May 09 2023
4 Steps to Digital Marketing Measurement
Digital marketing measurement can be one of the biggest challenges for a business. With so much to measure, how do you focus on what matters? There are four steps to effectively measuring your digital marketing efforts: Start with Strategy, Set KPIs, Create Benchmarks, and Report Regularly.
START WITH STRATEGY
Strong measurement starts with strategy. If you don’t know what you want to achieve, you can’t measure what matters. Your strategy should guide your metrics.
For example, even with a Facebook execution, your metrics and KPIs will be different depending on your objective. Your execution and metrics should line up based on your strategy and what you want to achieve for your business.
KPIs – Key Performance Indicator – are commonly used to judge performance in digital marketing (and in other marketing as well).
The idea is that since you typically can’t measure your end goal (sales, donations, etc.) and specifically attribute them to one activity, you use a KPI. Which is a metric that indicates whether your efforts are achieving your goals.
A benchmark is a way to understand if your digital marketing is performing well relative to a set standard or benchmark. For example, you may have an open rate on your email of 10%- is this good? Should you be satisfied? What does good look like in digital marketing?
Benchmarks are helpful to answer whether we are doing well with our digital marketing efforts.
Regular reporting is an important part of your measurement plan. Be sure that your report drives the focus towards the KPIs that matter most, but also include measurements and other information to show why. Most businesses report on a monthly basis, but based on your investment, you may want weekly or quarterly reports.
Check out our FREE action planner to help you define your strategy.
Questions to Ask Yourself
- What KPIs can you use to measure your business impact from digital?
- Do you have Quality, Quantity and Cost KPIs?
- What benchmarks can indicate your success?
- What is your plan for reporting?
This is an excerpt of Krista Neher’s best-selling book, “Digital Marketing That Actually Works”. You can find this and more books at Boot Camp Digital
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