You Just Can’t Measure Great Marketing… On wait, Yes You Can!

Written by Mary Blevins on .

“Can a great job of marketing be measured?” Measure great marketing sure, it’s possible to measure and perform an ROI analysis on your marketing efforts, and we will be looking at some ways we can do this. Measure the rate of return on your investment in a specific plan or decision. Measure the rate of return on your investment within a particular plan or decision. This will measure how much revenue is generated relative to costs, the higher the ratio, the better.

Return on Investment (ROI)

It’s possible to measure and perform an ROI analysis on your marketing efforts. Here are a few numbers you can use for reference when measuring success: – If you’re generating sales from a campaign with a Return on Investment (ROI) greater than 25%, that campaign was a success. – If you generate sales from four movements, each with an ROI of 10%, those four campaigns are equally successful.

  • If you invest $100,000 in marketing and receive back $300,000 in sales, that’s a 300% ROI on your investment. – If you’ve spent $200,000 on marketing over six months and received back shy of $500,000 in sales during that time frame, the ROI is around 230%.
  • The more resources (money) invested into any marketing campaign means it must deliver more value (sales). A campaign with a 30% return would be unsuccessful if it only cost $10K to run. But if it cost five times as much, $50K, it would be a success. – It’s possible to have more than one campaign running at any given time. – ROI is often used in conjunction with other metrics to pinpoint where budgets are being spent most effectively.
  • This measures how much revenue is generated relative to costs. The higher the ratio, the better. – If you’ve spent $200,000 on marketing over six months and received back shy of $500,000 in sales during that time frame, the ROI is around 230%. That’s a great return on investment! – The more resources (money) invested into any marketing campaign means it must deliver more value (sales). A campaign with a 30% return would be unsuccessful if it only cost $10K to run. But if it cost five times as much, $50K, it would be a success.
  • It’s possible to have more than one campaign running at any given time. – ROI is often used in conjunction with other metrics to pinpoint where budgets are being spent most effectively.
  • ROI is often used in conjunction with other metrics to pinpoint where budgets are being spent most effectively.

So, in this article, we are trying to say that you can measure how effective your marketing campaign is based on the following things: # of sales generated per $ spent, # of leads generated per $ spent, and # of sales/leads generated per time spent on marketing efforts. These are all great metrics to measure the success of your campaigns!

I agree that you cannot always be sure about how well a campaign is doing or how successful it is- especially if there isn’t measurable data. There are so many things that may affect the outcome of your campaigns, such as media coverage, industry trends, etc. I’ve heard so many people say, “it’s working because…” but genuinely haven’t been able to find out why it’s working so well their gut feeling. But even those people couldn’t prove how those campaigns were affecting those results. What was most effective? The placement of the ad? Which media channel/placement is producing the most results for my company?

Measure Great Marketing

KEY PERFORMANCE INDICATORS

However, it’s important to utilize those metrics as much as possible and incorporate them into your overall strategy. You can’t just go on hunches or faith that it’s working if there isn’t any data to back up these assumptions. Without testing, one never knows what will work best for their business! It’s all part of how you Measure Great Marketing.

A.) ROI – Return on Investment

This measures how much a campaign earned instead of initially spent to launch marketing. This is the best way to measure the effectiveness of all marketing campaigns

On top of finances, this also accounts for, and measures leads and the quality of traffic

B.) Cost Per Win

This measures the expenses involved in each sale. This is most effective to compare one marketing campaign versus other expenses involved in each sale 

C.) Cost Per Lead

Cost per lead, often abbreviated as CPL, is an online advertising pricing model, where the advertiser pays for an explicit sign-up from a consumer interested in the advertiser’s offer. It is also commonly called online lead generation.

Conclusion:

There are so many measurements that can be taken for marketing because there are so many variables at play. It’s never possible to consider every metric when working with a marketing campaign. Still, if you narrow things down – focusing primarily on ROI – then there’s usually no reason why something would not turn out well for you in the end. 

The best thing about gathering all this information is that there are online tools where marketers can access these detailed analytics reports without having much technical knowledge or hiring an outside agency. This is excellent news for businesses who need information quickly and need to maximize their time as well.

In conclusion, marketers should consider ROI, cost per win, and cost per lead when working to quantify the success of a project in their business. If a company cannot prove ROI for a marketing campaign, it probably should not spend the money on it. This is because you can measure whether something works by breaking down metrics and finding patterns in the data. So, by doing this, you should figure out what is working to continue to do more of it with your marketing campaigns! 

It is essential to not focus on either costs or leads but to look at them in tandem with one another because these metrics are critical for business success. If you don’t have enough leads, it will be hard to make money; it will be challenging to get results if you do not spend enough money.

You can’t measure great marketing. Hang on, wait, yes, you can! 

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