Marketing Metrics That Matter

T
Pardot               Marketing Metrics That Matter                                                            Page 1




                                                     A Pardot White Paper

                                                     MARKETING METRICS
                                                     THAT MATTER
                                                     Introduction

                                                     Chapter 1
                                                     Email Marketing Renaissance

                                                     Chapter 2
                                                     Social Media State of Affairs

                                                     Chapter 3
                                                     Paid Search Landscape

                                                     Chapter 4
                                                     (Re)emergence of Display

                                                     Guide to Metrics that Matter

                                                     Conclusion




                                                                                                                     TM




www.pardot.com   /    404.492.6845    /   ©2012 Pardot, LLC   /   All rights reserved worldwide
                                                                                                  marketing automation
Pardot                Marketing Metrics That Matter                                                                      Page 2




Introduction
VANITY METRICS VS. BETTER METRICS

Marketers are under ever-increasing pressure to prove the value of their campaigns. With the
emergence of new channels like social media, marketers often don’t know which metrics to
focus on and how to properly attribute results. This forces marketers to pursue metrics that
don’t actually impact their bottom line, instead of the metrics that truly matter. These kinds
of “vanity metrics” seem substantial at first glance, but upon deeper analysis, usually do not
correlate with sales success.

Today’s marketing analytics are powerful. Marketers now have access to all kinds of metrics,
from page views and number of fans to more revealing statistics involving leads and sales. With
the growing transparency in marketing data, it’s easy to get caught up in data that – more often
than not – is not actually impacting your revenue.

It is important to distinguish between these two types of metrics. Vanity metrics can be useful
for some purposes, including gauging brand awareness, optimizing marketing channels, and
tracking marketing reach. Better metrics are more closely tied to your bottom line and ROI. Lets
take a look at a few more differences:




                 TIED TO PERFORMANCE                                         TIED TO REVENUE
              Vanity metrics show you how a                         Better metrics show you exactly how
            marketing channel is performing, but                   your marketing is performing in relation
            not necessarily in terms of revenue.                            to your bottom line.

                        EASY TO TRACK                                       HARDER TO TRACK
             Vanity metrics are often the “out of                   Better metrics can be more difficult to
           the box” statistics available from most                 track, but provide far more insight than
                     analytics platforms.                                       vanity metrics.

                 HELP WITH OPTIMIZATION                             HELP WITH SPEND EFFICIENCY
            Vanity metrics can help you increase                   Better metrics allow you to accurately
            your marketing reach, audience, and                    tie marketing activities to the revenue
                     campaign impact.                                     each channel generates.


This white paper will explore the common vanity metrics for the major marketing channels as
well as some improved metrics that you should be tracking.
                                                                                                                                TM




www.pardot.com    /    404.492.6845    /   ©2012 Pardot, LLC   /     All rights reserved worldwide
                                                                                                             marketing automation
Pardot               Marketing Metrics That Matter                                                            Page 3




Chapter 1
EMAIL MARKETING RENAISSANCE

Despite all of the recent attention given to social media, email remains the workhorse of
most online marketers. As one of the oldest online marketing tools, email has continued to
evolve alongside the new technologies that surround it. Email marketers now have access to
more data than ever and are able to focus on relevancy, segmentation, and deliverability with
significant accuracy.

EMAIL MARKETING METRICS

With so much available data, many marketers lose sight of the metrics that matter most. Let’s
take a look at the vanity metrics common to email marketing and the better metrics that can
supplement them.

VANITY EMAIL METRICS


                     Deliverability Rate: if your emails are not getting through to your prospects, this
                     will be revealed in your deliverability rate. A high deliverability rate means your list
                     is clean – or that you don’t have many bad email addresses on it.



                     Open Rate: although open rate was once the only metric used to measure
                     the success of an email marketing campaign, it is an unreliable and innacurate
                     measurement for success. When emails are viewed in text only format, as they
                     are on devices like Blackberries, opens are not recorded while false opens are
                     often recorded in email clients with preview panels.



                     Share Stats: forwards and recommendations are great talking points that let
                     you know that you’ve created a compelling message. However, shares that
                     don’t result in new sales or lead opportunities cannot be tied to ROI.




