Entrepreneurs running businesses have to wear many hats. They face competing demands and also manage the necessary operations. In such a situation, it is imperative to put in place optimal strategies for each functional area that encourage business growth and profitability. One of the major key areas is the marketing function as it helps to generate revenue from customers and keep the business afloat. Over the past few years, we have seen the line between marketing and sales blurring. The future of marketing technology will help marketers drive business growth in the organization.
Modern marketing has recently created a lot of turmoil in the market. I would define it as an ability to use all of a company’s capabilities to provide the best experience for your customer, thereby driving growth.
We could see digital marketing focusing more on the experience it can deliver to recipients, especially with businesses moving online and reducing face-to-face contact with consumers. For many large organizations, it is not feasible for marketers to work on personalization,
scale, without the use of technology.
Using marketing technology will help them better understand audiences, gather data, plan content and communication delivery, and gather response data. Improving the accuracy and efficiency of these technologies
will help automate non-essential functions of marketing efforts, freeing up time for marketers to focus on planning creative strategies that best align with their organizational goals. The right way to measure and calculate the success of these martech efforts is to strategically
define key performance indicators for each marketing exercise.
Entrepreneurs typically fail to define actionable Key Performance Indicators (KPIs) that directly affect the success of their business and get swayed by attractive, but misleading numbers. Smart marketers value metrics that help drive results rather than fickle numbers that only contribute to flashy reports.
Therefore, KPIs are used by digital marketers and entrepreneurs to measure their marketing campaigns. These numbers not only help determine targets and objectives, but also measure performance. For example, when tracking SEO results through impressions received, a primary metric to measure the success of an activity would be the revenue generated.
Alternatively, any data that is not directly correlated to business growth and profitability is inane. Numbers like these look good on paper, but don’t contribute to the end goals of a marketing campaign. Appropriately called “vanity indicators”, they add sparkle to your reports, but
are not reliable enough to modify marketing strategies or make essential business decisions. A spike in website traffic is a big number to show, but its effectiveness can only be measured by calculating the number of visitors converted into paying customers or at least interaction.
with branded content.
The only parameters entrepreneurs should invest in are those that help them grow their business. Here are some benefits of assessing marketing KPIs for your business:
– Online Marketing ROI – Accurately calculating an ROI helps marketers understand which of their efforts are generating the most leads. Using this data, marketers can adjust their strategies to complement the most effective methods of attracting customers.
– Cost per lead – The performance indicator helps to understand the cost associated with generating new leads. It is calculated separately for each marketing campaign and expresses their profitability by assigning a value to each lead generated. An ideal CPL would be a low amount associated with a large number of leads.
– Customer Acquisition Cost – Customer Acquisition Cost helps marketers and sales teams understand how valuable the customer acquisition process is. This tests the quality of your leads and lead generation campaigns, and is used by investors to calculate sound investments.
– Marketing Qualified Leads (MQL) – Based on data points collected by various martech tools, like number of website visits or content engagement rates, a lead can be classified as MQL. This would mean that he is more likely to become a customer than other prospects due to their positive engagement with the company’s brand. This engagement includes adding items to a cart or downloading a mobile app, etc. It also helps create a streamlined process between marketing and sales teams. Once an MQL is defined, the sales team can then target them for one-on-one interaction with the goal of building a relationship or closing the prospect completely.
– Conversion Rate – Conversion rates are calculated by measuring the percentage of visitors who follow a desired call to action. These actions can range from filling out a feedback form to purchasing a specific product. This KPI helps a business understand how successful it is in attracting leads through its advertising campaigns or website traffic.
Providing personalized and relevant content will be a key factor in attracting and retaining customers. To achieve this level of growth, tomorrow’s marketers must identify and interpret the right KPIs for their business. However, the use of technology and data may
help agencies better decide on their strategy and develop their content. Numbers never lie, but our interpretations do, and can make or break our marketing goals.
(The author is Founder and CEO from U.S ! Interactive, a Singapore-based digital marketing agency and the opinions expressed in the article are its own)