By Amy Duchene
As I’ve previously confessed, I’m not much of a numbers person. I excelled in math classes throughout my school years, but once I decided on a creative career path and formally acknowledged that I’m a word nerd, my math brain shut down. I struggle even to balance our personal budget.
This blissful ignorance – eschewing numbers – was mostly fine when I was in a purely writing and editing role. But once I switched over to marketing, I realized I was in for a problem. In business, math isn’t going anywhere. In fact, tracking metrics (the right ones) and determining hits and misses is a critical part of a marketer’s role.
If you’re in a similar position, welcome to the club. In today’s post I want to offer a primer of the key lessons I’ve learned – things that a marketer needs to keep in mind when measuring for success.
Learn to speak the language: marketing metrics vocabulary
There’s an alphabet soup of acronyms that you may encounter when talking about marketing metrics. If you’re already familiar with these, feel free to skip ahead.
“Return on Investment” (ROI) is a favorite in the business world. It basically answers the question: “Is the effort or cost of doing this thing yielding a positive return to our business?” It’s a powerful stat that can help justify – or kill – the project that you’re working on.
“Key performance indicators” (KPIs) are benchmarks of the main operations of your company. KPIs are useful in helping you get a pulse on how your business is performing. The numbers and calculations – what you’re striving for – may evolve, but the KPIs are likely to stay standard year in and year out. I can’t tell you exactly what your business’s KPIs are, but I encourage you to spend some time thinking about them and ensuring you’re tracking the right things.
“Comps” help you see how your efforts performed this time around as compared with a previous period. For example, you may compare month over month (“MoM”) or year over year (“YoY”).
When tracking digital efforts like web pages or email blasts, you’ll run into another set of terminology. There are “impressions” (how many times your page or ad displayed) and “clicks” (how many times the reader took the action to click a page – to view another page, for example). “Open rate” and “click-through rate” (CTR) are also key terms. Another “c” term, “conversions,” may be the ultimate metric: It helps you know how many people took the desired action – for example, purchased your product.
“Customer Lifetime Value,” or CLV, is a newer metric, which started to be tracked more recently by marketers and brand loyalty experts. CLV is not easy to hard-stamp. It’s less scientific and more about how long your current or new customers will stick around.
Bottom line: There’s a lot you could track – but that doesn’t mean you should track every single thing, as I’ll explain momentarily.
Who cares about marketing metrics?
Who within a marketing org Go to the full article.
Source:: Business 2 Community