                                                                                                                     TM




www.pardot.com   /    404.492.6845    /   ©2012 Pardot, LLC   /   All rights reserved worldwide
                                                                                                  marketing automation
Pardot               Marketing Metrics That Matter                                                            Page 4


BETTER METRICS
Email’s vanity metrics are those that can’t be tied directly to ROI and sales numbers.
Conversion-related metrics are those that are trackable, measurable, and where your attention
should be focused.



                     CTA Completion Rate: your form’s completion rate gives you insight into your
                     campaign’s strengths and weaknesses. A low completion rate might mean your
                     content isn’t persuasive enough, your list isn’t targeted properly, or even that
                     your form is too long for prospects. The number of actual leads your campaign
                     drives is a metric that truly matters.



                     Acquisition Rate: the percentage of your leads that turn into actual sales is one
                     of your most important metrics. Driving a high number of leads that aren’t sales-
                     worthy might mean your lead quality is low, or that your marketing message isn’t
                     fine-tuned enough to attract the type of leads that will convert for you.



                     Site Conversion Rate: this refers to how many of your prospects close your
                     email, but then return to your site at a future date and convert at that moment.
                     A seemingly unsuccessful email campaign might actually drive leads post-email,
                     so it’s important to have deep tracking in place. Fortunately, Pardot allows you
                     to track all of your interactions with your prospects so you can see when they
                     convert and how they interacted with your various marketing campaigns.



                     CPA (Cost Per Acquisition): knowing the cost of acquiring a new customer
                     is very useful. It lets you know how much you can afford to spend on your
                     marketing and sales initiatives while still being able to reach your target ROI.
                     Your CPA can be diluted by tactics that overlap, so it’s important to track and
                     attribute properly so you can get a true CPA.




                                                                                                                     TM




www.pardot.com   /    404.492.6845    /   ©2012 Pardot, LLC   /   All rights reserved worldwide
                                                                                                  marketing automation
Pardot               Marketing Metrics That Matter                                                            Page 5




Chapter 2
SOCIAL MEDIA STATE OF AFFAIRS

Social media is all the rage these days, and it’s easy to see why. Facebook, Twitter, LinkedIn,
and YouTube provide access to audiences of millions, allow companies to form relationships
with their customers, and produce customer insights in volumes that marketers would have
never thought possible. While nearly everyone agrees that social media is valuable, tracking
and proving true ROI still remains a challenge.

SOCIAL MEDIA METRICS

Social selling is a different user experience than other sales funnels, making it notoriously hard
to track return on investment. Since social media first began to rise in popularity, the number
one complaint from skeptical business owners has been the questionable return on investment.

This ambiguity in effectiveness is not a result of the social channel, but a result of tracking the
wrong metrics. Below are a list of the common vanity metrics used to measure social media,
as well as a list of better metrics that will provide more insight into the financial performance of
your social marketing.



VANITY METRICS

                     Number of Posts: Many marketers make the incorrect assumption that
                     more social posts means more exposure. The key isn’t to constantly spit out
                     content and inundate your followers. You should be releasing useful content
                     on a scheduled basis so that your followers feel like they’re getting something
                     valuable from you.



                     Re-tweets: Re-tweets do have a stronger tie to the amount of exposure your
                     posts are receiving, but tell you little about their performance in terms of your
                     marketing goals.



                     Number of Friends/Followers/Subscribers: Think of quality over quantity.
                     Huge numbers are largely unimportant if you aren’t being followed by key
                     influencers in your space. Many of your folowers will never become leads or
                     share your message with your target audience.

                                                                                                                     TM




www.pardot.com   /    404.492.6845    /   ©2012 Pardot, LLC   /   All rights reserved worldwide
                                                                                                  marketing automation
Pardot               Marketing Metrics That Matter                                                            Page 6



BETTER METRICS

                     Number of High Quality Leads: While social media is great for engagement,
                     the metrics that matter are the ones that measure the number of leads you are
                     generating. Tying your social media campaigns to the leads they generate will
                     give you and accurate look at how your campaign is performing.



                     Lead Conversion to Sales: a number just as important as the number of leads
                     your social media campaigns are generating is the percent of those leads that
                     become customers and drive revenue.


                     Purchasing Behaviors: do your Facebook fans purchase your products more
                     frequently? Do they upgrade, subscribe for longer periods, spend more time on
                     your website? These are all telling signs that your social media campaigns are
                     giving you results.



                     Referrals: are your social media campaigns sending new business your way?
                     Ideally, your social media fans would be driving additional leads and sales for
                     your company and serving as your brand evangelists.




