Using analytics and proper Return on Investment (ROI) metrics are an important part of the marketing discipline today. A marketer must understand the impact his marketing campaigns, channels and overall strategy impacts the control environment. A marketer should understand the business through financial and marketing data. Manage to Key Success Factors – many of these factors below are key metrics in today’s marketing arsenal.
- Initial Response
- Open Rates
- Click Through rates
- Conversion Rate / Purchase Activity (Buying Ratios)
- Average Order Value
- Sales per Name Mailed
- Return on Investment (ROI)
- Aggregate Sales from time period
- Volume of Campaigns
- Cost Per Piece
- Cost Per Acquisition
- Cost Per Sale
- Service Levels
- many other Relevant metrics depending on the channel, industry & product
A good marketer doesn’t wait for the numbers to show up in a report, but knows how to dive into the data and knows the levers that different metrics mean. They should know their numbers on a daily basis, sometimes hourly during a major sale. I suggest that a good marketing department should review their performance numbers weekly at a minimum.
Weekly results performance reviews (Budget vs. Best Look vs. Actual performance)
Drive a results oriented organization by meeting weekly (or more frequently) on the success of campaigns/channels/programs
Some key questions to ask:
- Why are we making are numbers?
- Why are we not making are numbers?
- Can we improve upon good or bad numbers this week?
- What action items are being utilized to improve results and what are the results?
- By campaign or channel
- By Department head
Your specific industry or product may have obvious questions to ask that go deeper into the analysis of your actual performance vs. your budget. Each industry looks at different numbers, but gross and net sales, productivity measures and cross channel impacts are normally reviewed by many top tier analytically driven marketing departments.
Finally, don’t beat up people, challenge and motivate them to improve