Insights & Variability
It can be easy for a small business to find itself so deeply in the trenches of operational management that the idea of marketing falls within the theoretical category. The notion of marketing analytics well, that may as well be the stuff of fairy princesses and far away kingdoms.
Understanding your audience, knowing the channels in which they prefer to receive information (email, social media, podcasts, mail, etc) and identifying the messages that best resonate with them, that’s marketing.
Marketing analysis lets you know if what you are doing is working, helps you to modify your tactics and identify new markets. Like most things, you need to start at the beginning:
1. Identify your Key Performance Indicators (KPIs), or in other words, your goals. For example: conversion, marketing opt-ins, brand awareness, site visits, referrals, etc.
2. Determine your Return on Investment (ROI). Another way to think of ROI is: For every dollar you spend on marketing, how many sales are you driving, or what benefit are you realizing?
3. Assign a value to your KPIs. This is where variability comes to play. Some KPIs may be more valuable to you than others. For instance, conversion/sales may be worth double marketing opt-ins. Review all your KPIs and assign a weighted value totaling 100%. Note: different tactics may have different KPIs.
4. Using the weighted KPI scorecard, calculate your ROI that tactic.
5. Review your findings with an open mind. It is important to be honest about which tactics generated results, which exceeded your expectations, and which failed miserably.
While marketing analysis may seem like an item for the “when and if I get the chance" list, it really should become one of your top priorities. Marketing is often a practice of trial and error. To be successful you must be willing to take risks, try new things and know when to let go.