Measurement is an often overlooked and undervalued part of marketing, yet the ability to measure the impact of our efforts is paramount. With marketing, we’re often inundated with data from various sources, ranging from website analytics to social media engagement metrics. However, amidst this deluge of information, it’s crucial to differentiate between long-term brand metrics and short-term performance metrics, and to adopt a measurement approach that aligns with our business goals.
UNDERSTANDING BRAND METRICS VS PERFORMANCE METRICS
Before delving into measurement approaches, let’s clarify the distinction between brand metrics and performance metrics.
Brand Metrics:
Brand metrics measure brand health, perception, and equity. These metrics provide insights into how consumers perceive and interact with our brand. Examples include brand awareness, brand sentiment, brand loyalty, and brand recall. Brand metrics are essential for assessing the overall health and reputation of our brand in the market.
Performance Metrics:
On the other hand, performance metrics focus on quantifiable outcomes related to different marketing activities. These metrics help us understand the effectiveness of our campaigns and initiatives in driving specific actions or behaviors. Examples include website traffic, conversion rates, lead generation, sales revenue, and return on investment (ROI). Performance metrics help us evaluate the tangible impact of our marketing efforts on business outcomes.
ALIGNING MEASUREMENT WITH BUSINESS GOALS
To discover meaningful insights, it’s crucial to align our metrics with our business goals. Rather than fixating on “vanity metrics”—superficial indicators that may look impressive but don’t directly tie to business objectives—we should prioritize metrics that directly contribute to achieving our overarching goals.
It’s also important to point out that some metrics have more value than others. Usually, metrics that get closer to our business goals or directly measure revenue generation and ROI are most important, but getting to those metrics can be difficult depending on the tools and resources available to us. We’ll talk through an approach to identifying valuable metrics in the below sections.
5 TIPS TO IDENTIFY KEY MARKETING METRICS
Here’s a strategic approach to identifying the key metrics that matter for our marketing efforts:
- Start with Business Goals: We start by clearly defining our business objectives. Whether it’s increasing brand awareness, driving lead generation, or boosting sales revenue, we need to articulate specific, measurable goals that align with broader business objectives.
- Map Metrics to Goals: Once we’ve established our goals, we identify the metrics that directly measure progress towards those goals. For example, if our goal is to increase website traffic, relevant metrics may include website visits, page views, and unique visitors. If our goal is to enhance brand perception, metrics such as brand sentiment and Net Promoter Score (NPS) would be more pertinent.
- Prioritize Impactful Metrics: We should ensure we focus on metrics that have a direct impact on driving business outcomes. While metrics like social media likes and followers may provide some indication of brand engagement, they may not necessarily correlate with tangible business results. Instead, prioritize metrics like conversion rates, customer acquisition cost (CAC), and customer lifetime value (CLV) that directly contribute to revenue generation and profitability.
- Consider the Customer Journey: We need to take into account the entire customer journey when selecting metrics. Different metrics may be relevant at different stages of the funnel. For instance, metrics like click-through rate (CTR) and email open rates are more relevant for measuring engagement in the awareness and consideration stages, while metrics like conversion rate and sales revenue are critical indicators of success in the conversion and retention stages.
- Use Data Analytics Tools: We should leverage data analytics tools and platforms to collect, analyze, and interpret relevant metrics effectively. Whether it’s Google Analytics for website performance, social media analytics tools for tracking engagement, or marketing automation platforms for monitoring campaign effectiveness, we have to invest in and use the right tools to facilitate data-driven decision-making.
COMMONLY USED METRICS
There are a lot of metrics available to us, especially in the world of digital advertising. However, not all metrics are created equal and not all of them will be relevant to our goals. Below is a list of some commonly used metrics across both Brand and Performance based campaigns.
| Brand Metrics | Performance Metrics |
| Brand Awareness Brand Sentiment Brand Loyalty Brand Recall Net Promoter Score (NPS) | Website Traffic Conversion Rate Click-Through Rate (CTR) Cost per Acquisition (CPA) Customer Lifetime Value (CLV) Return on Investment (ROI) |
MEASUREMENT TOOLS
Like metrics, there is a wealth of measurement tools available to brands and marketers. Some are free tools, and others cost money. We always recommend doing your research and seeing which tool will be the right fit for your business and budget. Below is a non-exhaustive list of some commonly used measurement tools.
- Google Analytics: Track and analyze website performance
- Social Media Analytics Tools (e.g., Facebook Insights, Twitter Analytics, LinkedIn Analytics): Monitor social media engagement
- Marketing Automation Platforms (e.g., HubSpot, Marketo, and Mailchimp): Track campaign performance and lead generation
- Customer Relationship Management (CRM) Systems (e.g., Salesforce, Zoho CRM, and HubSpot CRM): Manage customer data and track sales metrics
TECHNIQUES FOR UNDERSTANDING MARKETING PERFORMANCE
While metrics can tell us a story about what’s going on with our business or our campaign performance, sometimes we need additional tools and techniques to grasp the full depth and breadth of our efforts.
Again, this is not an exhaustive list, and not all of these will apply to all businesses or goals. We advise using these techniques directionally to help get started in the world of measurement.
- A/B Testing: Experiment with different variations (of marketing campaigns, creative, audience definitions and targeting, etc.) to determine which strategies yield the best results.
- Attribution Modeling: Analyze the customer journey to understand the impact of each touchpoint on conversion and revenue generation.
- Customer Surveys and Feedback: Gather insights directly from customers to understand their preferences, needs, and pain points.
- Competitive Analysis: Monitor and benchmark against competitors to identify areas for improvement and differentiation.
- Regular Reporting and Analysis: Establish a cadence for reviewing and analyzing marketing performance data to identify trends, patterns, and opportunities for optimization. While some companies like to look at short-term performance only (which helps for optimization), we recommend looking for long-term performance, too, to identify trends like seasonality.
TAKE ACTION
Measurement is not just about tracking numbers—it’s about extracting actionable insights that drive strategic decision-making. By distinguishing between brand metrics and performance metrics, aligning measurement with business goals, and prioritizing impactful metrics over vanity metrics, we can gain a deeper understanding of our marketing efforts’ effectiveness and optimize our strategies for maximum impact.
Remember to:
- Focus on metrics that directly contribute to achieving our business objectives.
- Prioritize metrics that have a tangible impact on revenue generation and profitability.
- Consider the entire customer journey when selecting metrics.
- Leverage data analytics tools to collect and analyze relevant metrics effectively.
By adopting a strategic approach to measurement, marketers can unlock valuable insights, drive business growth, and stay ahead in today’s competitive marketplace.
LOOKING FOR HELP?
Reach out if you want to talk to one of our experts in marketing measurement to find out how we can help evaluate current measurement strategies, suggest improvements, and more. Learn more about the different marketing solutions we offer and contact us to discuss your needs.
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