Know Your Digital Dashboard
Steering Your Marketing Spend With Data
In your marketing efforts, the endgame is attracting and retaining loyal customers. In your marketing mix, your online marketing is your most critical initiative. To be effective, you need a way to measure the value of this effort.
The digital snapshot we recommend is what we call your Conversion Value Dashboard. This includes three numbers: your Value by Lead, Value by Website User, and Value by Email Respondent.
These three numbers will tell the story of how you’re doing in your online marketing process and where you need to focus to improve. Here’s what we mean by those numbers.
Value by Lead
Every sale has a lead source. Over time, you will discover your top five or six lead sources as a firm.
Your first goal is to develop an average value per lead.
We recommend using all leads as your baseline…then dividing the total revenue by your total leads. That will give you the value by lead for all of your sales. This helps you understand the value you can place as a firm on each lead, and how to tie your marketing spend to this value per lead.
Then, take a look at each lead source. Lead Sources, for example, might include Websites, Conferences, Referrals, etc. Divide the amount of your total revenue related to that particular lead source by the number of your leads related to that source. This will give you your Value by Lead for the various Sources.
As you track these, you’ll be able to see which sources generate the most income. You can then focus your efforts on increasing business by that lead source.
Value by Website User
You can now measure the value of activity on your website by relating it back to Leads. There will be a ratio of users to Leads. It could be 10:1 or 30:1 or 300:1. Whatever it is, this ratio becomes a benchmark for you.
You can now calculate what number of Leads, on average, you can expect from the website if you increase traffic to your site. Then, you can see which activities on your site—blogs, articles, webinars, and videos—are attracting the most users. Your Google analytics will also indicate the number of users by page.
You can measure the expected return on your website marketing spend as you evaluate this spend against the value you will get back in increased users and, in turn, new leads.
Value by Email Respondents
The value by email respondents is the value of those who respond to one of your outbound marketing emails, then click through to your website. By clicking through, they have now become a user.
By tracking click-through respondents, you not only know specifically who came to your website; you also know what initiative drew them there—your email. So, you can now value this effort, tying it back to users and Lead value.
Steering Your Marketing by the Data
By monitoring these three numbers, you can value your online marketing based on response and overall contribution to revenue. This is your Return on Investment (ROI) for online marketing efforts. Of course, it’s important to remember the formula E + N = M. Emotion + Numbers = Momentum. You must connect emotionally with your customer through your brand; then you will be able to stimulate responses that you can measure as numbers to demonstrate your momentum.
If you’d like some help developing your conversion value dashboard, give us a call. We would be delighted to help you #MoveAhead.