                 TIPS FOR TRACKING SOCIAL
                 Custom Redirects: Impressions are often tracked by brands that can
                 afford to spend millions on paid search. They refer to the .


                 Promoted Tweets: Promoted tweets not only put your message in front
                 of more people, but also allows you to track exposure and engagement.

                 Closed-Loop Reporting: Closed-loop reporting services allow you to
                 tie each sale to their original point of entry, which may have been a social
                 post.




                                                                                                                     TM




www.pardot.com   /    404.492.6845    /   ©2012 Pardot, LLC   /   All rights reserved worldwide
                                                                                                  marketing automation
Pardot               Marketing Metrics That Matter                                                            Page 7




Chapter 3
PAID SEARCH LANDSCAPE

Paid search campaigns have experienced many advancements in tracking. They are extremely
versatile and can be used to run both branding and cost-per-acquisition campaigns. The
flexibility of the major paid search engine platforms means you can optimize underperforming
campaigns almost instantly in order to improve your ROI.

PAID SEARCH METRICS

A lot has been written about paid search metrics and how measurable they are. Depending
on the type of campaign, you may want to weigh different factors more heavily. For most small
and medium sized businesses SMBs), increasing awareness is not the primary goal of a paid
search campaign because it’s inefficient for their revenue goals. Most SMBs use paid search to
drive leads and sales.

VANITY METRICS

                     IMP (Impressions): Impressions are often tracked by brands that can afford to
                     spend millions on paid search. They refer to the total number of people that are
                     exposed to your ads. Impressions can’t be directly tied to leads and sales.



                     POS (Position): Advertising agencies love to tout the position of your paid
                     search ad as a success metric. A top 3 position is usually exponentially
                     more expensive than a position in the 4-6 spot, and often generates a lot of
                     unqualified clicks. A slightly lower position is more economical.



                     Clicks: clicks speak to your ad’s position and its relevancy. If more people
                     are clicking on your ad, that usually means your ad is positioned well and is
                     resonating with viewers. However, if the people clicking on your ad are not your
                     target customers and are just unqualified traffic, then you are simply wasting
                     marketing dollars.



                     CPC (Cost Per Click): your cost per click is important to be mindful of, but it
                     should not be a defining metric for your paid search campaigns. For SMBs,
                     especially B2Bs with long sales cycles and a high cost per lead, a high CPC is
                     almost expected.
                                                                                                                     TM




www.pardot.com   /    404.492.6845    /   ©2012 Pardot, LLC   /   All rights reserved worldwide
                                                                                                  marketing automation
Pardot               Marketing Metrics That Matter                                                            Page 8


BETTER METRICS

                     Leads: you should be focusing on the number and quality of leads generated
                     by your paid search campaigns. If your paid search budgets are tapped out,
                     focus on trimming the fat and optimizing your paid search campaigns. Get rid of
                     keywords that don’t result in leads, and tweak your landing pages and ad copy
                     to focus on what you want. One great way to prevent unqualified clicks is by
                     including a price point in your paid search ad.



                     CPL (Cost Per Lead): your cost per lead is a telling metric. Once you develop
                     your own target CPL, you can map your paid search campaigns to that goal
                     and optimize based on that larger metric. You’ll save precious bandwidth by
                     focusing on your larger, overriding CPL goals and not on smaller, micro-goals
                     like your CPC.



                     CPA (Cost Per Acquisition): your cost per acquisition tells you how much it
                     actually costs to acquire a new customer. It may only cost you $10 to generate
                     a paid search lead, but once you pass those leads on to your sales team and
                     have them dedicate their resources to closing a deal, it may cost you over $500
                     to acquire a new customer. With your CPA metric, you can back out all of your
                     other success metrics to determine what they should be and optimize your
                     entire paid search efforts around that goal.




                 TIPS FOR PREVENTING UNQUALIFIED CLICKS
                 A/B Test: The surest way to prevent unqualified clicks is to test different
                 layouts, copy, and offers to determine which elements perform best.

                 Include Price Points: Including price points in your ad will help deter
                 clicks from viewers who may not be interested in purchasing.

                 Tweak Keywords: Certain keywords are more likely to attract unqualified
                 buyers. Continually assess keyword effectiveness to cut down on
                 unqualified clicks.




