There are no good reasons to avoid measuring the success of your marketing.
If a campaign is launched and there’s no one there to measure it, does it make an impact? It’s the eternal question that modern marketers must face. With apologies to Mr. Wanamaker, we can no longer be content not knowing which of our marketing dollars are wasted.
Measuring isn’t easy. Developing a sound measurement strategy can be just as difficult as designing a sound branding or sales strategy. But here’s the kicker – it’s just as, if not more, important. Measurement allows marketers to test, learn, adapt, grow and improve their effectiveness over time. So why is it often left out of the plan?
Here are a few common excuses, and rebuttals, for not measuring the return on your marketing investment.
Too expensive. Sure, most measurement requires some extra investment. But if a program or campaign is falling flat, it’d be nice to know so you could direct that money elsewhere. And consider the additional revenue you may be missing out on. What if that regional direct mail program you thought was fairly successful is actually the most ridiculously successful marketing initiative you’ve ever run. Maybe you’d like to throw a few more dollars at it and take it nationwide.
Too “soft.” You can’t measure a new logo, tagline, color scheme, homepage design or the dozens of other “soft” tactics that can’t be traced directly to new sales, leads or customer retention, right? Well not exactly. Granted, it’s harder to get a dollar-for-dollar ROI on such tactics, but that doesn’t mean they’re immeasurable. Every marketing tactic has an intended objective. And if there’s an objective, then there’s a way to measure progress toward that objective.
Too many variables. Chances are you have multiple tactics and campaigns running concurrently. So how can you determine whether that bump in sales was due to the radio campaign, the new store layout or the recent event sponsorship? Building measurement tools like campaign-specific phone numbers or Web addresses into each initiative can help you determine exactly what’s driving sales. And if it gets even more complicated, consider using a regression analysis to help you hone in on the impact of each individual variable.
Too time consuming. Most marketing professionals spend their days juggling a dozen or more projects. And under that scenario, a project that is completed on time and on budget is considered successful. But when we do this we’re treating marketing as an expense rather than an investment in future sales. And just like you constantly measure the rate of return on your 401(k), you should measure the return on your marketing investment.
Too scary. Don’t be afraid of measurement. Better to know you failed and have a plan to fix your mistakes than to make the same mistakes year after year.
Now, you don’t have to develop spreadsheets, pie charts and Venn diagrams for each and every campaign and program you have going. Sometimes a few simple questions or observations can provide you with enough information to determine a level of success or failure. What’s important is that you actively consider the success of each initiative, learn from it and adapt your strategies as you move forward. That’s smart marketing.