In today’s business environment, the proper use of data and analytics to optimize your strategy can catapult your business to the next level. Our president, Megan, has her Master’s Certification in Analytics from Michigan State University and with this expertise, knows how to use the power of AI tools to help companies understand and measure success in a meaningful way.
MegoMedia’s data driven analytics process is unique for each company and dependent on your company’s definition of “success.” When looking to optimize your business outcomes using data driven analytics to drive your marketing approach, your definition of success is crucial to identifying which metrics to focus on in your marketing efforts.
When we’re able to define what “success” means for your business, we can implement appropriate metrics or Key Performance Indicators (KPIs) to form your data driven analytics strategy.
What’s your definition of success?
KPIs are crucial to effective marketing optimization because they help us track where you are, where you want your business to go, and what strategies can be implemented to get you there.
But how do you know which KPI’s are most relevant to your business? Understanding these metrics can help you determine how your business defines success.
Here are some important KPIs that might be helpful to your marketing strategy:
Marketing revenue attribution: How much of your revenue can you attribute to your content marketing efforts?
Why this metric is important:
Simply put, it allows you to understand how effective your marketing efforts have been. If the data collected tells you that your customer is responding to your marketing efforts (by paying money for your goods or services) then you know that you are getting a good return on investment (ROI) for your marketing dollars. Because the idea of marketing is to invest in efforts to reach your customer, hoping they’ll respond by purchasing what you are selling.
Customer acquisition cost: How much do you need to spend to gain a new customer?
Why this metric is important:
Calculating all of the costs associated with your marketing campaigns allows you to directly account for new sales and decide how you want to spend your dollar going forward. You want to spend the most time and effort on activities that improve your customer conversion rates. This KPI helps you determine this.
Customer lifetime value: How much can you make over the lifespan of a customer?
Why this metric is important:
Gaining new business costs money. There is no way around this. So, if you are able to determine the average “lifespan” or amount of time your customer will spend purchasing from you, you can generate more from existing customers. If you determine that retaining customers is important to your bottom line, you might choose to invest in campaigns that nurture those customers.
Lead-to-customer ratio: How many leads do you actually close?
Why this metric is important:
Understanding this metric gives you great insight into what is preventing someone from pulling the trigger and buying from you. This might be a KPI that you want to focus on if you have a sales team involved in your customer procurement. Is your close rate high? If not, why isn’t it?
Landing page conversion rates: Is your sales page persuasive enough to procure sales?
Why this metric is important:
You may think you’ve crafted the perfect landing page on your website, but data can be analyzed to tell you whether it is or not. If it’s not performing up to par, you can decide whether you tweak small things like color, layout and text or change the content altogether.
Need help identifying your KPIs?
These are just a FEW of the KPIs you can measure to determine the direction of your business. Another key component of a successful optimization process is having a marketing team that is skilled in the analytics process so that they can steer you in the right direction.
Once we’ve defined your KPIs, AI tools can be implemented to streamline your marketing approach, making the next steps crystal clear.
Contact MegoMedia today and our team will help you narrow your approach and apply our expertise in analytics and AI tools to create an effective data-driven strategy that will get you the most bang for your marketing buck.
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