should begin to standardize marketing measurements across their: - sales channels - business units - media With standardized measurement, you can get closer to the more complex process of tracking:
- Corporate Brand Equity
- Market Share - Marketing ROI - Product & Customer Profitability Cost to Generate Traffic Multichannel marketers are tracking the costs to generate traffic to their sites from all possible sources.
These often include the costs
to complete the transaction, which can include a call center or the technical support of the site itself. Marketing Spending Metrics Marketing Spending Metrics are often looked at to try to establish the ROI value of incremental spending. Some of the measurements in this area include cost per impression, reach, frequency, share of voice. Visitor Acquisition KPIs Visitor Acquisition KPIs are used to understand the health of the sales funnel.
Types of things you’d need to define first:
• What is a visit? • What is the source of the visitor? • What is a return visitor? • What is a unique visitor?
Tracking sources often requires the integration of
multiple reporting tools. Site Effectiveness Measurements
Look at the conversion
effectiveness of the site or channel.
The sales funnel is critical
here.
How efficiently can a visitor
be turned into a customer? Conversion Metrics Definitions are critical in conversion metrics – especially if the conversions of one channel are to be compared to others.
What does a conversion mean?
The problem of properly attributing conversions to
their sources is common and must be consistent across each channel. Buyer Metrics Buyer Metrics includes the frequency of purchases, or the retention rates of customers that can be rolled up to overall market share, brand equity and/or customer lifetime value. The most quoted Buyer Metric is typically the Average Order Value, or the AOV, which is used to understand and compare different groups of buyers. Revenue Multichannel and e-commerce marketers track revenue carefully to compare the margin generated from each channel, to determine the value of incremental sales, and to guide pricing and promotion decisions. Customer Loyalty & Profitability Companies use these metrics to understand the value of their individual customers, regardless of which sales outlet they have chosen. Again, this is an area where definitions are critical from one channel to the next. The methodology for the measurement of loyalty and customer-level profitability can vary considerably from company to company, depending upon the purchase dynamics of the product. Profitability and ROI Categories of Metrics can include: - Channel margin from each channel selling different products. - Performance compared to sales target - Net Profit - Return on Sales - Return on Investment - Net Present Value - Return on Marketing Investment And so…
Any one of these 9
key marketing metrics can be challenging to reach without integrated databases and mark eting technology. Creating clear definitions across departments and channels is critical. As data and tools begin to converge,
more and more marketers are
building their ability to measure these key performance indicators and use them to make smarter decisions across the marketing organization.