Measuring the success of digital campaigns is an integral part of any good small business marketing plan. This is because understanding how well you are performing across different areas of your strategy will help to pinpoint its strengths and weakness, allowing you to refine future campaign plans.
Fortunately, there are plenty of cheap or low-cost tools out there to help you dig up some relevant data such as Google Analytics, Bing Analytics, and the analytical tools on social media sites. They may seem a little confusing or tricky to use at first, but you should get to grips with them after a few hours of exploring their capabilities.
What sort of metrics should I be measuring?
It is up to you which sorts of figures you want to uncover using your analytic tools. However, starting with the following metrics should provide some useful insight into the effectiveness of your small business marketing strategy:
1. Lifetime value:
This represents how much money you take in from an average customer across the entirety of their business cycle with your company. It can tell you whether you have repeat customers and how long they are likely to keep coming back for and could inform future customer retention strategies.
2. Customer acquisition cost:
This an important figure that tells you how much you typically spend on acquiring a new customer (i.e. marketing expenses) compared to how much they contribute to your profits. Generally speaking, they should bring in at least three times more than they cost if your marketing strategy is to be considered effective.
3. Digital engagement scores
These include how much time customers stay on certain pages, bounce rates for your website, how many click-throughs social media posts or marketing emails receive, and how many people are clicking on your paid ads. Picking apart these individual metrics will tell you which are the best channels to focus on for your business.
Refine your strategy
Once you have got to grips with finding and recording metrics, it is time to put them to good use. Weigh up the efficacy of every aspect of your strategy compared to its cost. Whilst there is some degree of trial and error to every marketing plan, having the figures to hand will help to guide you in the right direction. These are just a few ways as to how small businesses can measure their marketing success, check out some of our other articles for more tips!