Once your marketing strategy has been established, you’ll need to come up with a way to measure its effectiveness. It’s not enough to simply put your strategy into action; you need a way to assess its success, so you can tweak the next campaign to better suit your needs.
As with developing a marketing strategy, you need to have specific goals in mind when measuring the effectiveness of your marketing strategy. Are you trying to increase revenue? Generate more leads?
Once your company’s goals are solidified, you can establish key performance indicators (KPIs), measurable metrics you can use to analyze the success of your marketing strategy. The KPIs you choose to track, as well as how often you track them, will depend on your organization’s goals. There is no shortage of KPIs to choose from—below, we’ll cover a few of the most common.
Return on Investment
Return on investment, or ROI, measures the sales growth per dollar spent on the marketing campaign. To calculate ROI, subtract the cost of the marketing campaign from the sales growth, then divide the result by the marketing cost and convert it into a percentage.
For example: if $300 was spent on marketing costs and sales grew by $900, your company would have made a 200% return on investment.
Cost Per Lead
Looking to improve lead generation? Track your cost per lead to determine how much each new lead costs your company. Divide your marketing spend by your newly gained leads—be sure to keep the timeframe for both factors consistent.
For example: you spent $1,000 on your three-month marketing campaign and gained 50 new leads in those three months—that’s $20 per lead.
Knowing your cost per lead can help you determine which channels, platforms, and strategies are most effective when it comes to lead generation. In addition, it gives your sales team a guideline for an acceptable amount to spend generating new leads.
Click-through rate, or CTR, can help you assess the quality of your website or digital ad campaign, as well as measure engagement with your social media channels. CTR can be calculated by dividing the number of clicks your link received by the number of people who saw the link (also called impressions), then converting it to a percentage. Both clicks and impressions are typically measured by your online advertising platform.
For example: out of the 250 people who saw your ad, 50 clicked on the link, making your click-through rate 5%.
It’s important to note, CTR doesn’t factor in the quality or reason for the click—whether it was a customer looking to make a legitimate purchase or an accidental mis-click.
Whatever your marketing strategy, promotional products are a fantastic way to increase brand awareness and keep your company’s name front and center in your clients’ minds. Shop promotional products on the Facetime Business Resources online store, or visit our blog for more tips on optimizing your marketing strategy.