Sound management and resource allocation require that we measure marketing outcomes. We cannot measure everything and should not try to measure all that we can. In marketing, there are Process Metrics (friends, fans, likes, followers, page views, unique visitors) and Business Metrics (lead quality, lead volume, lead flow, sales closed, income generated).
What should we measure? A different way of asking this is, “Which marketing metrics should we avoid?”
Heuristic 1: Do not get hung up on inappropriate metrics
Why? It is easier to measure process metrics and lazy marketers often rely on these to the exclusion of business metrics. I am not suggesting that process metrics are unimportant. They do provide insight into the effectiveness and health of your marketing efforts. I am, however, suggesting that they are viewed with a degree of trepidation as regards business outcomes.
Heuristic 2: Avoid ‘Feel Good’ Marketing Metrics – at first
These include measuring what is simple, quick, and easy; Concentrating on quantity, not quality; Measuring effort, not outcomes; Focusing on efficiency instead of effectiveness and
Cost (vs. return) centred metrics. Focus on measuring what is meaningful, not what is available.
Heuristic 3: Focus on ‘Outcome’ Marketing Metrics
These include Marketing Qualified Leads (MQLs); Sales Qualified Leads (SQLs); Funnel conversion rates (Across sales stages); Brand awareness by customer engagement; Marketing spend per acquired customer and Return on marketing investment (By MQL, SQL, and revenue).