Marketing Metrics That Matter
To trust your marketing, you need to measure it.
Business owners need to measure their marketing. Period. We’ve all heard it, but many businesses don’t do it. Why? Because business owners almost always hire marketing contractors to implement their strategies. Unfortunately, not even all marketing contractors can afford to measure results completely. OpGo specializes entirely in measuring marketing—we invest in the metrics and analytic tools to give our clients custom insight into their investments. But, for those who want to do it themselves, we’ve compiled our most important metrics here.
Plan a Detailed Marketing Budget
Review the margins on your products and services. Most companies have multiple, so you’ll likely have several corresponding campaigns. Efficient marketing tailors each campaign to its persona with laser focus. Share the uvp on the product in your campaign. Sure, it might sound easier to spend all the budget on one mega-campaign, but customers rarely offer more than a glance at an ad. If they don’t find something relevant, they’ll move on. If you are banking on ROI, spend the extra effort and cost it takes to build a laser-focused campaign.
Analyze Customer Lifetime Value
Analyze your customer list and segment it by purchase behavior. How many customers buy one time and how many buy multiple times? And how long do they stick around? Hindsight is 20/20 so use it to set goals for the future.
Product Margins and Cost Per Campaign
Your marketing team will have more than one idea to market each of your products and services. The concepts they share will require different marketing mediums and costs. Decide what you can afford at this time based on the sales or lead goal for the campaign.
Here are a few examples of mediums that could be included in each campaign:
- Campaign Example #1: Video, landing page, and retargeting.
- Campaign Example #2: Direct mail, landing page, sales team follow-up.
- Campaign Example #3: Programmatic banner ads to a look-alike audience, shopping site, emails to cart abandoners.
Marketing Mix & Channel Specific ROI
- Marketing Mix ROI – Calculate the overall ROI for the year on the marketing mix.
- Channel Specific ROI – Calculate the ROI for each channel. This is easy to do with digital channels. If you are using traditional media like broadcast and print, at least calculate the cost-per-thousand (CPM) and compare it to the digital channels used in the campaign. Typically, the traditional media channels are used to generate awareness and add lift to the campaign. (Testing campaigns with and without these lift channels can provide more insight.)
CAC, CPL, & Close Rate
Analyze the prior year’s marketing investment and calculate the cost-to-acquire a customer, cost-per-lead, and the close rate. This is a starting point when setting goals, aka benchmark.
- Cost to Acquire a Customer (CAC) – How much did you spend last year and how many customers did you acquire? This is the easiest way to calculate your cost to acquire new customers. Even if the prior year wasn’t an ideal year, do the math. If you know the lifetime value of your customers, you can use that info in combination with your margin to assess whether or not your CAC is too high.
- Cost per Lead (CPL) – Calculating the cost-per-lead is very straight forward. What did you spend and how many leads did you get? (Also, assess the quality of the leads—bad leads should not be counted!)
- Close Rate – If you are B2B, you’ll be monitoring your close rate. (How many leads became customers?)
- Customer Lifetime Value (LTV) – The customer lifetime varies among businesses. How long do your customers remain loyal to you? How many times do they purchase and what is the average order value? Once you know this information, you can decide how much you are willing to invest in a new customer.
What’s most interesting about channel optimization is the buzzwords flying around with clicks and impressions. Impressions and clicks are components of calculations—they are simple aggregations that feed calculations like click-through-rate (CTR) and cost-per-conversion. You will use them to optimize digital campaigns, but clicks and impressions are worthless unless you tie them to benchmarks for leads and/or sales.
- Cost-per-click (CPC)
- Click-through-rate (CTR)
- Conversion Rate
Five Benefits of Working with OpGo
OpGo was founded to help marketers suffering from “decision fatigue”. Decision fatigue occurs when all your mental energy is used up—with over 2,000 marketing technology channels, this fatigue can be a frequent occurrence with marketers. Overwhelmed marketers are likely to make some decisions when on auto pilot which can lead to poor return. OpGo provides relief by being the liaison between your marketer and your accountant. We focus on defining the objectives and determining the return of each marketing dollar so your director of marketing can focus on the marketing.
Here are the five benefits of working with OpGo:
Reduce Marketing Decision Fatigue – Most of our clients hire us in lieu of bringing on another employee; they want additional marketing intelligence without having to hire a full marketing team or a full service agency. With all the marketing channels available, business owners and marketing directors become overwhelmed and almost paralyzed by having too many choices and not enough experience. That’s where we come in.
Make Better Marketing Decisions – At OpGo, we rely on numbers that bring in return, not clicks. When clients want to know what this or that means and/or they want direct access to information that is available…we answer their questions in terms they can understand (without charging an additional fee) and show them where the information comes from. We have designed our performance reports to help business owners see the big picture, not just what’s happening right now. In order to make decisions, you have to see where you have been and where you want to go. OpGo’s services are not automated and never will be—we’re not shooting off a report in an email. We are analyzing data and providing insight with explanation. We review many internal and external factors that have an impact on the marketing performance.
Set Marketing Goals – With all the marketing metrics being thrown around, it’s tough to know what to measure, which makes it even harder to set goals. Once our insights start rolling in, clarity emerges and benchmarks are established. From there goals are set. Without marketing goals, one can’t know what each marketing dollar is doing—without baseline knowledge you may miss an opportunity of return had you invested ten dollars instead.
Access Our Partner Network – We do not charge commission on our partner’s services. Our Partners are carefully selected because they are experts–we trust them to do what they do well and we don’t want to muck up relationships with nickel and diming our clients. A big part of success is collaboration and long term relationships.
Avoid “Technology” Costs – OpGo is not an exclusive partner with any technology solutions. We have no ulterior motive to sell you some expensive product in three months. We are not “partners” of some other product. Our prices are lean because we use good ole fashioned brain power—we will never try to “automate” our customer service. Our pricing is strictly based on marketing intelligence of our people, not a product.
Give Us a Try – Tired of having “decision fatigue”? Give us a call or send us an email. When businesses are not sure if they want to move forward, we can always do 8-12 a week pilot to see if we are the right fit. We don’t charge “commission” that is based on your marketing spend. Our rates are based on the amount of work we need to do. So, whether your annual marketing budget is $80k or $500k, our monthly retainer could be the same—depending on the level of support you need.