Why Are Marketing Metrics Important?
Marketing metrics are important because they allow marketers to have a solid understanding of how their marketing activities are performing. These metrics are sets of numbers that marketers typically track to give them a sense of whether marketing activities are working or not. Marketing metrics also give marketing departments direction on what activities should be expanded or adjusted in order to achieve maximum ROI.
Depending on their specific role, marketers will track different marketing metrics, from website traffic to qualified leads. Marketers will then need to use marketing analytics to determine what those marketing metrics mean, what trends they indicate, and what actions they should take to achieve their marketing objectives and goals.
Benefits of measuring marketing metrics
Measuring these metrics can help marketing departments in a few key ways that give a clear indication why marketing metrics are important:
- Metrics can show success: Marketing can be slightly unpredictable, but rather than relying on trial and error to demonstrate success, marketers can use metrics to show whether a marketing campaign has been successful or not.
- Metrics can help supercharge ROI: Marketers have to be as concerned with ROI as they are with their bottom line. Marketing metrics can show which activities and campaigns have contributed directly to the bottom line and can help marketers determine activities that present the greatest ROI.
- Metrics can help you justify marketing spend: When making budgets, marketing metrics can help establish the marketing channels and activities that deserve more or less spend, based on past performance. This information can be passed on to stakeholders and executives when it comes time to justify budget increase and quantify marketing contributions to the organization as a whole.
- Metrics can give you valuable data: Without marketing metrics, your marketing department would need to rely on anecdotal evidence to make marketing decisions. By tracking the right data, marketers can instead use metrics and analytics to inform marketing decisions more effectively.
- Marketing metrics provide key customer insights: Marketing metrics can give you important information about your potential customers, their habits and behaviors, the right channels to contact them with, and the messaging that works best to convert them into paying customers.
Keep in mind that a single marketing department could track tens or hundreds of marketing metrics in order to reap these key benefits. Knowing which are the most important metrics to track can give marketers a head start when they’re beginning to use metrics and analytics to inform their marketing activities and strategy.