If you want to increase the effectiveness of your marketing strategy, you need to frequently track and measure your progress. Then adjust when it’s needed. One reason so many marketers struggle measuring their results is because they have trouble pinpointing exactly what needs to be measured. You need to understand your key performance indicators (KPIs) and have an effective goal-setting strategy. By understanding this, you’ll be able to break down the numbers and know what you need to change.
Don’t overfocus on lag metrics
Let’s say that one of your long term goals is to double the total revenue of your business over the next three years. You might tie this goal to metrics like revenue and sales of product X. However, these are lag metrics, which will happen later on as a result of your efforts. These are KPIs of your marketing success, but make sure not to focus too much on lag metrics with your marketing campaigns. For every lagging performance indicator for a given goal, there is also a lead measurement. Focus on lead measurements to improve your end results.
Lead metrics or lead indicators are KPIs you can use to evaluate the progress you’re making towards hitting goals. Goals that are ultimately defined by lagging metrics. The value of this is that you can see much sooner if you are on track to achieve the goals set, or if you need to pivot and adjust as needed. Your lag metrics are likely to be tied to your marketing goals. While your lead metrics will often correspond with your objectives – the stepping stones to your goals, the actual metrics you choose to define your marketing success will depend on the type of business you are running.
Define your goals
You need to define your goals and objectives needed to reach those goals. Along with identifying the lagging and leading KPI”s, make sure to only pick 2-3 lead measurements that you feel will make a significant impact on your lag measurements and track those constantly.