As I’ve previously confessed, I’m not much of a numbers person. I excelled in math classes throughout my school years, but once I decided on a creative career path and formally acknowledged that I’m a word nerd, my math brain shut down. I struggle even to balance our personal budget.
This blissful ignorance – eschewing numbers – was mostly fine when I was in a purely writing and editing role. But once I switched over to marketing, I realized I was in for a problem. In business, math isn’t going anywhere. In fact, tracking metrics (the right ones) and determining hits and misses is a critical part of a marketer’s role.
If you’re in a similar position, welcome to the club. In today’s post I want to offer a primer of the key lessons I’ve learned – things that a marketer needs to keep in mind when measuring for success.
There’s an alphabet soup of acronyms that you may encounter when talking about marketing metrics. If you’re already familiar with these, feel free to skip ahead.
“Return on Investment” (ROI) is a favorite in the business world. It basically answers the question: “Is the effort or cost of doing this thing yielding a positive return to our business?” It’s a powerful stat that can help justify – or kill – the project that you’re working on.
“Key performance indicators” (KPIs) are benchmarks of the main operations of your company. KPIs are useful in helping you get a pulse on how your business is performing. The numbers and calculations – what you’re striving for – may evolve, but the KPIs are likely to stay standard year in and year out. I can’t tell you exactly what your business’s KPIs are, but I encourage you to spend some time thinking about them and ensuring you’re tracking the right things.
“Comps” help you see how your efforts performed this time around as compared with a previous period. For example, you may compare month over month (“MoM”) or year over year (“YoY”).
When tracking digital efforts like web pages or email blasts, you’ll run into another set of terminology. There are “impressions” (how many times your page or ad displayed) and “clicks” (how many times the reader took the action to click a page – to view another page, for example). “Open rate” and “click-through rate” (CTR) are also key terms. Another “c” term, “conversions,” may be the ultimate metric: It helps you know how many people took the desired action – for example, purchased your product.
“Customer Lifetime Value,” or CLV, is a newer metric, which started to be tracked more recently by marketers and brand loyalty experts. CLV is not easy to hard-stamp. It’s less scientific and more about how long your current or new customers will stick around.
Bottom line: There’s a lot you could track – but that doesn’t mean you should track every single thing, as I’ll explain momentarily.
Who within a marketing org should look at metrics?
Hint: The answer is broader than you think. From content writers and producers to artists and analysts, everyone should have a look at the data – at least occasionally – to ensure things are on track.
At one of my recent jobs, everyone in the company, from HR to tech, went through analytics training. Granted, not everyone needed the same level of training. The people who were on the front lines calculating the website’s performance and tracking success, for example, needed more robust knowledge. But everyone needed to have at least a working understanding of what numbers we were following and the performance diagnostic they reflected for the business.
There are many kinds of metrics that you might want to watch, from views to open rates to conversions. First piece of advice, especially as you’re starting out: Keep it simple. Try to track a few things only so you can start to get a feel for your business and benchmarks.
Let me lob a couple questions back at you. At the end of the day, what do you really want to know? What are you really trying to test?
If you don’t have clear answers to these, get them. You may need more directives from your boss or to hash out what your main goals are. It’s important to ask these questions up front, before you start the work, to ensure everyone has the same expectations of what to achieve, what to measure, and, most importantly, what to tag a “success.”
As you’re determining answers to the above questions, it’s important to consider the context, too. For example, if you’ve just launched a product and created a new website or campaign, you probably want to track traffic. This helps you simply know how many people saw your Wonderful New Thing. These are called “awareness” metrics.
On the flip side, if you’re a decade in to an ongoing campaign, your measurement needs have matured far beyond awareness and traffic. I’m not saying you should stop tracking those – on the contrary, it’s always wise to keep an eye on standard KPIs and data. But you can dig for deeper meaning with metrics that track something called “engagement.” This may mean things like how much time people spend on a page or how many comments or likes your social media post gets. Engagement is a wide-swath term that helps characterize actions that show people are interested in your content.
Another thing you might look at is return visitor rates – as in how many of those people who come to your site keep coming back? (As an aside, if you’ve been running the same campaign for 10 years and it hasn’t gone stale, I’d love to hear from you. Share your secrets!)
And how does your boss measure success? If these answers are different – and they’re likely to be – you may encounter a problem even before you hand off numbers and reports. What you think is stellar may be abysmal to the boss. Again: Be sure to set expectations up front.
A quick note on industry standards: It’s good practice to know what they are for each key measurement. Industry norms help you gut-check how you’re doing. I hesitate to put specific numbers in this post because industry standards evolve and vary wildly by industry, but you can always do an internet search to see what is current. What I find more helpful, especially at the start, is to first establish the typical rate for your business. Benchmark and measure against that at the start; worry about the other guys later.
Now let’s talk tactics. When you first set out to track your metrics, you may be overwhelmed with the sheer volume of all those numbers. Where to put them?
Spreadsheets are a great place to store your raw data. I like to set up simple tables to capture it. For example, if I need to track web traffic week over week, I create a quick table that tracks date and frequency. It looks something like this: