Marketing is a huge driver behind customer acquisition and retention, no matter what line of business you’re in. And companies today have more exciting avenues through which to connect with people than ever before—social media, email, paid ads, content, word-of-mouth, retargeting, video, etc.
But marketing your products, services and brand can get expensive. It’s important to make sure you’re getting the best bang for your buck in terms of return on investment (ROI). This requires a close understanding of how much you’re putting into your marketing campaigns vs. how much value you’re getting out of them.
Here are three tips for boosting your company’s marketing ROI.
#1: Determine Which Metrics Are Important for Revenue
It’s all too easy to get lost in the weeds on marketing metrics. There are so many available to measure, you could have your team creating reports all day every day and still not cover them all. Then you’d have to start all over again to reflect updates. It’s simply not feasible to track every metric; and doing so ends up distracting you from what’s most important to your organization’s bottom line.
Watch out for vanity metrics, or those that “distract your team from the business goal” and “often don’t correlate to revenue.” It’s less important that your marketing metrics look good than it is they tell the whole story so your marketing team can make smart decisions based on data. Your goal here is to boost engagement in a way that increases profit margins.
Define your key performance indicators (KPIs), or metrics that measure your key business objectives. For instance, a healthcare organization looking to attract more patients and schedule more appointments to drive revenue would identify the handful of marketing metrics that tell them something about these efforts: revenue, number of leads, quality of calls generated, appointments book, procedures scheduled, patient lifetime value, etc. These KPIs actually tell marketers something about the performance of their campaigns, unlike vanity metrics like impressions, page visits, time on site and call volume.
#2: Uncover Actionable Insights with Marketing Analytics
Generating scheduled reports full of marketing metrics is a start, but what about when marketers have questions in the moment? Unless your business is able to capitalize on ad hoc queries, you’ll miss out on actionable insights capable of boosting marketing ROI and performance. This necessitates making marketing analytics accessible to all—not just IT specialists, but marketing, brand and customer service managers.
Search-driven analytics from ThoughtSpot, for example, allow users to ask questions of data using natural language rather than needing to know Structured Query Language (SQL). The ability to get instant insights into campaign performance, customer behavior and sales figures is a game-changer in terms of making smart decisions that optimize ROI.
There’s also AI-driven analytics, which uses advanced algorithms to query data and detect insights before humans even have to ask. This advanced tech can uncover helpful tidbits for use in improving marketing returns that otherwise would have been hidden in millions of rows of data.
#3: Consider the True Value of Each Customer
Whether you’re an ecommerce retailer, a healthcare organization, a telecommunications company or a bank, how well you’re able to acquire and retain customers has the power to make or break your profit margins.
To gauge whether your marketing efforts are worth the human power and money you’re investing, figure out the average customer lifetime value (CLV) for your business. How much are you spending to attract people? And how much value do they generate for your company? Then drill down to figure out what demographics and behaviors make people the ideal customer for your business. The more efficiently you work to attract people with the traits of your tried-and-true top customers, the higher your average CLV will be.
Boosting your company’s marketing ROI helps you get the best results for the least money. By knowing what to track, and implementing cutting-edge analytics to do so, you’ll be able to optimize how you market.