According to Matt Davies Stockton, business owners often track the wrong metrics for their marketing campaigns. You need to plan and create impactful marketing campaigns that need to be targeted at and seen by the right people at the right time. However, you also need to track that campaign’s effectiveness properly. Here are the mistakes you should avoid while doing that.
1. Not tracking your results – The most common mistake most business owners make is not tracking and measuring their marketing ROI. This may be due to the lack of a proper tracking setup, inadequate knowledge of tracking the right results, or not reviewing the tracking results and implementing the insights you got from them.
You should be able to track results through your customer’s lifecycle, especially if you’re running digital marketing campaigns. This can be streamlined with a partner and their own technology. Using a single partner helps to reduce data wastage and is very useful for stitching different technologies together in your existing framework.
2. You track the wrong metrics – Tracking the wrong metrics is another common mistake. The data collected and analyzed by you is useless if it isn’t relevant to your marketing goals. Brands often track irrelevant and showy metrics like social media followers, subscribers, and views without figuring out how that data helps them get close to their business goals. In the short term, you may feel good seeing the rising count of followers and page visits.
However, in the long run, you’re simply wasting your marketing budget on the wrong activities that don’t impact your sales figures in any way. Tracking wrong metrics may also move you away from your business goals and lead to an ever-decreasing marketing budget as sales keep dropping. Be clear about tracking and analyzing the right metrics that are useful for your business and have an impact on your bottom line.
3. Understanding CPA and CLV – CLV and CPA are very important metrics. However, if you don’t understand them well, it’s not an optimal use of your marketing budget. For instance, an ad that delivers a good cost per click (CPC) may be sending a lot of traffic to your landing page. However, it’s useless if a good fraction of that traffic isn’t getting converted into paying customers.
On the other hand, if an ad has a higher fraction of traffic clicking through to the end of the desired action despite a low CPC, that ad has a much less cost per acquisition (CPA). That’s why CPA is usually more important than CPC. You also need to be aware of customer lifetime acquisition (CLV). For instance, if two ads with different CPAs bring in different types of customers, the one with the higher CLV is more successful.
Matt Davies Stockton suggests that you avoid the above-mentioned mistakes and rethink tracking to maximize your ROI in the future. Don’t track the wrong metrics, understand your CPA and CLV, and measure your incremental ROI to boost your marketing campaign’s effectiveness.