The effectiveness and profitability of your company is closely tied to the success of your marketing programs. To make these programs as effective as possible, it is necessary to establish a framework of metrics that can be easily identified, quantified and analyzed.
Metrics are statistics, data points and other information that can let you better understand your current market, predict performance and make strategic decisions that will affect your company both short and long term.
Here are some of the more important metrics that you should include in your marketing analytics.
- Revenue metrics: These types of metrics make it clear how your company’s marketing efforts are contributing to income and profits.
- Marketing program performance metrics: These metrics take into account the individual and incremental influence of specific marketing tactics and how they performed. They show response rates and return on investment of particular marketing programs.
- Customer profitability metrics: Customer metrics indicate the value of a customer’s interest and loyalty to your company over a lifetime.
- Web analytics: These analytics assess the performance of your Web-based marketing and reputation building efforts. Useful Web metrics will show you how visible and well known your company is in your target markets when compared to potential markets. Web analytics are also important indicators of how you are performing against individual competitors and within your industry as a whole.
- Public relations metrics: These metrics help you determine the effectiveness of your public relations campaigns and related communications efforts. They can tell you how many people, in what segments, have viewed your public relations material and how well these campaigns have been received.
- Product performance metrics: Product performance quantifies how well your individual products are doing in the market. They’ll reveal total sales, margins, costs, profits per customer, customer retention rates, the cost to acquire and keep a customer, and other important data about your product, its sales and its distribution.
What are the most important metrics and marketing analytics for your particular product, service or industry? Can you add to or refine your metrics to produce data that is more useful, more precise or more indicative of actual performance?
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