Measuring the Value of Marketing
Measuring the success of marketing efforts should be easy. After all, it is as simple as showing they make more money than they cost. However, for many dealerships, those results can be elusive or unclear. Marketing success is more than simply a measurement in money.
A survey by Duke University’s Fuqua School of Business notes that more than 60 percent of CMO’s feel pressure from higher ups to prove the value of their marketing efforts. How do you prove it? Whether you are the boss or trying to show your superior the ROI of your marketing efforts, there is plenty of data to use. The key is using that information correctly.
Measuring marketing success requires defining what success is. Setting firm marketing goals, determining the results you want to see, and setting a marketing budget can all help determine if marketing efforts are succeeding. The best way to show trackable results is to create a monthly marketing report. This puts all the information in an easy to understand format and enables you to track results over time. It also enables you to make adjustments to improve results. But what needs to be included in your monthly report? Much of the information is already available, if you use an accounting program like QuickBooks.
Marketing’s Impact on Sales
— Measure increases in sales due to quality leads provided by marketing efforts. Including this information in your report shows a direct correlation to marketing efforts in terms of money.
— Identifying the value of some marketing efforts, such as social media, can be a little more difficult. But highlighting the number of leads from each source can provide a clear picture of the value of those efforts.
— One statistic that can provide insight to marketing efforts is an increase in web traffic. The number of page views and decreases in bounce rates, in addition to the number of Facebook shares and Tweets can all show measurable results to marketing efforts.
— While statistics and numbers can be the easiest to interpret, customer feedback shouldn’t be ignored. Include suggestions and positive comments from customers. Seeing your business through the eyes of your customers is important in any marketing effort.
Search Engine Ranking
— SEO still remains important in marketing terms. How your business ranks in the search engines plays a major role in how many customers find you. Tracking your search engine standings will give you a better idea if your marketing is helping you build search engine results.
— Brand awareness is crucial. Evaluate your brand with surveys, third-party tracking, and analytics programs.
John Murphy is a market researcher, entrepreneur, and marathon runner