                                                                                                                     TM




www.pardot.com   /    404.492.6845    /   ©2012 Pardot, LLC   /   All rights reserved worldwide
                                                                                                  marketing automation
Pardot               Marketing Metrics That Matter                                                            Page 9




Chapter 4
(RE)EMERGENCE OF DISPLAY

Over the last few years, the display advertising landscape has been revitalized, largely due to
changes in the competitive landscape, better bid models, and improved targeting capabilities.
Of course, on the heels of this improved technology came the advent of smarter analytics (and
marketers!) that helped shift the display landscape to one of proper attribution.

DISPLAY METRICS
Historically, display had been used as a branding and awareness tool, largely supported by
agencies and companies with large marketing budgets. The emergence of retargeting and the
ability to measure metrics more applicable to SMBs has made it possible to track more useful
metrics that can be accurately tied to ROI. Below is a list of traditional vanity metrics for display
advertising and some better metrics that can now be tracked through analytics.

VANITY METRICS

                     IMP (Impressions): the high volume of impressions and the resulting brand
                     recognition were the biggest selling points for the traditional display model. As
                     we now know, however, display ads didn’t drive response the way other more
                     effective online tactics did. Impressions are irrelevant if the traffic is unqualified
                     and doesn’t eventually result in leads or sales.



                     CTR (Click Through Rate): although clicks are desirable, accidental clicks and
                     high bounce rates make click through rates unreliable metrics for tracking the
                     success of an ad.



                     CPM (Cost Per Mille): the old pricing model for display ads was simply a cost
                     for 1,000 impressions, or a CPM. In the past, this was the only pricing model
                     that publishers were willing to entertain, because they knew they would never
                     be able to justify a CPC or CPL model because the numbers would never back
                     out from an ROI perspective.




                                                                                                                     TM




www.pardot.com   /    404.492.6845    /   ©2012 Pardot, LLC   /   All rights reserved worldwide
                                                                                                  marketing automation
Pardot               Marketing Metrics That Matter                                                          Page 10


BETTER METRICS

                     CTL (Click to Lead): instead of focusing on a CPC metric, marketers should
                     focus on the number of people clicking on an ad that eventually become leads.
                     That allows for better ad targeting and optimization, and better end results.
                     After all, shouldn’t we be more interested in bottom line numbers like leads and
                     sales?



                     CPL (Cost Per Lead): fortunately, there are pricing models now that focus on
                     CPC or an estimated CPL, helping marketers justify display campaigns and
                     properly attribute and track results.



                     CPA (Cost Per Acquisition): like any marketer driven by CPA goals, you
                     should also focus on CPA numbers for your display campaigns. While branding
                     exercises are cool, if they aren’t resulting in reportable success metrics, they
                     shouldn’t be your focus.




                 TIPS FOR SUCCESSFUL ADS
                 Clear Call-to-Action: Making your call to action clear and concise will
                 help viewers to better understand what you would like them to do.

                 Simple Design: The simplier your design, the easier it is for viewers to
                 understand what you are asking for and what you are offering.

                 Value Proposition: Offering something of value in your ad, whether that
                 is a white paper or special promotion, will help motivate viewers to take
                 action and click on your ad.




                                                                                                                     TM




www.pardot.com   /    404.492.6845    /   ©2012 Pardot, LLC   /   All rights reserved worldwide
                                                                                                  marketing automation
MARKETING METRICS THAT MATTER

          Marketers have access to more metrics than ever before. That’s why it is
              more important than ever to track the metrics that matter most.
                                            = Vanity Metric                  = Better Metric



                                 Bounce                         Sharing                    Open                Deliverability
                                 Rate                           Stats                      Rate                Rate
  EMAIL
 METRICS                    +
                                                            Site
                                 Acquisition                Conversion                     Cost Per             Form
                                 Rate                       Rate                           Acquisition          Conversions




                                                       4
                                 Re-tweets/                 Friends/                      Number of
                                 Shares                     Followers                     Posts
 SOCIAL
 METRICS                    4
                                 Number                     Closed                         Purchasing
                                                            Deals                                               Referrals
                                 of Leads                                                  Behavior




                                                                                           Click
                                Impressions                 Ad                             Through              Cost Per
                                                            Position                                            Click
PAID SEARCH                                                                                Rate

  METRICS                   4
                                 Number                     Cost Per               $       Cost Per
                                 of Leads                   Lead                           Acquisition




                                                            Click
                                                                                   $
                                                                                           Cost Per
                                Impressions                 Through
                                                                                           Impression
                                                            Rate
 DISPLAY
 METRICS                         Click To                   Cost Per                       Cost Per
                                                                                   $
                                 Lead                       Lead                           Acquisition




                                                                                                                            TM




  www.pardot.com   /   404.492.6845   /     ©2012 Pardot, LLC     /   All rights reserved worldwide
                                                                                                         marketing automation
Pardot               Marketing Metrics That Matter                                                          Page 12




Chapter 5
CONCLUSION

It’s easy to get lost in the hype surrounding vanity metrics. After all, they often make you look
good! Information about tactics like social media and wide-reaching branding metrics can give
us interesting data points about our target customer, our brand evangelists, and the overall
breadth of our company.

However, these numbers don’t tell the entire story, and in fact, can vcause us to lose focus on
the metrics that truly matter – the ones impacting our company’s bottom line. So remember
your vanity metrics, but manage your campaigns using better metrics – the ones that matter.




PARDOT IS A MARKETING
AUTOMATION COMPANY.
Founded in 2007, we are located in
Atlanta, GA and focus on providing
hassle free automation solutions for
small to medium sized business in the
B2B space.


CONNECT WITH US
Pardot’s Website
Pardot’s Twitter
404.492.6845




                                                                                                                     TM




www.pardot.com   /    404.492.6845    /   ©2012 Pardot, LLC   /   All rights reserved worldwide
                                                                                                  marketing automation

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Marketing Metrics That Matter

  • 1. Pardot Marketing Metrics That Matter Page 1 A Pardot White Paper MARKETING METRICS THAT MATTER Introduction Chapter 1 Email Marketing Renaissance Chapter 2 Social Media State of Affairs Chapter 3 Paid Search Landscape Chapter 4 (Re)emergence of Display Guide to Metrics that Matter Conclusion TM www.pardot.com / 404.492.6845 / ©2012 Pardot, LLC / All rights reserved worldwide marketing automation
  • 2. Pardot Marketing Metrics That Matter Page 2 Introduction VANITY METRICS VS. BETTER METRICS Marketers are under ever-increasing pressure to prove the value of their campaigns. With the emergence of new channels like social media, marketers often don’t know which metrics to focus on and how to properly attribute results. This forces marketers to pursue metrics that don’t actually impact their bottom line, instead of the metrics that truly matter. These kinds of “vanity metrics” seem substantial at first glance, but upon deeper analysis, usually do not correlate with sales success. Today’s marketing analytics are powerful. Marketers now have access to all kinds of metrics, from page views and number of fans to more revealing statistics involving leads and sales. With the growing transparency in marketing data, it’s easy to get caught up in data that – more often than not – is not actually impacting your revenue. It is important to distinguish between these two types of metrics. Vanity metrics can be useful for some purposes, including gauging brand awareness, optimizing marketing channels, and tracking marketing reach. Better metrics are more closely tied to your bottom line and ROI. Lets take a look at a few more differences: TIED TO PERFORMANCE TIED TO REVENUE Vanity metrics show you how a Better metrics show you exactly how marketing channel is performing, but your marketing is performing in relation not necessarily in terms of revenue. to your bottom line. EASY TO TRACK HARDER TO TRACK Vanity metrics are often the “out of Better metrics can be more difficult to the box” statistics available from most track, but provide far more insight than analytics platforms. vanity metrics. HELP WITH OPTIMIZATION HELP WITH SPEND EFFICIENCY Vanity metrics can help you increase Better metrics allow you to accurately your marketing reach, audience, and tie marketing activities to the revenue campaign impact. each channel generates. This white paper will explore the common vanity metrics for the major marketing channels as well as some improved metrics that you should be tracking. TM www.pardot.com / 404.492.6845 / ©2012 Pardot, LLC / All rights reserved worldwide marketing automation
  • 3. Pardot Marketing Metrics That Matter Page 3 Chapter 1 EMAIL MARKETING RENAISSANCE Despite all of the recent attention given to social media, email remains the workhorse of most online marketers. As one of the oldest online marketing tools, email has continued to evolve alongside the new technologies that surround it. Email marketers now have access to more data than ever and are able to focus on relevancy, segmentation, and deliverability with significant accuracy. EMAIL MARKETING METRICS With so much available data, many marketers lose sight of the metrics that matter most. Let’s take a look at the vanity metrics common to email marketing and the better metrics that can supplement them. VANITY EMAIL METRICS Deliverability Rate: if your emails are not getting through to your prospects, this will be revealed in your deliverability rate. A high deliverability rate means your list is clean – or that you don’t have many bad email addresses on it. Open Rate: although open rate was once the only metric used to measure the success of an email marketing campaign, it is an unreliable and innacurate measurement for success. When emails are viewed in text only format, as they are on devices like Blackberries, opens are not recorded while false opens are often recorded in email clients with preview panels. Share Stats: forwards and recommendations are great talking points that let you know that you’ve created a compelling message. However, shares that don’t result in new sales or lead opportunities cannot be tied to ROI. TM www.pardot.com / 404.492.6845 / ©2012 Pardot, LLC / All rights reserved worldwide marketing automation
  • 4. Pardot Marketing Metrics That Matter Page 4 BETTER METRICS Email’s vanity metrics are those that can’t be tied directly to ROI and sales numbers. Conversion-related metrics are those that are trackable, measurable, and where your attention should be focused. CTA Completion Rate: your form’s completion rate gives you insight into your campaign’s strengths and weaknesses. A low completion rate might mean your content isn’t persuasive enough, your list isn’t targeted properly, or even that your form is too long for prospects. The number of actual leads your campaign drives is a metric that truly matters. Acquisition Rate: the percentage of your leads that turn into actual sales is one of your most important metrics. Driving a high number of leads that aren’t sales- worthy might mean your lead quality is low, or that your marketing message isn’t fine-tuned enough to attract the type of leads that will convert for you. Site Conversion Rate: this refers to how many of your prospects close your email, but then return to your site at a future date and convert at that moment. A seemingly unsuccessful email campaign might actually drive leads post-email, so it’s important to have deep tracking in place. Fortunately, Pardot allows you to track all of your interactions with your prospects so you can see when they convert and how they interacted with your various marketing campaigns. CPA (Cost Per Acquisition): knowing the cost of acquiring a new customer is very useful. It lets you know how much you can afford to spend on your marketing and sales initiatives while still being able to reach your target ROI. Your CPA can be diluted by tactics that overlap, so it’s important to track and attribute properly so you can get a true CPA. TM www.pardot.com / 404.492.6845 / ©2012 Pardot, LLC / All rights reserved worldwide marketing automation
