You should already know that the marketing plan works as a guide to achieve goals and contribute to the growth of a business, since when well structured, it directs and guides managers and employees to understand the time to change, according to the movement of the Marketplace.
But the marketing plan can’t just be a document forgotten in the drawer. It is necessary to put it into practice in the day-to-day of the team. And more than that: you have to monitor it. Because, even if it is excellent planning, unforeseen events happen, and monitoring metrics are essential to follow up, verifying actions and their performance. In this article, we help you learn what not to lose sight of in your marketing plan.
Keep in mind that for your plan to be successful, it is essential to monitor the progress of your marketing efforts on an ongoing basis. The intention is to allow you to control the efficiency of the strategies adopted, identifying if the planning is attracting the public and if the investment is working.
But before we talk about performance indicators, the set of measures you should use to evaluate the performance of your marketing plan, it is essential to understand the difference between metrics and KPI.
Although the terms refer to mathematical and statistical indicators used to analyze the performance of marketing campaigns, they do not evaluate them in the same way.
The metric analyzes user behavior on the corporation’s websites or social networks. At the same time, the KPI (Key Performance Indicator) evaluates the results mathematically, according to the objective defined by the company’s managers.
Now, check with us the importance of performance indicators and how to calculate them:
metrics Vanity metrics are the primary performance indicators of social networks. In short, it’s the number of clicks, shares, and bounce rates received. However, they are not considered a KPI, as a metric alone does not influence decision-making. The motivation for a like can come from the text, the image, or even an unintentional click.
This is one of the most relevant KPIs to measure the return on investment in digital marketing campaigns. Its calculation is simple: just select a
period and consult the amount invested and the revenue generated, subtracting the capital gain and dividing this amount by the capital again. The ROI value will reveal how much the company made for every dollar invested.
Customer Acquisition Cost is another critical KPI. It is the indicator that reveals how much it costs to win a customer. Consequently, it measures the efficiency of the marketing department, as it assesses whether the campaigns are bringing any return. The formula to calculate it is simple: divide the total amount invested in a digital marketing campaign by the number of customers conquered.
The LTV (Lifetime Value of the Customer) measures precisely how much a specific customer is worth to the company during the relationship with the company. In other words, it is the tool that considers the value the customer acquires in products and services and how many times he returns to buy. This calculation is essential to determine if there was a profit on the money invested in winning this consumer.
There are two formulas to determine this number:
– Multiply the gross profit margin by the sum of all purchases that a person has made in your company;
– Multiply the monthly average of transactions by the average purchase ticket. This value must be multiplied by the gross profit margin and the average buyer lifetime in months.
5. Conversion Rates
The conversion rate measures the results of the digital marketing strategy through customer actions on your website, such as signing up for the newsletter. Using this information to calculate it, divide the number of orders placed by the number of visits to your website and multiply this result by 100. This total will indicate the percentage of customers who purchase after visiting your online space.
Is the paramount importance of tracking metrics and KPIs clear? With this activity, it is possible to evaluate the success of the implemented marketing strategies.
We also emphasize that KPIs and metrics must be used together to correctly interpret your data, thus enabling access to secure results on planning.
Using metrics and KPIs to monitor the progress of marketing actions continuously, you can identify bottlenecks, observe new opportunities, make improvements to the strategies outlined and make more proactive decisions.
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