I began the week discussing why metrics are important in achieving your strategic goals. There are lots of metrics out there and using the WRONG metrics can lead you to construct marketing strategies that make your goals more elusive rather than helping your reach your goals. Failure to plan for the long run or using strategies that maximize short run goals at the expense of long-term goals are problems with the application of marketing analytics.
The use of marketing analytics in maximizing ROI in social media was also discussed this week. Assessing returns from social network marketing is an important element of planning your social media and is increasingly monopolizing discussions across social networks on the value of marketing analytics.
Many existing metrics to assess the return from your social network marketing strategies have little correlation to actual returns achieved from use of these strategies. We call these vanity metrics.
Examples are Twitter followers, Facebook friends, etc. Instead, firms need to move toward metrics that are reflective of true returns, including sales.
Metrics for your marketing analytics
Metrics such as interaction, social engagement, and conversion. You can also use clickstream data, especially with a proprietary algorithm I’ve developed to track movement of readers through the sales funnel as marketing analtyics tools to maximize their conversion.
Benchmarking allows your to compare your performance with market leaders to identify areas for improvement.
Customer lifetime value is a tool of marketing strategy for identifying customer groups existing within your existing customer base. Once identified, marketing strategies can be developed for each group that maximizes returns for that group by either reducing marketing costs aimed at this group or by increasing sales to the group.
Finally, we had a hugely successful session of “Ask a Marketing Expert” on Friday at http://facebook.com/angela.hausman. [now a Facebook group at Social Media Marketing Tribe]We had a special guest visiting with us, Steve Wiideman who is number 1 on a Google search engine results placement for SEO expert. His site, Top 10 SEO tips, offers free ebooks if you’re interested in learning more about search engine optimization. He’s promised to come back on a future day for a live session of “Ask a Marketing Expert”. Stay tuned for details on the date.
Next week, we’ll continue with more tips and instructions for using marketing analytic tools to improve your marketing strategy. Be sure to comment on your favorite marketing tool or, if you are the developer of a marketing tool, give me the link and I might review it in a future blog post.