If you work for the marketing industry, then you are surely familiar with marketing theory. In addition, when it comes to marketing theory, you just cannot deny how important it is to understand key marketing metrics, to ensure the success of your business. Unfortunately, there are actually a lot of people in the marketing industry who do not really grasp this importance in full. There are even some eCommerce marketers, to be more specific, who do not take the time to study the basics of key marketing metrics. This should not be the case at all. Key marketing metrics may be a relatively new concept in the industry, but its foundations have long been embedded in just about any aspect in marketing.
So, what exactly are key marketing metrics? How do you define them? In its most basic form, key marketing metrics measure the difference between marketing strategies and the results brought about by these strategies. When you start pooling ideas for marketing strategies that would potentially garner a lot of profit for the business, you actually plot out the potential profit at the end of all the hype. Let us say that you plot a potential profit of $100,000. After the marketing strategies have been executed, you discover that you have earned $110,000. Key marketing metrics actually operate to measure that gap. And profit is not the only aspect that key marketing metrics aim to measure.
In general, key marketing metrics should have the characteristics of being instant. Quick response is indeed an essential. There is actually a pretty good reason for this requirement. Your marketing campaign does not stop while your metrics are measuring the gap between the potential and the actual results at all. your marketing campaign is ongoing during this whole process. Thus, your metrics have to be quick in terms of response. What’s more, you yourself have to be capable of viewing what are known as key performance indicators, or KPIs, in the marketing scenario. Some of these KPIs include the average size of orders, click to conversion rate, and revenue per customer. These metrics are indeed critical in ensuring the success of your marketing campaign. However, you still have to take into consideration the characteristics of your target market or target customers themselves. This way, you can learn something new and useful for your next marketing campaign.
Just like all type of metrics, the main purpose of key marketing metrics is to determine and display how the activities of each member of the marketing department or team contribute to the overall success of the campaign, in accordance to the objectives originally laid out. With all the technicalities involved, key marketing metrics actually gives you a step-by-step layout of the efforts exerted by each marketing team member, and how such efforts have helped in the entirety of the marketing campaign. The evaluation of such should be matched with the objectives that have been laid out at the very start of the project. This way, you can match the potential results with the actual results brought about by the marketing campaign.