Let’s measure our marketing performance– multidimensionality is key!

Well, there you are, sitting in your little office behind your laptop staring at a bunch of data. Managers need to know how their business is performing. And managers need to know how their brand is performing. Short: they want to know their brands value. That’s when marketers come into play and to report the marketing performance  part of the company’s brand value. Using marketing metrics as a measurement tool helps to stay on top of things and reveal weak spots that need to be improved – according to the motto: what can’t be measured, can’t be managed. In that progress marketing metrics focus on a variety of different areas including finances, customers and brand awareness. Lamest (2016) even pictures them as lens through which data is approached, convert it into information and finally into knowledge that can lead to important decision-making.

marketing-metrics

While facing the task of deciding what metric suits the company’s goals best, Ambler and Roberts (2008) state, that a single silver metric is not geared to provide an adequate rendering of its situation. Instead multidimensionality is supposed to be key for a comprehensive analysis of the company’s performance. According to that, they recommend the use of as many metrics as there are goals of the company. Alright, that solves the problem of picking just one particular metric but causes the challenge of paying attention to the whole picture.

Digital marketing metrics

One thing that should not be disregarded in that context are online or digital marketing metrics. Especially with regard to the everlasting discussion of whether marketing activities are expenses or an investment, the demand for cheap and efficient solutions is high. Digital marketing metrics are a useful tool for all kind of online content that is provided by the company, e.g. websites, videos and campaigns. Having said that, it is important to note, that these digital metrics serve as an indicator especially with regards to the behavioural, memory and customer metrics.

Basic metrics

Basic metrics generally cover everything regarding the consumption, e.g. how many visited the website or viewed the video. Please not that quantity does not necessarily refer to quality which is why especially page views are normally seen as a sole vanity metric, however reflecting the company’s popularity. Apart from that, platforms like Google Analytics can help to track the location of customers and the channels they used in order to adapt the current strategies.

Engagement metrics

Apart from the “normal” basic metrics that give a quick overview about the who, what, when and where, it is interesting for a company how long the customer is dealing with the specific content. Especially with regards to customer loyalty as part of the behavioural metrics. In that context e.g. social media is very helpful with its options to comment, retweet or share contents.

digital-marketing-channel-converted

Source: SMstudy 2016

 

Click here to read more about the top 10 online marketing measures you need to take into account when running a website.

Missing the forest for the trees

Since it is hard to measure the effectiveness of a digital content it is even more important to spend time on setting objectives before starting to create for example the new video for the campaign. It is easier to decide whether something is successful when you can pit the objective against the actual result. Surely, there are multiple metrics that should actually help measuring the company’s performance but quite often lead to confusion and overextension instead. Whereas Ambler and Roberts (2008) support having a set of metrics, I suppose organisation is the real no. 1 when it comes to marketing evaluation. Nevertheless, I agree that there cannot be a single ultimate metric that suits every company.

So , what does it tell us? Measuring the company’s or brand’s value is not easy and can get quite overwhelming. Even though digital marketing metrics do not tide over the fact that several metrics are needed to create a proper overall picture, they still facilitate the calculation, comparison and interpretation of the marketing performance.

 While multidimensionality is the key to achieve a profound impression of the marketing performance, it is even more important to keep track of the variety of metrics and put them together to the one individual measurement tool that suits your needs best! 

posted by Ronja Naudorf (rnaudorf -215466308)

References

Ambler, T, Roberts, JH 2008, ‘Assessing marketing performance: don’t settle for a silver metric’, JournaSl of Marketing Management, vol. 24, issue 7-8, pp. 733-750, doi: 10.1362/026725708X345498.

Lamest, M 2016, ‘The Role of Marketing Metrics and Financial metrics in Guiding Top-level Management’, doctoral colloquium paper, School of Business. Trinity College, Dublin, retrieved 26 September 2016, <https://marketing.conference-services.net/resources/327/2958/pdf/AM2012_0352_paper.pdf>.

SMstudy 2016, Digital marketing, image, retrieved 26 September 2016, <https://www.smstudy.com/Article/Importance-of-understanding-and-evaluating-Digital-Marketing-Channels>.

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