Over the course of modern marketing, the question has always been, what’s the value of efforts undertaken? The challenge in marketing is that there is no industry standard for what defines success. The metrics that mean success at one company may indicate failure for another.
Everything in marketing has data attached to it. We track and collect everything we can, sometimes to the point that much of it has no relevance. There are plenty of tools that help collect and analyze marketing data, but none of these tools will help you understand what the numbers mean, particularly as they apply to a particular business.
Without knowing what to measure, insights are limited. Worse, by measuring the wrong things, conclusions may take you down a path that can negatively impact business performance. The key to avoiding both is making sure that the performance metrics you track are meaningful and are tied to company and marketing objectives.
To understand what to measure, begin by creating a framework using objectives. Think of it this way: objectives are your vision, analytics are your map to get to your vision. Start with shared objectives and a common understanding of how to fulfill them, then define them with numbers. By setting objectives first, the numbers will have a purpose, and more importantly, meaning. Through execution and analysis, everything will be connected to overarching business goals and specific marketing objectives.
Often companies set arbitrary marketing objectives that don’t contribute to the overall success of the company. A good example of this is "Increase website traffic by 100% for the year". When setting objectives, focus on goals that produce the numbers, rather than focusing on the numbers. Set realistic marketing objectives that will prioritize customers' needs, and hit the numbers, all at the same time.
Company goals are a driving force behind setting specific marketing objectives. Each specific objective requires a numerical value that must be met by an end date. Marketing objectives need to have an impact on the organization as a whole and need to be supported by other departments to be seen as relevant.
Are you collecting an abundance of marketing data that doesn't have relevance to your business goals? Contact us for help building meaningful marketing objectives for your business.