Marketing is a complex art at the best of times, and sometimes the means of measuring your marketing can end up muddying the water. There are a whole lot of calculations, metrics and analytics out there. In a department full of jargon, what’s the best way to see if your marketing is working? In this blog, we’ll walk you through the process of effectively gauging your marketing performance.
How can you measure your marketing?
Some of the most common ways of breaking down your marketing statistics into something more manageable is with simple figures, such as bounce rate, click-through rate, engagement, etc. No metric on its own can tell you all you need to know about your marketing performance, it depends on your goal. Let’s unpick some of these terms and what they can tell you about how well your marketing is working.
Bounce rate is the percentage of people that leave your website after viewing the first page, rather than moving on to others. This might look like a useful barometer for how well your marketing is working. However, it’s not as simple as that. The bounce rate only represents movement, not time spent on each page. For example, if a suspect spends ten minutes on your homepage, reads your mission statement and calls you from the phone number provided, that would still count as a bounce. Despite the fact that your marketing has worked in that case. It’s useful in conjunction with other metrics, but be wary of using this figure alone to measure how well your marketing’s working.
Google Analytics, one of the best free tools for measuring your marketing, let’s you see visitor engagement. This tells us how long visitors have spent on your website and how many pages deep they went. This complements the bounce rate metric well and together they can give a rather good impression of how usable and engaging your website is. However, an engaging website alone won’t bring the clients in. You need to know that your website is attracting the right sort of visitors (those that have a need you can solve and the cash to pay for it), and that’s persuading these visitors to make contact.
The number of emails and phone calls you receive is another metric used to assess how well your marketing’s working. This is arguably better than the bounce rate or engagement, since it actually delivers potential clients to your inbox. But, once again, be careful what conclusions you draw from this metric. Your marketing may be very effective at drawing interest, but if that interest isn’t from people with the inclination and means to buy from you, it’s not the optimal use of your time. Ideally your marketing will attract genuine leads and prompt unsuitable clients to qualify themselves out. This way you can save time building relationships and writing offers for people with no intent to buy, leaving you free to spend more time developing your real prospects.
Take a second and ask yourself; what’s the purpose of my marketing? Getting new clients, increasing revenue or any form of growing your business is probably the answer you have in mind. If there’s one metric you do need to remember, it would be the conversion rate. That is, the number of individuals that are converted from prospects into clients. The other metrics are useful at indicating how many prospects might turn into clients, but don’t forget that conversion rate is the real king of the KPIs. Don’t get lost in metrics when the proof is in the pudding. If your conversion rate isn’t what you want it to be, diagnose the problem and fix it fast!
Shoring up your sales pipeline
Marketing is an investment intended to get results. You can make sure your marketing is working to increase your conversion rate by breaking it down into a sales pipeline. Every business should have a sales pipeline, but how many steps it includes is up to you. The way we usually look at it is like this:
- Suspects → Prospects
- Prospects → Qualifieds
- Qualifieds → Clients
You want a good conversion rate between each of these stages to be sure that you’re marketing is working effectively. Take the time to work out your conversion rate as a percentage and see which stage of the pipeline could be letting you down.
Where are you losing prospects?
If your business isn’t growing, it’s time to see where the leak is. Look at the conversion rate from one stage to the next to work out where your marketing could be letting you down and how to correct it.
Before the pipeline
First off, you need a good stream of visitors coming to your website and social media profiles. If your enquiries, engagement and website traffic are low, it might be worth checking your SEO and branding. Make sure your website scores highly and that your branding is eye-catching enough to draw interest from potential clients. It might also be worth considering paid-SEO or advertising to boost your visibility amongst the your target audience.
Suspects into prospects
So, your website, socials and advertising are performing well. But are getting enough enquiries? If the conversion rate from suspect (potential client) and prospect (first contact) is lower than you would like, there are ways to change that. What on your website is stopping people from following up? Is contact information easy to find? Do you have multiple ways of being contacted? Is the call yo action convincing enough? If you’ve answered yes to these questions and the phone isn’t ringing, it might be time to take the initiative and approach your suspects first. Software like CANDDi can help you track visitor behaviour and see who’s likely to buy.
Prospects into qualified
This conversion, from the initial enquiry to a firm offer, is one of the most important in the pipeline. If you’re only qualifying a small percentage of prospects, it’s likely that your marketing needs to be tailored more towards your ideal client. You may be attracting a lot of attention, but if it’s not from people with the means and intent to buy, frankly, they’re not worth your time if it could be better spent developing relationships with real prospects.
Qualified into sales
Once a lead has been qualified, the responsibility for making the sale falls to your sales team. If your conversion rates between all the stages up to conversion are good, then your marketing is functioning as it should. If your business still isn’t growing, then maybe the problem lies elsewhere.
How can sales find out how they failed to sell?
The best solution is often the simplest: just ask. Prospects that don’t buy tend to fall into three categories:
- Those that were won by the competition.
- The ones that didn’t buy from anyone.
- Those that shouldn’t have been qualified through your sales pipeline.
If you find that most of the clients you failed to win fall into the latter category, it might be worth reassessing your ideal client, or adjusting your marketing to appeal to the right kind of buyer, whilst simultaneously filtering out unsuitable leads.
The main thing to remember is that marketing’s purpose is to grow your business. So don’t bother improving engagement, bounce rate, or other metrics if your revenue isn’t rising. Follow the steps above, look into your pipeline and diagnose the problem. There are a number of different fixes available any weak points in your marketing plan.
If you would like help with the diagnostics, treatment and cure of your marketing ailments, why not contact us? Call us on 020 8634 5911 or click here.