I recently posted a question on LinkedIn asking what your biggest digital marketing challenge is? After I read through the answers, which I am very grateful to have received, and thought about them for a very long time, one of the conclusions I came to is that you can gauge the success or failure of your strategy only when you have set measurable goals.
Here are two of the responses that I found quite interesting to share with you. The first one was from Sheila Jacaman, the founder and creator of Divina Natural, a wide range of 100% pure, natural, and organic skincare products.
"Digital marketing has been difficult for us as a new skin care company committed to natural and organic. We have relied completely on third party companies for our web site and marketing strategies. This part has been most challenging and unfruitful. The challenges we face in a very competitive market of skin care is obtaining the search engine optimization needed for successful eCommerce to be developed. Being a small company and preferring to focus on eCommerce is difficult without the back links and search words. eCommerce is a costly venture. "
Sheila Jacaman Divina Natural [fa icon="quote-right"]
The second response was from Raoul Didisheim, a boutique and online store in Madison that features his wife's own curated selection of fine, semi-precious, and costume jewelry.
Raoul Didisheim Mariana Antinori, Inc.
The way to measure success, ROI, or measure the effectiveness of your strategy is by setting measurable goals. Some questions to ask yourself are:
There are two crucial steps that I follow when I work with my clients on setting expectations:
Starting to work on a strategy without setting your S.M.A.R.T goals (SMART stands for Specific, Measurable, Attainable, Realistic, Timely) is like getting into a canoe without paddles.
Nobody wants to do that because you won't move very far. SMART goal setting brings structure and trackability into your goals and objectives. Your goal should be specific, focused, and meaningful.
A goal without a measurable outcome is like a sports competition without a scoreboard or scorekeeper. Your goal should be attainable - not too far or impossible to reach.
Also, your goal should be realistic or relevant to the current realities of the market of your industry. For example, you can’t set a goal to double revenue in a time of recession.
Finally, your goal should be timely, as in have a specific time period for it to be reached. An example of a SMART Goal would be I want to increase our online marketing qualified leads by 50% from 100 leads per month to 150 leads per month by the end of Q3 this year.
Now that you have your Digital Marketing SMART goals in place, the next step is to plan how you will achieve these goals and create the blueprint for doing this. Here are the steps that I follow when I work with my clients:
Without these two steps, Digital Marketing can be very frustrating.
Going a step further, after your Digital Marketing Smart Goals are defined, your planning and blueprints are ready, and your strategy is in place and ready to rumble, it becomes the time to start implementing and crucially tracking results.
The best way to measure results with the 3rd party that you are working with is to agree on key performance indicators (KPI’s). Here are my favorite bunch:
Sales Growth metrics measure the pace at which your companies sales revenue is increasing or decreasing. This is an essential key performance indicator that needs to be monitored by every company as it is an essential aspect of growth projections. Make sure to monitor this metric over several time periods (weekly, monthly, quarterly, etc.…) so you have a clear indication of growth trends, be they positive or negative. Don't forget to have the time periods agreed on with your 3rd party before you start. In addition, sharing your results with your entire sales team is a great way to keep them in the loop with progress.
According to HubSpot, “A marketing qualified lead (MQL) is a lead judged more likely to become a customer compared to other leads based on lead intelligence. MQLs are those people who have raised their hands (say by downloading an eBook or whitepaper, attended a webinar, or browsed more than a handful of pages on your website) and identified themselves as more deeply engaged, sales-ready contacts than your usual leads but who have not yet become fully fledged opportunities”. How many do you have weekly, or monthly, or quarterly?
As defined by HubSpot, the leaders in Inbound Marketing, “A sales qualified lead (SQL) is one that your sales team has accepted as worthy of a direct sales follow up (source). SQLs, on the other hand, have been vetted much further and indicate a prospect that is ready to make a decision.” How many do you have weekly, or monthly, or quarterly?
Reach and engagement is the most important 2 metrics when it comes to social media KPI’s. Vanity metrics, such as page likes, number of followers, post likes, etc., are not as important as calculating the reach and engagement percentages.
An example of this is, say I have a Facebook fan page with 15,000 likes and only 6 people are engaging with the content, versus a Facebook fan page with 2000 likes and 650 people engaging with the content.
Obviously, the latter can generate more leads or drive more traffic to your website. As the famous saying goes, it is not about quantity but more about quality. I like to measure my social media efforts with my clients by focusing on reach and engagement.
What is the percentage of engagement on my social profiles versus the number of people I am reaching? It is this number that is the one to be calculated - not how many likes or followers.
This KPI is as clear as it reads - what percentage of website visitors convert into leads. Do not only look at the amount of traffic you are getting on your site unless one of your Digital Marketing SMART goals is x amount of traffic.
What is more important is how much of this traffic converts into leads. This is so important because it lets you know the quality of your website traffic and conversion rate.
So again, similar to the social media reach and engagement, it is not about how much traffic you have. It is actually about how much of that traffic turns into leads and eventually sales.
When it comes to Search Engine Optimization (SEO), the most important metric to be looking at is your keyword ranking, and not bounce rates, number of visits, pages visited, and time spent on site. Keyword ranking is the position in the search result by searching specific keywords on a search engine.
Research shows that almost half of all search engine users click on a result on the first page, and the higher you rank on that Search Engine Results Page (SERP), the better off you are. There are several tools available on the internet to help you with this.
The most valuable metric to your reporting when it comes to email marketing is the click rate. What is the percentage of emails that were opened, followed by clicked throughs
Open rate alone won't provide you with sufficient information to indicate your progress because some email clients will automatically open an email. However, measuring click rate shows you who engaged with your content.
If you see high click rates, then this means that your content is resonating with your buyer persona and inspiring them to engage.
These are not all the KPI’s that you need to measure as a business owner. However, these are my favorite 7. If you would like to know more about Key Performance Indicators, please do get in touch by leaving a comment below.
I would also love to know what KPI’s you feel are important? Which would you add to this list? Would you please let me know? Enjoy the rest of the day.
Ranya is a serial entrepreneur with over 8 years of experience working on the HubSpot CRM. She loves pushing her sleeves up , and getting s*** done. When she is not running her HubSpot partner agency, you can find her upside down on her yoga mat.
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