Over the past two years I’ve met with a number of Chief Marketing Officers from a wide variety of verticals and from all over the country, and the number one issue they all tell me they face is measuring the effectiveness of their marketing initiatives. Understandably, these executives are required by their Boards to prove that marketing budgets are wisely spent and increasing revenue, so accuracy is obviously paramount.
Gone are the days when brands would pump money into senseless, measureless, and (often) ineffective advertising. True, as marketers we should – and must – adapt and embrace new technologies in order to attract leads and increase sales for our clients, but that doesn’t necessarily mean turning our collective back on other time-tested marketing practices. When it comes to measuring ROI of a marketing campaign, there’s a plethora of advice to be had from all over the place, so finding the most effective combination of tools, metrics, and formulas can often be overwhelming.
One measurement strategy we’re fond of here at DX is the matchback. After creating a modeled prospect universe for a client, we target those most likely to become customers. During and after the campaign, we review the new customer list and align it with our targeted prospect file to find out who became a customer.
Long story short, the results of that data mashup reveal how many new customers a given campaign actually managed to compile. The resulting ROI measurement is then predicated on metrics set by the client prior to the campaign’s launch.
This matchback methodology focuses on converting customers instead of counting clicks. Companies are constantly tracking click-through rates, and rightfully so, but they should focus even more on the effectiveness of those clicks. Prioritizing conversions instead of clicks will allow you to effectively measure the true ROI of a campaign, and it will certainly help companies measure the efficiency of their marketing expenditures.