Measuring your marketing efforts, what you need to know

Growing up, Christmas at our house was always chaotic. My mum started early in the kitchen, while my Dad’s one and only job was to cut the tree into its stand. 

Both of my parents were loud and stressed while I was plonked in front of the TV to watch Transformers in my best festive mood.

Falalalala lalalala

For context, in Hungary, Christmas Eve is the big one when we decorate the tree, then celebrate the birth of baby Jesus with a massive feast at dinner time, then give out the presents. Did I mention that I’m from a Jewish family? So, yes, chaos.

Anyway, back to the main event, my Dad. We bought a cut, live tree each year a week before Christmas. Every year on the morning of Christmas Eve, my Dad huffed and puffed out onto the balcony, armed with an axe, a saw, and a hammer.

Jingle bells

Approximately 10 minutes after the real show began. Every year, my Dad inevitably hit a finger, or kicked a toe while being entangled in the sharp and pokey tree branches. Coincidentally, my vocabulary had also expanded with a few colourful words.

Every year, my Dad spent hours on the balcony in the cold, trying to jam the tree into its stand but it was either too thick or (a considerable amount of time later), too thin. You may wonder, why?

According to my Dad, “measuring is just fluffing about'' (not with these words). “It’s for amateurs.” Not long after that he’d usually hit his finger, I’d learn my new words for the holidays and then he was off to the pub for a wee-minute first aid.

Count your blessings

I don’t think I really have to point out what went wrong with my Dad’s Christmas operation, now do I?

It wasn’t his festive blessings he needed to count but the trunk’s circumference in centimetres, along with the stand’s. Could’ve saved him a world of Christmas anguish. (Though one could argue he did have a clear end-game in mind).

The moral of the story

You should never start anything without a clear plan and you should always base all of your marketing efforts on clearly measured data. I sucked you in again with my story, didn’t I?

To get to the boring but necessary part, measuring marketing efforts is important to gauge the success of your marketing campaigns. You need to track your key performance indicators (KPIs). 

They are one of the most important elements of any campaign, and without them, marketing teams wouldn't have a clear picture of whether their marketing strategy is a success.

Ok, but what to measure

This is kinda tricky. It always depends on the overall goal of your campaign. E.g., if you’re running an awareness campaign, you should measure the number of enquiries, growth in your social followers, engagement with your content, website visits, etc.

If you’re running a sales campaign, you should measure your leads, conversion, ROI, your general costs, and really just how you actually acquired that sale. This means that you also need to break down your channels, and measure their individual activities.

Key metrics to measure your marketing strategy

SHOW ME THE MONEY! Let’s be honest, it’s all about those crispies. So, measuring marketing effectiveness will always come down to costs. Here are some of the common KPIs you should measure for each of your campaigns, regardless of the type, channel or medium:

Return on Investment (ROI)

This bad boy measures the sales revenue a campaign brings on every dollarydoo spent. Let’s say you spend $1,000 on a campaign that ends up generating $5,000 in sales. So, your ROI is $4,000, which is 400%. Time to give yourself a pat on the back. 

Honestly, ROI is the best KPI to measure the effectiveness of marketing campaigns because it also measures the quality of the leads your campaigns generate.

Cost per Lead

Cost per Lead measures the cost-effectiveness of your marketing efforts. This time we’re focussing entirely on the leads generated by your marketing campaign (though not measuring the quality of the leads). 

Using my smashing example from above, let's say the $5,000 generated from five sales, so $1,000 profit per sales. With your $1,000 budget, the Cost per Win is $200 per sale. 

Now, the five sales resulted from 10 leads. With the same $1,000 budget, that is a cost of $100 per lead. Now, we’re really getting somewhere.

Conversion Rate

While I’m throwing around some numbers, we best look at the conversion rate as well. It is crucial to measure not just your overall website conversion but your individual marketing campaigns’, too.

For example, if this fabulous campaign brought in 1,000 visitors, from which you got those 10 leads, that means you have a 1% conversion rate. The conversion rate combined with bounce rate and other behaviour information reveals a great deal about the quality of traffic to the website.

Beware of vanity metrics

Are you still with me? Great. So, cool, we're looking at the traffic to your website. You’re getting visitors and leads, the numbers are going up and you’re super happy. “Look, we’re doing so well!”

Are we though? Measuring the number of visitors to your website, or the number of leads your campaign has generated is nothing more than looking at some vanity metrics. They are pretty, but a bit of an airhead. (For my lady readers, he’s a hunk but wipes his nose on his sleeve).

What do these metrics really tell us? Website traffic growth is good but we need to dig deeper. Are you getting the right type of visitors? 

Leads are certainly great, but are you getting the right type of qualified leads? The problem is that these metrics don’t accurately represent the effectiveness of your marketing efforts when it comes to reaching your specific business objectives.

So, say it after me: “Cost-related KPIs are my best friend!”. Or something like that.

Adjust your marketing strategy in real time

I also want to touch-base on something important before I let you go. This is a good one. Digital marketing allows us to measure campaign activities in real time. Meaning, whatever works in your campaign can be duplicated, amplified, sent to space, whatever. 

Similarly, whatever doesn’t work can be adjusted or eliminated for the best results. All you need to do is to set up processes and systems to encourage your marketing team to measure, evaluate and implement smack bang in the middle of your campaign for the greatest marketing outcome.

I still have the best Christmas memories

Relax, I’m not going to let you wander off without knowing what happened to our family Christmases.

Every year, our tree got wedged into its stand in a makeshift way, with my Dad standing next to it like the true hero that he was. 

My mum managed to roast the turkey to perfection, and hide the brussel sprouts among the rest of the veggies. I repeatedly impressed my cousins with my newly acquired festive vernacular. 

Most importantly, I’ve graduated into adulthood with the greatest lesson learnt, fake trees come with their own stands. No measuring required, falalalala lalalala.

Struggling with your data analysis and measurement? Don’t know how you should get going with it? Why not comment below with your enquiry or give us a buzz?

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