is the key performance indicator that has to determine all your activities. We don’t start working on any project without first agreeing with the client on the importance of assessing its return on marketing investment. Sometimes you can only measure the impact of a specific activity after you set it up. Once you start developing it anew through strict testing, you’ll never forget to assess its contribution and decide whether it should be cancelled, improved, or expanded.
The times when marketing was simply regarded an advertising cost and a necessary evil are over. Marketing is a strategic investment in business expansion and you can only invest in activities that pay off. There’s still some room left for testing and experimenting, but only in systems in which you can quickly determine whether you’ll continue to invest in or stop wasting time on an idea that’s leading nowhere. When reporting to your management, you need to focus especially on the strategic marketing metrics that will help you measure the ROMI, take responsibility for actions, and establish mutual respect.
The basics of key performance indicators
CEOs need a way to measure the impact of their decisions on their company’s performance, but key performance indicators aren’t useful just at the end of the sales funnel. When monitoring and analyzing the entire marketing funnel (from advertising via lead conversion to the number of used opportunities), you can connect every activity to its impact on results. If you show how investment in marketing positively influenced the company’s turnover, you can assertively argue in favor of additional investment in marketing, advertising, and the internal assets you need to continue your work. We can help you capture and present data that raise important questions and also provide answers to them.