Marketing raises product awareness, builds brand credibility, and establishes trust between customer and seller.
An effective marketing strategy maximizes customer retention, brand loyalty, & ultimately Return On Investment (ROI). Fundamentals of knowing whether or not your marketing strategy is working relies on managing critical data points specific to what’s most important to the growth of your company.
Below, we’ll take a look at a few specifics to better understand how you can know with certainty that your marketing strategy is actually effective.
How To Know If Your Marketing Strategy Is Working?
Based on this fundamental understanding of the purpose of marketing, a successful marketing strategy is one that ultimately increases your revenue with a positive ROI.
Marketing strategies convert your limited resources into increased sales.
A well-planned marketing strategy can give you a competitive edge while driving the reach and recognizability of your brand’s image and credibility in delivering quality goods.
One key first step in establishing an effective marketing strategy is to explicitly define your outcomes in terms of the results you want to achieve.
A common strategy to get a well-rounded pulse on the market is to outline your goals and competitor research by performing a detailed SWOT (strengths, weaknesses, opportunities, and threats) analysis.
After understanding the territory, you can devise a more strategic marketing plan that works for you, based on the feedback from the market analysis, to bring the best ongoing outcomes and results.
Ultimately, you need to define what a working marketing strategy means for you and your business.
Once you clearly and objectively outline the targets you want to reach with your marketing strategy, the next steps are to keep track of your progress.
By keeping track of key data points from fresh marketing strategies, you compare your current growth figures to metrics from previous marketing strategies to understand what’s working most effectively.
Pisgah Peaks Ventures (PPV) offers across-the-board marketing strategy services to help your business with branding, digital marketing, content, SEO, and much more.
How Do You Determine Whether A Marketing Strategy Has Been Successful Or Not?
The success of a marketing strategy is what you define it to be.
However, with the help of some data analytics, you can see the degree of success of your marketing campaign.
Usually, keeping track of certain indicators, most commonly known as Key Performance Indicators (KPI), helps in determining whether a marketing strategy is working or not.
As per the Corporate Finance Institute (CFI), KPIs are measurable metrics that are a tell-tale about your company’s performance and progress.
There are numerous potential KPIs, each of which serves a different purpose and assesses different criteria based on the results you define in your outcome.
The KPIs you measure and manage will depend on your marketing objectives.
If your goal is to increase the number of visitors to your website, then collecting data about website traffic is a top priority.
To determine if a marketing strategy was effective, the critical first step is to clearly define the results you want to achieve.
After you have identified the results you want and the KPIs to measure, creating a marketing plan and implementing the strategy will yield the data on the success of the marketing strategy.
Why Do We Need To Evaluate And Control Your Marketing Efforts?
By evaluating current marketing strategies, you can better plan future marketing and measure your success.
Other reasons for evaluating your marketing efforts include:
- Determining Your Bottom Line
Marketing effort measurement helps a business to calculate its bottom line, that is, the net income after all expenditures and incomes have been tallied, according to Investopedia.
Consequently, it helps you to budget for the next fiscal year and address your business needs.
This way, you can aim to generate growth and improve your top line while reducing costs.
- Understand What Works For You
It is always good to have a comparison of the different marketing strategies that work for you.
In doing so, marketers can improve their marketing effort and yield a higher ROI.
Additionally, you can also mix and match multiple marketing strategies that work to achieve desirable results more quickly and efficiently.
- Synergize Your Company
Marketing is not only about creating brand awareness but also strengthening relationships within an organization, whether they are managers or customers.
An important part of evaluating marketing strategies is to ensure that your stakeholders’ interests are being met.
This will create a synergetic atmosphere within the business and boost cooperation.
Furthermore, evaluating marketing efforts ensures your business is progressing in the long term and making sure various business & marketing strategies are being properly implemented to meet your objectives.
How Will You Know If Your Marketing Plan Was A Success?
Marketing performance metrics paint a clear view of the success of your marketing plan.
The data obtained can be reviewed by managers and directors to measure the success of the marketing strategy.
Key Performance Indicators are a critical area to begin measuring the success and overall performance of your marketing efforts.
While data on conversion rates and customer retention gauge short-term success, metrics such as Sales Qualified Leads (SQL) and Marketing Qualified Leads (MQL) measures one point of success over an ongoing timeframe.
Besides KPIs, there is also a whole new set of metrics that focus solely on marketing performance.
Return on Marketing Investment (ROMI) is a term that has been recently added to the business jargon.
ROMI is a metric used to investigate the extent to which the money spent on marketing drives more profit.
Moreover, tracking growth metrics that are relevant to your marketing strategy is critical.
In some instances, when investing in web marketing, a potential KPI to measure lead generation might be more important than website visits.
Final Thoughts On Knowing If Your Marketing Strategy Is Working
The success of a marketing plan ultimately boils down to your customers taking actions that are profitable to the long-term success of your company.
By tracking KPIs and comparing them against your own objectives will help you determine whether your marketing plan was a success and how best to fine-tune future marketing strategies.
If analyzing a digital marketing strategy seems daunting for you, contact Pisgah Peaks Ventures to receive a full marketing strategy audit to help you understand the different layers of what success will look like for your situation.