  • 5. Pardot Marketing Metrics That Matter Page 5 Chapter 2 SOCIAL MEDIA STATE OF AFFAIRS Social media is all the rage these days, and it’s easy to see why. Facebook, Twitter, LinkedIn, and YouTube provide access to audiences of millions, allow companies to form relationships with their customers, and produce customer insights in volumes that marketers would have never thought possible. While nearly everyone agrees that social media is valuable, tracking and proving true ROI still remains a challenge. SOCIAL MEDIA METRICS Social selling is a different user experience than other sales funnels, making it notoriously hard to track return on investment. Since social media first began to rise in popularity, the number one complaint from skeptical business owners has been the questionable return on investment. This ambiguity in effectiveness is not a result of the social channel, but a result of tracking the wrong metrics. Below are a list of the common vanity metrics used to measure social media, as well as a list of better metrics that will provide more insight into the financial performance of your social marketing. VANITY METRICS Number of Posts: Many marketers make the incorrect assumption that more social posts means more exposure. The key isn’t to constantly spit out content and inundate your followers. You should be releasing useful content on a scheduled basis so that your followers feel like they’re getting something valuable from you. Re-tweets: Re-tweets do have a stronger tie to the amount of exposure your posts are receiving, but tell you little about their performance in terms of your marketing goals. Number of Friends/Followers/Subscribers: Think of quality over quantity. Huge numbers are largely unimportant if you aren’t being followed by key influencers in your space. Many of your folowers will never become leads or share your message with your target audience. TM www.pardot.com / 404.492.6845 / ©2012 Pardot, LLC / All rights reserved worldwide marketing automation
  • 6. Pardot Marketing Metrics That Matter Page 6 BETTER METRICS Number of High Quality Leads: While social media is great for engagement, the metrics that matter are the ones that measure the number of leads you are generating. Tying your social media campaigns to the leads they generate will give you and accurate look at how your campaign is performing. Lead Conversion to Sales: a number just as important as the number of leads your social media campaigns are generating is the percent of those leads that become customers and drive revenue. Purchasing Behaviors: do your Facebook fans purchase your products more frequently? Do they upgrade, subscribe for longer periods, spend more time on your website? These are all telling signs that your social media campaigns are giving you results. Referrals: are your social media campaigns sending new business your way? Ideally, your social media fans would be driving additional leads and sales for your company and serving as your brand evangelists. TIPS FOR TRACKING SOCIAL Custom Redirects: Impressions are often tracked by brands that can afford to spend millions on paid search. They refer to the . Promoted Tweets: Promoted tweets not only put your message in front of more people, but also allows you to track exposure and engagement. Closed-Loop Reporting: Closed-loop reporting services allow you to tie each sale to their original point of entry, which may have been a social post. TM www.pardot.com / 404.492.6845 / ©2012 Pardot, LLC / All rights reserved worldwide marketing automation
  • 7. Pardot Marketing Metrics That Matter Page 7 Chapter 3 PAID SEARCH LANDSCAPE Paid search campaigns have experienced many advancements in tracking. They are extremely versatile and can be used to run both branding and cost-per-acquisition campaigns. The flexibility of the major paid search engine platforms means you can optimize underperforming campaigns almost instantly in order to improve your ROI. PAID SEARCH METRICS A lot has been written about paid search metrics and how measurable they are. Depending on the type of campaign, you may want to weigh different factors more heavily. For most small and medium sized businesses SMBs), increasing awareness is not the primary goal of a paid search campaign because it’s inefficient for their revenue goals. Most SMBs use paid search to drive leads and sales. VANITY METRICS IMP (Impressions): Impressions are often tracked by brands that can afford to spend millions on paid search. They refer to the total number of people that are exposed to your ads. Impressions can’t be directly tied to leads and sales. POS (Position): Advertising agencies love to tout the position of your paid search ad as a success metric. A top 3 position is usually exponentially more expensive than a position in the 4-6 spot, and often generates a lot of unqualified clicks. A slightly lower position is more economical. Clicks: clicks speak to your ad’s position and its relevancy. If more people are clicking on your ad, that usually means your ad is positioned well and is resonating with viewers. However, if the people clicking on your ad are not your target customers and are just unqualified traffic, then you are simply wasting marketing dollars. CPC (Cost Per Click): your cost per click is important to be mindful of, but it should not be a defining metric for your paid search campaigns. For SMBs, especially B2Bs with long sales cycles and a high cost per lead, a high CPC is almost expected. TM www.pardot.com / 404.492.6845 / ©2012 Pardot, LLC / All rights reserved worldwide marketing automation
