With consumer behavior constantly changing, the need for companies to consistently measure their marketing ROI in order to determine the impacts of their marketing campaigns cannot be over emphasized.
Professional marketers and developers know this and are constantly searching and reinventing new approaches to marketing. This has given birth to several new marketing technologies and causing rapid evolution in the marketing models taking place with hundreds of different software crowding the market.
The continuous changes in marketing models have presented both consumers and marketers a range of choices and an array of new technology to support marketing decisions and programs. New marketing techniques require new financial mindset, new analytic tools, and some additional skills so that system will better support marketing decisions.
As we continue to advance towards making marketing more accountable and scientific, it is important to look at what has changed and what is left of the old model.
But before we do that, what are marketing models?
Marketing models are strategic statistics created to estimate the impact of multiple marketing tactics on sales so as to correctly forecast future outcomes of marketing campaigns.
For example: creating a conversion action in your Google Ads account would be a first step to conversion tracking. A conversion action is a customer activity that influences your business positively. With conversion tracking, you can track the responsiveness of your ad campaign and analyze the cause of action your targeted audience took in response to your campaign.
Meanwhile, as marketers are enjoying new media and technology-enabled tools, the basic goals and reason for marketing itself has not changed – consumers and businesses are still very much in need of useful products and services, as well as, relevant and entertaining messages.
Marketing is still about identifying and solving a need so that people can patronize your business or services.
The change however, is in the medium through which consumers can learn about your products and services, and how they interact with them. Some of these new and existing mediums include:
- Responsive Websites
- Search Engine Marketing (SEM) – SEO and Paid Search
- Online Display Advertising
- Social Media – Facebook, Instagram, and Twitter
- Mobile Marketing – Targeting users on specific devices
- Email Marketing
- Dynamic Out of Home Marketing
We are officially in the post-mass-media marketing world!
And for marketers, the change comes in the form of – Data problems, multiple ad channels, emerging devices, and too many tools. The list goes on and on.
Inundated with the click stream media, marketers are struggling to measure the success of their digital marketing campaigns.
Choosing the Right Metrics to Quantify, Analyze and Improve your Response Rate.
Deriving metrics around user perception, engagement and action can easily define a campaign’s impact on a business.
A detailed marketing plan
Have a detailed plan of the way your campaign intends to find your target customers.
Metrics for your marketing plan
For every channel, examine the metrics that track your consumer from an opportunity to business outcome.
In order to see how effective a channel or tactic has been, develop ratio metrics using the basic structure of ‘Success Signal / Opportunities = Success Ratio’. (For instance, Emails opened / Emails sent = Email open rate).
Calculate the business impact by layering the costs and benefits into the composite success metrics, where the costs come from the media spend.
An Experimental Mindset
Analyze your campaign to answer the basic questions on how effective the campaign has been.
While this holistic approach helps marketers to gain control over multiple channels and data sources, it also needs to layer in the different ways consumers would respond to the various marketing opportunities offered to them in a marketing campaign.
To achieve this, your marketing ads should focus on three distinctive approaches to user response.
Action metrics are straightforward – an action is taken and its results are seen in a business outcome. While vendors try to sell the latest marketing attribution, for many marketers, these models are too complex and costly.
All engagements aren’t equal. Someone might finish watching a one-minute video and leave a comment and another person may just like two of your Facebook posts. Even though both of them performed an equal number of actions, the former has shown more interest in your product or the service you are offering.
Again, not all platforms are equal. Watching a video on autoplay without the sound is just too casual than when a user actually plays a video and watch it to the end.
There is no particular method or widely used tool to compare engagement platforms with events. But, there is a simple guiding principle you can use. Use time as a substitute for interest; people give time to what they are interested in.
Perception metrics measure the positioning of your brand in the minds of your consumers. metrics cover the top of the purchasing funnel and are usually measured via indirect methods like; brand searches, surveys, and social listening.
Marketing models and marketing technologies are constantly changing and that is directly proportional to consumer’s use of multiple media channels and devices. For a digital campaign to be successful given these new developments in technology, marketers need to have a birds-eye view of targeted consumer demography and the only way to do that is by analyzing big data derived from diverse multiple channels, both digital advertising and out of home advertisng, so as to identify the pattern of a consumer purchase.