Choosing the right KPIs to measure both marketing efforts and overall business success has always been important. Business KPIs can either be hard or soft. Hard metrics such as sales, footfall and traffic to a website are ultimately what a marketing manager is tasked with moving but soft metrics have their place in any robust measurement strategy as well. Understanding the value of your brand through brand tracking measures such as awareness, consideration and purchase intent can be the key to unlocking extensive long term growth.
It goes without saying that the main measure of the success of media should ultimately be driving growth in the business. Be that increasing sales volume and revenue, generating more leads or getting more customers through the door. Any CFO will question the investment in advertising if it is not leading to business growth. It’s very easy these days to get caught up in click through rates, likes and retweets but if your media strategy isn’t delivering growth in your business you’ve got a problem. The, some may say disastrous, shift of Pepsi to a very social media heavy strategy a few years back is testament to this. Choosing to measure the metrics that represent growth in your business is important.
Brand. Any worthwhile strategist will tell you the importance of having a strong brand. Advertising has always had a double edged effect. Spend £10m on Brand TV and you’d expect to get a decent uplift in short term sales and return on your investment. You would also hope the mass reach generated by the channel is building awareness of your brand, moving consumers to consider and eventually getting them to purchase whatever it is your business is selling. Building your brand may not always deliver right now but ensuring growth in the future is a very savvy approach to business. We’ve proven this relationship for numerous clients over the years. Understanding the dynamics of your purchase funnel and where you currently sit within that is crucial. This area is also the main benefit of social media. Tapping into social listening can be an eye opener to what the average Joe is saying about your brand.
Choosing the right KPIs to measure the success of your media against is only the first hurdle. The second is employing a robust measurement strategy across each of these KPIs to understand their underlying drivers. As part of the broader move to systems thinking within MediaCom, Business Science has been employing a holistic measurement approach across a number of clients to try and understand the drivers of each component of their systems. Whether this is looking at how increased web traffic leads to improved physical in-store sales or understanding the interactions between different digital media touchpoints through attribution modelling, having a clear understanding of how your system works is crucial in the modern, connected world.
Choose your KPIs wisely. Measure them properly.