  • 8. Pardot Marketing Metrics That Matter Page 8 BETTER METRICS Leads: you should be focusing on the number and quality of leads generated by your paid search campaigns. If your paid search budgets are tapped out, focus on trimming the fat and optimizing your paid search campaigns. Get rid of keywords that don’t result in leads, and tweak your landing pages and ad copy to focus on what you want. One great way to prevent unqualified clicks is by including a price point in your paid search ad. CPL (Cost Per Lead): your cost per lead is a telling metric. Once you develop your own target CPL, you can map your paid search campaigns to that goal and optimize based on that larger metric. You’ll save precious bandwidth by focusing on your larger, overriding CPL goals and not on smaller, micro-goals like your CPC. CPA (Cost Per Acquisition): your cost per acquisition tells you how much it actually costs to acquire a new customer. It may only cost you $10 to generate a paid search lead, but once you pass those leads on to your sales team and have them dedicate their resources to closing a deal, it may cost you over $500 to acquire a new customer. With your CPA metric, you can back out all of your other success metrics to determine what they should be and optimize your entire paid search efforts around that goal. TIPS FOR PREVENTING UNQUALIFIED CLICKS A/B Test: The surest way to prevent unqualified clicks is to test different layouts, copy, and offers to determine which elements perform best. Include Price Points: Including price points in your ad will help deter clicks from viewers who may not be interested in purchasing. Tweak Keywords: Certain keywords are more likely to attract unqualified buyers. Continually assess keyword effectiveness to cut down on unqualified clicks. TM www.pardot.com / 404.492.6845 / ©2012 Pardot, LLC / All rights reserved worldwide marketing automation
  • 9. Pardot Marketing Metrics That Matter Page 9 Chapter 4 (RE)EMERGENCE OF DISPLAY Over the last few years, the display advertising landscape has been revitalized, largely due to changes in the competitive landscape, better bid models, and improved targeting capabilities. Of course, on the heels of this improved technology came the advent of smarter analytics (and marketers!) that helped shift the display landscape to one of proper attribution. DISPLAY METRICS Historically, display had been used as a branding and awareness tool, largely supported by agencies and companies with large marketing budgets. The emergence of retargeting and the ability to measure metrics more applicable to SMBs has made it possible to track more useful metrics that can be accurately tied to ROI. Below is a list of traditional vanity metrics for display advertising and some better metrics that can now be tracked through analytics. VANITY METRICS IMP (Impressions): the high volume of impressions and the resulting brand recognition were the biggest selling points for the traditional display model. As we now know, however, display ads didn’t drive response the way other more effective online tactics did. Impressions are irrelevant if the traffic is unqualified and doesn’t eventually result in leads or sales. CTR (Click Through Rate): although clicks are desirable, accidental clicks and high bounce rates make click through rates unreliable metrics for tracking the success of an ad. CPM (Cost Per Mille): the old pricing model for display ads was simply a cost for 1,000 impressions, or a CPM. In the past, this was the only pricing model that publishers were willing to entertain, because they knew they would never be able to justify a CPC or CPL model because the numbers would never back out from an ROI perspective. TM www.pardot.com / 404.492.6845 / ©2012 Pardot, LLC / All rights reserved worldwide marketing automation
  • 10. Pardot Marketing Metrics That Matter Page 10 BETTER METRICS CTL (Click to Lead): instead of focusing on a CPC metric, marketers should focus on the number of people clicking on an ad that eventually become leads. That allows for better ad targeting and optimization, and better end results. After all, shouldn’t we be more interested in bottom line numbers like leads and sales? CPL (Cost Per Lead): fortunately, there are pricing models now that focus on CPC or an estimated CPL, helping marketers justify display campaigns and properly attribute and track results. CPA (Cost Per Acquisition): like any marketer driven by CPA goals, you should also focus on CPA numbers for your display campaigns. While branding exercises are cool, if they aren’t resulting in reportable success metrics, they shouldn’t be your focus. TIPS FOR SUCCESSFUL ADS Clear Call-to-Action: Making your call to action clear and concise will help viewers to better understand what you would like them to do. Simple Design: The simplier your design, the easier it is for viewers to understand what you are asking for and what you are offering. Value Proposition: Offering something of value in your ad, whether that is a white paper or special promotion, will help motivate viewers to take action and click on your ad. TM www.pardot.com / 404.492.6845 / ©2012 Pardot, LLC / All rights reserved worldwide marketing automation
  • 11. MARKETING METRICS THAT MATTER Marketers have access to more metrics than ever before. That’s why it is more important than ever to track the metrics that matter most. = Vanity Metric = Better Metric Bounce Sharing Open Deliverability Rate Stats Rate Rate EMAIL METRICS + Site Acquisition Conversion Cost Per Form Rate Rate Acquisition Conversions 4 Re-tweets/ Friends/ Number of Shares Followers Posts SOCIAL METRICS 4 Number Closed Purchasing Deals Referrals of Leads Behavior Click Impressions Ad Through Cost Per Position Click PAID SEARCH Rate METRICS 4 Number Cost Per $ Cost Per of Leads Lead Acquisition Click $ Cost Per Impressions Through Impression Rate DISPLAY METRICS Click To Cost Per Cost Per $ Lead Lead Acquisition TM www.pardot.com / 404.492.6845 / ©2012 Pardot, LLC / All rights reserved worldwide marketing automation
  • 12. Pardot Marketing Metrics That Matter Page 12 Chapter 5 CONCLUSION It’s easy to get lost in the hype surrounding vanity metrics. After all, they often make you look good! Information about tactics like social media and wide-reaching branding metrics can give us interesting data points about our target customer, our brand evangelists, and the overall breadth of our company. However, these numbers don’t tell the entire story, and in fact, can vcause us to lose focus on the metrics that truly matter – the ones impacting our company’s bottom line. So remember your vanity metrics, but manage your campaigns using better metrics – the ones that matter. PARDOT IS A MARKETING AUTOMATION COMPANY. Founded in 2007, we are located in Atlanta, GA and focus on providing hassle free automation solutions for small to medium sized business in the B2B space. CONNECT WITH US Pardot’s Website Pardot’s Twitter 404.492.6845 TM www.pardot.com / 404.492.6845 / ©2012 Pardot, LLC / All rights reserved worldwide marketing automation