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Blog

Andy Donaldson

How CEO's and MD's should measure their marketing teams'​ effectiveness at growing revenue.

Introduction

If you want to know how effective your marketing team is REALLY doing, don't look at a single indicator, metric or channel. How many times have you heard the old saying, "If all you have is a hammer, everything looks like a nail"? The same principle applies when measuring the effectiveness of your marketing. If all you do is look at clicks and visits to your site, every tactic that delivers those results will look successful (or unsuccessful as the case may be). However, in order to gain meaningful insight into the performance of different marketing channels and tactics and how they work together to generate conversions and revenue for your business, it's necessary to step back and take a more holistic view of your marketing activities.

Don't look at a single indicator or metric.

You're running a business, so it makes sense that you'd want to measure your companies effectiveness. That's great! But there's a lot of ways to get it wrong that will slow your growth. The first thing you need to do is look at the big picture—your company's strategic goals, the brand values you're trying to convey, and how those fit into your customers' lives. Start with addressing your audience's needs (pain points) and wants and how your product solves that for them, and you'll be taking your audience along on the ride with you.

This will give you a good idea of where you stand right now as an organization and where things went right or wrong along the way. It may also give some clues as to why certain things work better than others...or perhaps show them not working at all!

Don't use the same metrics to measure all strategies.

This is a biggie. Your marketing strategy might be focused on branding, or direct response…or both!

But whatever strategy you're using, it's easy to fall into the trap of measuring everything by the same metrics. This can lead to some bad results and slow revenue growth: If you're trying to build brand awareness, measuring how well your company name is performing in searches will not give you an accurate picture of your success (and also could potentially cause awkward conversations with potential clients). If you're focused on increasing revenue, then focusing on impressions doesn't make sense!

One of the biggest mistakes we see companies making is trying to measure last-click attribution across all strategies (we'll talk more about what that means in an article later this week). While this might seem like an easy shortcut for marketers who are just starting out with data collection, it’s actually harmful since different types of campaigns have very different goals and should be measured differently. But vitally, digital channels talk to each other. They influence each other heavily in some cases. For example, we see Facebook constantly measured down to last-click attribution. But social channels are brand introducers. They are top of the funnel. As a test, try looking at the 'assisted conversion' report in Google Analytics and see how much revenue they are influencing overall.

NB: to be able to do this you'll need to check your marketing team has applied UTM tags to the social urls. If they haven't...a little slap on the wrist is needed ;)

Don't neglect BOTH brand AND non-brand strategies of the sales funnel.

Let me explain: The pre-sales stage is the first part of your sales funnel — this is where your customers are learning about your product or service and deciding whether they want to purchase it. You find these customers through non-brand targeting strategies. e.g if you sell high-heeled shoes, then this customer might well have typed 'high-heeled shoes' into Google to find your website. This is 'top of the funnel' activity that is vital to build awareness of your products and is the very start of the conversation with your audience. The problem? Low conversion rates and stops your marketing team from spending on these terms. Which stops overall audience growth. Which stops revenue growth. These are people who have just happened upon your site during some research and they are therefore the furthest thing away from buying at this stage. But they are super important. Without telling more people about your brand and adopting non-brand marketing strategies, your brand strategy pot with not only not grow, but shrink in time as your competitors get better and steal your customers.

Your marketing function should have clarity on both sides here and be able to feed that back to you quickly and clearly.

Don't overlook your audience's journey through the conversion process.

You need to know who your customers are, how they act and what their journey looks like. After all, a user journey is more than just about conversion. It’s about understanding the different personas that make up your audience — some of whom will convert better than others.

Once you have identified your various audience personas by territory, you should adopt specific strategies to target the most profitable audience areas before moving on to others. This will drive profit first and revenue later.

A brand is the set of expectations, memories, stories and relationships that, taken together, account for a consumer’s decision to choose one product or service over another. - (Seth Godin)

Good marketing involves building a brand that is relevant to the customer, which requires a deeper understanding of who they are and what drives their behavior. This means you need to understand their motivations for engaging with your content or product; what makes them feel good about themselves; and how you can provide value to them long after they've purchased from you.

This type of personalisation isn't easy—it takes time, patience and investment from the board - but it has far-reaching effects on how customers perceive companies' values (or lack thereof). The same goes for ecommerce websites: without elements of branding—in other words, without designing around users' needs instead of products' attributes—you're never going to grow an audience as large as possible because there will always be people who can't find what they're looking for somewhere else when yours fails at providing a personalised experience.

Conclusion

So, in conclusion, owners / CEO's / MD's of businesses that require rapid growth should be wary of measuring their teams marketing effectiveness using only the most visible metrics. There's a lot more to a marketing campaign than its source and the end result. It's about the journey that user takes between these two points, as well as how they interact with your brand after they've converted. By looking at all of this data and putting it into context, you'll gain an accurate picture of what's working and what isn't when you measure marketing effectiveness.

If you have a business in the financial sector and would like to up your marketing game or receive some expert information about digital marketing for financial services, then get in touch with a member of our team!

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