Using Data to Improve Your Marketing ROI
Posted March 21, 2018 in Articles
Marketing dollars are an investment. Like any other investment, when spending on marketing, businesses need to make informed decisions based upon relevant and reliable data.
But, too often, companies make assumptions rather than reaching verifiable conclusions. Revenue is up, so the current marketing strategy must be working. But, is it really? Or, are there other factors at play? If it is working, is achieving your company’s full market potential, or is there still room for growth?
These are critical questions for companies in all markets and industries. If you do not know your marketing return on investment (ROI), you are not making fully informed decisions. When developing their marketing strategies, companies need to factor data collection into the equation and examine their results based upon quantifiable information.
Data Points for Marketing ROI Analysis
In order to examine marketing ROI, the first step is to determine what data are relevant. Budget is an obvious consideration, but what other pieces of information do you need in order to assess whether you are using your budget as effectively as possible? In general, in order to legitimately analyze marketing ROI, companies will need internal and comparative external data pertaining to factors such as:
- Media formats and outlets
- Customer demographics
- Brand awareness
- Content marketing and social media effectiveness
- New business acquisition versus expansion of existing customer relationships
- Marketing touch points and first touch/last touch analysis
- External factors (such as seasonal business fluctuations)
Tools for Analyzing Marketing ROI
Once you know which data you need to capture, then you can decide which tools will be most effective for analyzing your marketing ROI. The right answer is by no means uniform for all businesses. Depending upon your target market, whether you focus on digital marketing or in-person marketing, whether you emphasize content or social media, and various other factors, appropriate tools may include:
- A/B Marketing – A method which involves testing different marketing strategies simultaneously or in sequence in order to determine which is more effective.
- Test and Control Groups – Similar to A/B marketing, but involves comparing a test marketing strategy to a control group rather than comparing the effectiveness of two different strategies.
- Real-Time Search Engine Optimization (SEO) and Social Media Analysis – Using analytics software to assess the impact of digital marketing strategies in real time in order to adapt and evolve on a continuous basis.
- Market Mix Modeling (MMM) – Using statistical analysis tools in order to project the revenue impact of various marketing tactics being used simultaneously.
- Post-Mortem Analysis – Using data analytics methodologies in order to determine how a particular marketing strategy has impacted the company’s bottom line.
Of course, neither of the lists above are intended to be exhaustive. Determining the best strategy for your company requires a thorough assessment of all of the various factors that separate your company from the competition. The more you know, the more you can grow and the more separation you can build in the market.
Contact Mithras Investments
Mithras Investments is a global consulting firm that provides data-driven insights to companies worldwide. If you would like to know more about the effectiveness of your company’s marketing strategies, please call (305) 517-7911 or get in touch online today.