It wasn’t always easy to measure the results of marketing campaigns, even direct mail. But thanks to more sophisticated online analytics tools, you can turn even the smallest marketing budget into a profit driver.
What do Analytics Measure?
Analytics measure how much traction you’re getting from your marketing campaigns. Because the measurement tools have become more detailed and accurate, you can now measure every aspect of your campaign, including ads, blogs, web pages and keywords. Whatever your end goal, there are numerous ways to measure it.
Cost per lead/Acquisition measures the money you spend to generate one lead or acquire one new customer.
Cost per click measures what you spend to prompt one person to click on your site or landing page.
Revenue per click, conversely, measures how much money you generate from each click on your site.
Return on investment compares the revenue generated against the total cost of a campaign.
The right analytics depend on the campaign you’re running. But whatever the specifics, you must follow the basic rules of analytics to get the most bang for your buck.
How do I use Analytics?
Your analytics program starts with a reliable program that performs as many metrics as possible. From there, your program depends on following these important steps:
1. Choose your metrics carefully
Even if you can measure every part of your campaign, you shouldn’t. Each analysis costs time and money, and if you’re not focused on the most important metrics, you might get sidetracked from the measurements that matter to your business. Set goals for your campaign and use only the measurements that help you meet them.
2. Test and optimize your results
Once you perform one measurement, you have the insight to improve, or optimize, your next campaign. For instance, suppose you want to run an ad promoting cookware. Your original ad does well, but you want to see if an ad promoting green cookware fares better. Run both ads simultaneously and compare the results, then go with the ad that does better.
3. Test one element at a time.
When you test different elements of your ad, don’t test them all at once. Otherwise, you won’t know exactly what made one ad outperform another. Every time you test, make both ads exactly the same except for one single element. It could be anything from a different headline or graphic to different offers and keywords. Over time, continue testing different elements until your marketing pieces get the best response rates possible.
Make Your Ads Measure Up!
Analytics help you ensure your marketing campaigns are doing what they’re supposed to do, so don’t take them lightly. Put a comprehensive analytics program in place and get more out of each marketing effort.