How good are you at measuring things?
In life, albeit subconsciously, we constantly assess and review things. We might try something new or a different brand and then be mindful of how good or bad it is as we use it. Then, we might get a compliment which reminds us of what we have changed and if that product or service runs out too quickly or lasts for ages, we will make an assessment of its quality or value for money.
What about measuring how you marketing your business? I speak to many business owners who carry out marketing activities but a fair few have no idea how well they are working or not and this often comes down to a lack of understanding of how easy it is to measure their activity or why even to measure it.
So, here are three steps to better marketing measurement:
Step 1: Work out ‘what’
Write a list of everything you do that relates to growing your business. Use a spreadsheet and include the total monthly or annual cost and remember to include any time you spend promoting your business, even if it’s free or “just” your time. This overview will instantly tell you whether your marketing is worthwhile or needs improving. Keep a note of where your leads come from and think are they usually referrals from people you already work with or from social media or a specific advert, for example?
Step 2: Appreciate ‘why’ you need to measure
For us to value spending time on any activity, we need to understand its value. So many people don’t measure the results of their marketing. This, in my experience, is either because they don’t know how to, or because they don’t understand the value of doing so. To quote marketing guru, Peter Drucker, “if you can’t measure it, you can’t improve it.”
So, why do you need to measure your marketing activity?
- Make informed decisions. Is it worth the money or time spent? Does it reach the right audience? Are you sending the right message?
- Take less risks. If you don’t know how well something it is being received by your target audience, how do you know where to invest time or money?
- Save time and money. This is an extension of the above points. If you are advertising to no avail, stop the advert and spend the money elsewhere.
- Understand what works for your business. Not all marketing works for all businesses. For example, LinkedIn is excellent for building business-to-business relationships but if you sell hand-crafted gifts, you are better off on Facebook or Instagram.
- Ascertain where to follow up. By measuring the activity related to an advert or promotion, you can see who is interested and follow up. This often generates leads as it is personalised.
- Understand and check reasoning. You may think your audience is on Facebook but, if your marketing there isn’t working, you should review your ideal customer persona.
- Increase your chances of success. If you continually try new ways to market your business, measure and refine them, they will become ever more effective.
Step 3: Understand ‘how’ best to measure
These days, most marketing is digital, so measuring is easier. However, if you are not technically minded, it will take a little effort to set everything up. I promise you it’s worth it as the time you spend each month checking your return on investment will be minimal. Ways to measure your marketing include:
- Tracking social media profile follows / likes / comments / shares
- Checking Google analytics to find out about website visitor numbers and what they clicked or saw to find you
- Monitoring email marketing opens / click throughs
- Keeping count of networking leads and referrals
- Using your accounting system to work out what marketing gives the best return on investment (ROI)
I hope these 3 steps make the idea of measuring your marketing clearer and encourage you to do more of it. My last tip is not to get obsessed by numbers. Remember the old adage, think quality not quantity.
If you would like help with measuring, ROI and accountability on a regular basis, maybe check out our accountability and consultancy package