Marketing Metrics: Know What You Should Track
Marketing metrics are the backbone of your goals.
By now, you probably have created your yearly business plan and goals (at least I hope you have).
You’ve made checklists, written out goals, and even have a schedule of how it’s all going to go down this year.
So here’s where you start executing your new ideas and plan; you check off your list, you put in the work; you do everything you’re supposed to do.
Annnnd if fails miserably. The worst part might by that you have no idea where you went off course.
We’ve all been there. We have a great idea that we think is going to be the best thing since sliced bread and we can’t figure out why it didn’t sell. You did everything you were supposed to - everything the experts told you to do. You did everything right.
Here’s the thing about goals: you can’t control the circumstances.
But, using marketing metrics can help. When you set a goal and start to go for it by creating a plan, action steps, and deadlines, all you’re doing is making predictions.
We all want to be able to see into the future, but there is no way you’ll be able to see the roadblocks that will come your way.
Kids gets sick...
Web designer bailed...
Work gets super busy…
Cash flow shortage...
Client work demands attention...
(There’s also the emotional side of this: not knowing where to start, fear of failure, too many ideas, imposter syndrome.)
I want to help you take your yearly planning a step further and start thinking like a CEO...like a founder, to develop ways you can see the future roadblocks and be prepared for them.
It isn’t a crystal ball, but it’s as close as you’ll get.
In order to better predict which of your ideas will be a success, you must create an internal feedback loops.
An internal feedback loop your crystal ball and is made up of your marketing metrics. It’s a way for you to build-measure-learn-adjust and try again with better information as you go through the process of achieving your goals. You must create a system to measure–it’s not enough to simply create a goal list and a plan.
Creating a system for your marketing metrics is a way to diligently track what’s working and what isn’t. Instead of passively saying, “no one is signing up for my emails”, or “I don’t feel like I’m making money on this”, you need to take the emotion out of it and track it for real.
Using a system to track your profit, sales goals, growth, and progress toward your goals is the way you can make a more informed approach (vs. an emotional one). With the black and white information in front of you, you’ll be able to make solid decisions that don’t include the beat-yourself-up, woe is me side of choosing what to do next.
Well-defined goals are backed by research, measurement, and deadlines, which are your objectives. You need to know things like by how much and by when in order to be able to measure your success. If you just say, “I want to increase my sales,” you won’t know your current benchmark or when to push yourself to strive and hit your goal.
When my coaching clients come to me, they know they need to be measuring outcomes. Most keep an eye on their Instagram followers count and email list size. One of the things they’re missing is a system to keep them tracking regularly and consistently and making sure they’re measuring the right things.
If you’re measuring your email subscriber count, but don’t have a goal associated with it, what’s the point of measuring it? Measuring is the crystal ball that tells you if you’re on track or not.
Internal Feedback Loops = Measurement = Crystal Ball
If you have built your goals well, they will tell you what to measure in your internal feedback loops.
Here’s an example of an example of how well-written goals will tell you what to measure in your marketing metrics:
Sally has an online shop and her business has a gross revenue goal of $350,000. Because she’s done her research, she knows her online shop has an average cart checkout total of about $30 from last year.
She usually has about 175,000 pageviews per year. She also knows that, based on last year, her page views to purchase conversion rate is about 4%. So, her marketing goals may look like this:
- Increase email list from 6,000 to 7,000 subscribers by using a 10% off coupon pop up on our shop site for new email sign ups by the end of the second quarter.
- Generate 200,000 shop site visits, convert 5% to purchase at least $35 check out amount to generate $350,000 in gross revenue by the end of the year.
Sally also now has some very specific things she knows she needs to measure to keep track of so she’s on pace to hit her goal. She needs to make sure she is measuring her:
- email list growth,
- shop site visits,
- visits to conversion rate,
- average cart total at checkout, and
- gross revenue.
Creating a system to track these things will give you the internal feedback loop you need to understand where you need to pivot and when things are or aren’t working, and to make decisions based on concrete evidence instead of emotion.
How this will trickle down to your marketing efforts will greatly affect how you plan your year, too.
Part of Sally’s marketing strategies should be to drive people to her shop site through her media channels. Every marketing effort should be driving people to her shop, she should probably have an email auto-responder for cart abandonment to increase purchases, and add some complementary items to product listing pages to increase her cart checkout totals.
In our next post, we’ll talk more about how you can connect your goals to your revenue, and your revenue to your marketing activity. We’ll dive into how to track and measure all the ways you market or advertise your business which will give you insight into knowing if you’re on track or if you need to shift.