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How to Use Marketing Objectives to Measure Campaigns
As marketers, we know that our advertising and marketing campaigns cost us the big bucks. So, don't we want to make sure we're optimizing the most of our dollar?
Also, wouldn't it be nice if there was some secret formula to knowing what did and didn't work? What our customers did and didn't like? What did and didn't drive sales?
Well... there is. It's called your marketing objectives. *Gasp!* But, how?
Marketing objectives provide insight into your campaign's performance. They make you aware of your strengths and weaknesses.
If you're not measuring these crucial parts to your campaign, you could be missing out on some serious intel. So, here are our tips for leveraging goals and data.
Define marketing objectives and strategy
The first step to this process is- yep, you probably guessed it- defining your marketing objectives. You need to expound on what you want out of your campaign.
These goals should be quantifiable and reasonable. Saying, "I want to increase sales" isn't going to cut it. You need to analyze your current and past figures.
Then, you would select an appropriate figure to increase sales by. Make sure you're not choosing anything that's too out of the ballpark because that certainly doesn't help anyone.
Defining your strategy comes next. This is when you put your ideas to paper and create a real plan of action.
Once you lay out exactly what it is you want to do, it's time to put a figure on it. How much is this campaign going to cost you?
Your return on investment is calculated typically through several figures. You'd look at fixed costs, such as printing and packaging from paper mail ads.
You'd also have to consider costs of advertising from other traditional efforts- print, radio, television, etc.
Don't forget about your digital marketing efforts- that's a whole other story. (You can learn about that here.)
Then, lastly, you have to determine the cost to pay employees hired for your project. This could be freelance writers, editors, designers, etc.
This is where tracking your sales comes in. Analyzing these figures is the only guaranteed way to understanding performance.
Once your campaign begins, there are several ways you can track the success of its performance. Here are some of the more common ways to execute.
When giving your customers a print coupon, include a scannable code. They must present this code for the sale price.
Why? Because then you can track the purchase to specific elements within your campaign.
The best way to do this is to be selective in where you put your coupon code. When you put this in every source possible, you can't really track back to the specific campaign.
So, perhaps you'll only include the coupon in a print magazine or newspaper. Also, you could include it on a post on your Facebook page for them to print off.
Do you plan to advertise through television commercials? If so, you should consider creating a separate number for your campaign's ads.
This way you can directly trace the phone orders back to the ads you put out.
What's great about this method is that you can easily modify current advertisements to include the new number.
Often times, you won't see a number listed until the very end. So, your staff should be able to make adjustments as necessary.
Unlike the print codes listed above, the customer handles entering in this information. Give your customers an easy 4-6 digit access code for promotional merchandise.
Having customers enter in codes at checkout is another way to track back to your ad. They could also have the option of saying it out loud during a phone order.
This is a great measuring tactic for print advertisements. You can display a readable code for customers within a magazine, newspaper, flier, etc.
This is where those digital marketing efforts come in. There is plenty of software online that track results to SEO and PPC advertisements.
These software programs are able to track readers, shares, and clicks. With this information, you track purchases back to your published online content.
What's my return on investment (ROI)?
Now that you've figured out what sales proceeds are attributed to your campaign, the fun part comes in. By how much did my sales overseed my investments?
And, more importantly, did I meet my marketing objectives in a cost-efficient manner? Do I need to make adjustments to my objectives to secure further success?
Use this formula below to calculate your ROI:
Subtract your cost of investment from your gain of investment. Then, divide that sum by the cost of investment again.
For instance, let's say I spent $10,000 on campaign advertising and made $22,000 in sales. (These figures are intended to be more easily understandable.)
22,000-10,000 = 12,000
You would then take 12,000 and divide that by 10,000 again. That would give you 1.2. Your return on investment would then be 120%.
Was my marketing investment worth it?
The answer isn't black and white. Many speculate over what makes for a good ROI within marketing campaigns.
So, the answer to this ultimately boils down to your own company goals. You need to determine if your investment helped you reach your marketing objectives.
This is where you go back to that "I want to increase sales by XX%" goal. Did your objectives get you to that goal?
Reflect back on the standard you set for yourself and first determine if the goal was met. But, if it wasn't, also consider the other factors that may have made it unsuccessful.
Was your objective set too high? Too low? What would you change in the future?
Increase your marketing ROI over time by analyzing your performance
It's critical that you constantly track the success of your marketing objectives. If you're going to spend so much time working on a campaign, you'll want to extract those key insights into its effectiveness.
You can use these insights to adjust your strategy in the future. Your results now will help you indicate which marketing objectives you should set bolder or milder expectations, and then you'll also know where you want to invest more marketing dollars. The more you apply what you learn from tracking your marketing objectives, the more you can increase your ROI the next time around.
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