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Track Marketing Performance – Measure Your Marketing Part II

Now for Part II of our guest post about How to Measure Your MarketingTrack Marketing Performance

In the previous post we reviewed what to measure through the steps of your marketing and selling. It’s natural, right? If you want to achieve a certain amount in sales, you must have a sufficient number of leads and opportunities flowing into your selling process to make those sales possible. In this post, we show you how to track marketing performance.

Many small business owners we work with feel stumped because they haven’t measured, or even thought about measuring, more than just two points in the process: leads and sales.

If yours is one of those companies that has been tracking marketing performance at multiple points in the funnel, great. This post may give you some new ideas or help you simplify the process so it’s less time-consuming. If you haven’t broken things down to 3 or more phases, then there is no better time to get started. Next quarter and next year you’ll be glad you did. A more detailed history of marketing and sales performance will help you better predict results, and therefore manage your business more effectively.

Measuring “Reach”

Generally, businesses should review the broadest metrics of their marketing on a weekly or monthly basis. Not only is it important to build up trends that can be seen over time, but it helps identify problems that might otherwise go undetected. For example, when would you like to learn that traffic to your website has dropped by 80% — after noticing the trend for a few weeks, or 6 months later when your sales have plummeted and you are desperate to figure out the cause?

Plus, measuring elements of reach on a regular basis allows you to figure out what campaigns and programs are expanding your business’s visibility.

Measuring “Engagement”

Small business owners should look at engagement metrics periodically too, but may also choose to review them even more frequently on a campaign-by-campaign basis. The number of email opens or click-throughs, the number of calls that a print advertisement or mailing campaign generated, the number of downloads of an ebook, etc. – these metrics help you figure out what messages are working well, and which ones aren’t.

Measuring “Follow Up”

Here is where marketing meets sales – the contacts who indicate they have an interest in your company’s product or service. Keep in mind that not all the people who click on an email link, attend a webinar, or request a copy of an ebook have a current need for what you offer. Your marketing process should ensure that everyone receives follow up, but you may decide to track marketing performance for only certain types of follow up actions. For example, webinar attendees should be contacted to ensure that they got value from the session or receive a promised transcript or worksheet, but you may want to only measure the subset of attendees who request a consultation as a part of your “follow up” metrics.

Additional measures in this category will include the number of proposals created, the overall dollar value of opportunities in progress, and other measures that are useful in monitoring your near-term revenue potential.

A “snapshot” of these metrics on a monthly basis will help you figure out any problems, but will require interpretation. For example, is a growing pipeline value an indication of a useful growth in opportunities, or a stalling point in your sales process? For many organizations, these measures will guide the discussion of a weekly sales meeting.

Measuring “Sales”

Definitely worth celebrating! In addition to monthly accounting reports, the sales accomplished (number of them, total revenue, profit value, or other measures that matter to your particular business) may be reviewed on a weekly basis – especially if you have a results-driven sales team!

We’ve included a link to a spreadsheet to help you track marketing performance. Customize it to your situation, focus your business around the most important measures, and watch your results improve!

Andy McClure Sherpa Business DevelopmentAndy McClure is the Founder of Sherpa Business Development. He works with Bay Area businesses that have between 5 and 50 employees to help them get more customers and generate higher profits from the ones they have.