More than ever, executives are demanding accountability for marketing expenditures.
The need to show return on marketing investment (ROMI) often leaves marketers dwelling on questions such as: How much did this email campaign contribute to the bottom line? How much revenue did that banner ad produce? However, these might not be the best questions to be asking.
It’s highly unlikely that any single campaign or tactic can be correlated on a one-to-one basis with a sale, especially in industries with long and complex buy cycles, and in an environment where your customers use a wide variety of digital tools and information resources to research a potential purchase.
As you begin planning for next year, you might be tempted to drop a marketing program that doesn’t have sales directly associated with it. This may be a mistake, and may lead to abandoning programs that are making real contributions to your overall marketing effectiveness.
Here are four guidelines to help you improve your marketing measurement and ensure that your integrated, multichannel marketing strategy is delivering a positive ROMI. For a more comprehensive analysis of marketing measurement, please download a complimentary copy of the 2018 Marketing Planning Kit.
1. Measure Engagement at Individual Touchpoints
Sixty-two percent of technical professionals wait until at least the Comparison & Evaluation stage of the buy cycle to make contact with a vendor (Digital Media Use in the Industrial Sector). They may have already downloaded a white paper, clicked on a newsletter ad, watched a video, explored your online catalog—and finally decided to reach out. Each of these marketing touchpoints exists as parts of an entire ecosystem of campaigns and they all contributed to this engagement opportunity. Since it’s difficult to match a specific campaign to a sale, try measuring activity and engagement at each touchpoint: clicks, downloads, forms completed, etc.
2. Measure Awareness that Leads to Later Sales Opportunities
Multiple touchpoints—especially early in the buy cycle when prospects are assessing their needs—can help your company establish credibility and be considered when it comes time for engineers to make contact with vendors.
Maintain a broad and consistent presence on the channels that your customers use to help you get noticed early in the buy cycle. You can measure brand awareness by tracking metrics such as impressions, page views, social media shares and mentions.
3. Measure Two Types of Leads
There are two types of marketing leads that can turn into customers: the marketing qualified lead and the marketing influenced lead.
The marketing qualified lead is a lead that marketing has generated through one of its campaigns and passed on to the sales team after qualifying it. Qualified leads are gems. You’ve generated interest from a potential client, and routed that prospect through your lead qualification process. Your sales team wants qualified leads that require less effort and are more likely to convert into customers.
The marketing influenced lead is sometimes overlooked because this lead hasn’t gone through the qualification process and been handed off to sales. It’s less visible than the marketing qualified lead.
However, the marketing influenced lead is any person who engaged with your marketing content before becoming a customer. If these future customers haven’t filled out a form (such as a registration), you may not even know about them yet—but they know about you, and they are being influenced by your marketing content. When they eventually make a buying decision and become a customer, your marketing efforts helped define their path and contribute to their decision, and marketing should get credit for this marketing influenced lead.
4. Don’t Measure Only the “Last Click”
The “last click” attributes a sale to the last marketing-related touch point a customer has before making a buying decision. Last click attribution is a mistake because we know the buy cycle includes many campaign touches that cumulatively add up to help achieve a sale. Today’s path through the buy cycle crosses multiple devices, platforms, sites, and user needs and behaviors. Last click ignores the many supporting tactics that help drive a purchasing decision.
Find out more about marketing measurement, plus gain access to tools and recommendations to build a stellar marketing plan, in the just-published 2018 Marketing Planning Kit. Download your complimentary copy today.