Measuring the effectiveness of a marketing campaign is crucial for any business model. However, it’s easier said than done, as you may be confused about what to start analysing, given today’s dynamic marketing environment.
Traditionally businesses that advertised on billboards dominated sales, but with the growing internet, things have shifted to online advertisements. Consequently, this shift has made sales and marketing analysis somewhat daunting for businesses embracing technology.
But there’s no need to worry if you have embraced technology in your business. This article discusses how you can analyse your marketing from 2022 and improve it for 2023. We’ve also discussed the future of marketing performance to keep your brand top of the competition in 2023. But first, what is market analysis?
What is market analysis?
Market analysis is the act of gauging how your marketing campaign has performed over time. The 5 advantages of market analysis include the following:
- You’ll get a deeper understanding of your customer base, including their age, location, shifting demands, spending habits, and gender. This helps you develop a personalised marketing campaign aimed at converting and winning over new leads.
- Frequent market analysis helps you see which campaigns delivered their objectives and which didn’t.
- You can base your future marketing campaigns on the market analysis you’ve conducted, thus helping you fulfil your objectives.
- A proper market analysis exposes your competitor’s weak points, giving you an upper hand in dominating the market share.
- Market analysis helps you gauge a new product’s potential uptake, therefore, minimising business risk.
Analysing your marketing performance is crucial for the long-term sustainability of your business. So, how can you analyse marketing performance?
How to analyse your marketing performance
To understand how you can analyse marketing performance, you must know the objectives you wish to achieve with each marketing campaign. These objectives vary depending on your business and client needs. They can be lifetime or time-sensitive initiatives.
Here are five objectives of market campaigns;
- Increase conversion rates
- Create brand awareness
- Grow your revenue
- Improve your customer retention
- Improve your website traffic
Now, we can look at how you’ll keep track of marketing performance based on these objectives.
Increase conversion rates
Conversion rate is the percentage at which leads complete your desired action successfully. It can be signing up for a free trial or newsletter, downloading a guide, or other CTAs.
An average conversion rate is between 5% to 15%, and improving it is a significant plus for your business. High conversion rates are crucial since you’ll be gaining first-party customer data. This gives you the edge of doubling your revenue income in 12 months. Such data include your customers;
- Email address
- Phone number
You can use this data to get the new client as a lead. However, when analysing lead conversion performance, it’s best to consider the lead value of the campaign by dividing the total sales by the number of leads.
You can track the performance of your marketing campaign by checking the following;
- The cost per conversion– is the amount used in acquiring a client.
- Open rates for email marketing– the rate at which subscribers open your campaign.
- Customers bounce rate– a percentage of visitors leaving your site without taking action.
You can use the enhanced conversion feature by Google to get a more detailed performance of the campaigns’;
- Enhanced conversions for web
- Enhanced conversions for leads
Creating brand awareness
Brand awareness refers to the popularity of your brand within its target audience. A target audience is the people who intend to use your brand.
You can influence your brand’s reach by creating content such as articles, e-books, videos, or podcasts that promote your brand. Another effective way of creating brand awareness is using influencers and trends, such as creating memes of your brand.
Tracking the performance of raising brand awareness is done by;
- Tracking direct traffic using Google Analytics.
- The number of brand mentions online.
- Using Google alerts to count online brand mentions.
- Conducting social listening.
Grow your revenue
An essential role of tracking marketing performance is analysing the revenue a campaign has generated. As such, the amount of revenue generated by a campaign is the key performance indicator for that particular campaign.
What you might consider in analysing the performance is the following;
- The gross profit is the balance after deducting all the business’s overhead costs.
- Year-to-date sales– the total amount made since the beginning of the year.
Google Analytics is excellent for tracking your sales and revenue.
Improve your customer retention
With the cost of acquiring a new customer being five times higher than retaining one, it’s crucial to maintain your customers on retainer. Some of the ways you can keep a high customer retention rate include the following;
- Constantly staying in touch with them.
- Maintaining professional communications even in their inboxes.
- Providing high-quality content.
- Informing them of events or offers.
On the other hand, you can track this metric by checking the following;
- The churn rate– the percentage of customers abandoning your business after a specific period.
- The number of customer referrals you’re getting.
- A customer’s repurchase ratio- considering the number of times they’ve repurchased a product.
- A client’s upselling ratio- by exploring the different products they’ve purchased.
- The customer engagement statistics by how they interact and promote your posts.
Improve your website traffic
Organic search increases site traffic by 53%, positively impacting your revenue by at least 40%. Therefore, it’s understandable why marketers want to improve their site traffic.
To improve your web traffic, adopt the following;
- Optimise your keywords so your site ranks on top of your competitors when looked up on search engines.
- Improve your user experience by making your webpage accessible across all devices
- Have several landing pages to capture new leads depending on their search request.
You can measure the performance of your marketing campaign by applying the following methods;
- Use an SEO tool to rank the visibility of your site
- Checking the number of pages a particular visitor views when they visit your page
- Calculating the average time visitors spend on your page during a session.
- Check the number of unique visitors on your site and the time they spend.
- Monitor your channels since they provide traffic sources.
By analysing the performance of your 2022 marketing campaigns, you’ll gain insights into the areas you must improve on to generate more revenue going into 2023. As a bonus, consider implementing the following insights into the future of marketing performance.
The future of marketing performance
As technology advances, so do strategies for analysing your marketing performance. Here are 4 areas you can include in your marketing campaign in 2023 to increase revenue.
with recent economic challenges set to progress into 2023, consumers are more aligned to support brands tackling socioeconomic difficulties. Think of cat food brand Sheba with its restore our coral reef program.
consumers are more online than ever, and businesses that provide data protection have benefitted and will continue to benefit from this. By upholding your client’s privacy, you gain more trust and influence their spending ability on your products.
with a growing online population of Gen Z, you’ll want to be relevant by upgrading your visual search experience by incorporating more photos and videos.
Rise Of Influencer Marketing
Influencers are on the rise as small businesses seek to use them to promote products. All you’re required to check is if they have a huge following, how interactive their followers are, their followers’ relevancy to your business, and the influencer’s authenticity.
Analysing your marketing campaign’s performance shouldn’t be a tough shell to crack. By setting out your objectives, you’re a step away from gauging your performance, and by following these 5 steps of analysing marketing performance, you can finally plan for your 2023 marketing campaigns. To learn more about optimising your marketing get in contact with us, and let’s discuss how we can get you winning quickly.