If you put a big chunk of the budget into your local marketing strategies, you’d want to know if your efforts have been successful. Marketing effectiveness tools serve to show if your strategy delivers the expected results. Check out the top techniques to measure how effective your campaign is!
The Importance of Measuring Marketing Effectiveness
A local marketing strategy could have several objectives. Most companies want to increase customers and profit, while some focus on boosting brand awareness. They organize different types of events for achieving business goals, such as finding new customers and partners and strengthening their reputation. Here is a quick overview of why measuring marketing effectiveness is important:
- You’ll learn which strategies work better than the others
- It ensures you can adjust your budget more efficiently
- You’ll improve conversion rates and boost sales
- Maximizing the effectiveness is the best way to increase ROI
How to Measure Marketing Effectiveness
The secret of a successful marketing strategy is to keep adjusting it until you find the perfect balance. Measuring the campaign’s effectiveness will tell you where to focus your efforts and how to adapt. Here are the main parameters to use when analyzing your marketing tactics!
Customer Acquisition Costs
If getting new clients is a vital marketing goal for your company, you want to focus on this parameter. The idea is to determine how much you invest in marketing efforts to get a single new customer. Before assessing this, it’s important to determine the total expenses to achieve this goal. Let’s say you analyze the previous month. You spent $5K in marketing but also invested $20K in overhead and salaries. During this time, you attracted 100 new customers. The math is the following:
($5K+$20K)/100=$250
It indicates you spend $250 to attract a new customer. If it turns out to be a loyal client or you sell expensive products, it could be a justified expense. The overall idea is to assess if the advertising campaign you are currently running delivers value for money. If you want to improve this measurement, you can focus on creating a helpful website. That includes detailed product descriptions and even web chats for personalized support. You shouldn’t forget classic methods like text messaging since they still feature an affordable marketing method.
Lead Sources and Lead Response Times
Lead source shows where the targeted customer or business associate first engaged with your company. Depending on your goals, you could assess where they first heard of your brand, but also when you established a contact. The easiest way to establish this is to ask a customer for a short post-purchase survey. It’s not too pushy, and you can even offer a small discount to motivate all customers to complete it. Professional tools can help track customers in different categories. You can divide them into Google searches, friend recommendations, social media, and other relevant categories. It’s easy to understand why learning about lead sources is critical. It shows where to focus marketing efforts. If you attract most customers via Instagram, boost the internet campaign. But if flyers give better results, don’t hesitate to improve that advertisement method.
The Importance of Lead Response Times
Marketing efforts led to the potential customer reaching out to your company. That’s where you take over, and it’s crucial to act fast. Most clients expect an instant response, and almost no one is willing to wait over a couple of hours. Your lead response times should be as fast as possible. Analyze where you get most messages and which interactions lead to conversions. Focus on the method where you have the most engagement with your customers. Also, be aware that responding to a phone call or text should be almost immediate, but it’s acceptable for a social media response to take a couple of hours. Make your job easier by using a professional tool that will gather all customer messages in one inbox.
Web Chat Conversion Rates
Adding a web chat platform to your website is an excellent way to improve customer communication. Many potential clients have questions about your services, but they don’t feel comfortable calling and don’t want to wait for an email response. That’s why sending a question via the chat function seems most suitable. You can analyze the conversion rate from web chats easily. Divide the total number of customers that bought something with the number of chats your agents had. For example, if you had 20 purchases from 200 discussions in a month, that’s a 10% conversion rate. If you have a high demand for chats, consider investing more in customer support.
Google Ratings
The Google My Business feature is vital for local marketing. Each business has a rating from one to five on Google, and your goal is to get it as high as possible. Most customers begin their search for your business online. Having a rating of over 4.5 can inspire trust with potential clients. You can improve Google ratings by asking customers to leave positive reviews. It doesn’t take longer than a minute, but you can motivate them with a modest freebie or discount.
Online VS In-Person Sales
Learning which method is more successful will tell you where to focus your marketing efforts. Are more customers buying via your website or coming to the store? Do they use the purchase option on the site but pick items up in the store? Client preferences depend on many factors, and you should adjust to them. Invest more into marketing and other aspects of their preferred purchasing method. Making payments easier is a common way to boost sales overall. You can add more options, such as mobile payments in stores, e-wallets, and crypto on the site, etc.