Master your marketing – the benefits of testing and measuring
Effective marketing is one of the cornerstones of running and building a successful business, and it’s something that many business owners struggle with.
Without measuring and testing your marketing efforts, it’s likely that you will end up wasting lots of money, without ever seeing the returns your marketing should be delivering.
In this post, we look at the importance of measuring and testing, and how this process is integral to ensure that our marketing efforts become a worthwhile investment, rather than an expense.
What is effective marketing?
Whilst you’ve probably heard a lot of different definitions and opinions on what makes an ‘effective’ or ‘good’ marketing campaign, in reality, there is only thing that matters – the numbers.
Effective marketing comes down to simple mathematics – if a marketing method is bringing in more to your business in terms of sales than it is costing, then it is effective!
However, how will you know if it has been effective if you aren’t measuring and testing it?
(For more on this topic, take a look at our previous post on changing your marketing mentality – link to post once live, which discuss.)
You can’t manage what you can’t measure, and it’s impossible to tell whether your marketing efforts are effective without measuring and analysing the results.
In practice, this means that whenever you invest in any type of marketing, whether it’s advertising, SEO, direct marketing, online marketing or PR, it’s absolutely vital that you know how many customers, and how much business it has generated.
As soon as you know how each element of your marketing matrix is performing, then you can start to optimise it, changing out elements that aren’t working for those that are.
How much can you measure?
When it comes to measuring the effectiveness of your marketing, you’re looking to try and get information on the following:
• Cost of the marketing
• Number of leads generated
• Percentage of customers converted
• Average sale per customer
• Average profit per customer
• Lifetime value of each customer
• Referrals generated by each customer
Whilst it isn’t always practical or possible to know the exact numbers in all these categories, the more information you can get, the easier it is to see how effective your marketing efforts are.
There are a huge number of different ways to measure marketing campaigns. At its simplest, this includes things like making sure you ask every new customer how they found out about your business, and what they have bought, but it shouldn’t stop there.
Remember, if it’s digital, it’s measurable, and SEO campaigns, online advertising, social media and e-marketing are all incredibly easy to measure, so get clued up and make sure you collect and analyse all the data they generate.
PR and adverts can be harder to measure, but simple things like setting up dedicated phone numbers or email addresses that correspond with individual campaigns can help to ensure you’re collecting all the data you need.
Measuring your marketing efforts isn’t enough – it’s also vital that you test them, and compare them.
For instance, rather than running a single advert, you might consider experimenting with several ads of the same size and cost, each with different headlines, offers and visuals. By collecting and measuring data on each advert’s effectiveness, you’ll be able to determine which to focus on.
Testing your marketing efforts against each other will help you to optimise your marketing spend, reducing waste, and helping you to generate better returns on your investment.
The same is true for all your marketing efforts, from e-marketing and web pages, right through to direct marketing and adverts, and the more you test, the better your marketing will perform over the long term.
How Coach Pam can help
For assistance in testing and measuring, optimising your marketing efforts, or support with any aspect of running a business, call Coach Pam today on today on 07540 888016 for a free, no obligation 90 minute introductory coaching session.