Metrics are a marketer’s best friend – but some matter more than others.
Gini said it’s easy for everyone, marketers included, to get caught up in ego-driven metrics like traffic and bounce rate at the expense of harder metrics like leads and conversions.
“It’s hard not to say “our traffic has doubled”,” Gini says. “But you really have to dig further than that and figure out the cause.”
You don’t need to be a mathlete to dig deeper into the numbers, though. Here’s a breakdown of Gini’s top tips for analyzing the Metrics That Matter!:
1. Funnel customers to hot lead areas
Spin Sucks, the blog that Gini works so hard to maintain, didn’t start producing results until she looked at the right metrics. Gini found five areas of the site that most often turned shoppers into buyers. Now everything she does has a contextual call to action that drives people to those conversion pages.
These calls to action have the added benefit of showing how customers access your site and allow you to push what’s working.
2. Set a goal for success
Are you meeting your goals with your marketing? The formulas to find out are simple.
(Marketing Spending + Expenses) X Desired ROI = Your Goal
(Team Salaries + Benefits) X Desired ROI = Your Goal
Assume that a marketing department spends $100,000, has $20,000 in expenses and wants to have a ROI of 5:1. To meet that ROI goal, the marketing department must make $600,000 in sales. (($100,000 + $20,000) X 5 = $600,000)
3. Use soft metrics carefully
Soft metrics—such as media impressions, page views, unique visitors, and social shares—have a place but can’t stand by themselves. Use these statistics as the variables in the more data-driven metrics. Use Google Analytics or Squeeze to discover which content works.
4. Analyze customer relations
Watching the likes on your Facebook page tick up doesn’t tell you what you need to know about your marketing. Measuring engagement is important when looking at social media metrics. Are people sharing the content you produce? Do they respond to posts and comment on them? What is the sentiment of their responses?
With Facebook’s EdgeRank algorithm, the more that people comment on your posts, the more likely the posts will appear in others news feeds. Track what people respond to and produce more of it.
5. Tie metrics into the sales process
It’s a simple process, but one that even offline businesses can implement to see which of their marketing content works. Ask the buyer how they heard about the business or sale during the checkout process. The tracking question provides data you can use to influence how to market in the future. Cut what doesn’t work and focus on what does.
Image: 401(K) 2012 (Creative Commons)