Pat yourself on the back if you measure the impact of your marketing in a scientific way. Learning how to measure what you’re doing, the impact you’re having, and the sales you’re generating is a critical part of the marketing process and profession.
It may not be as outwardly glorious as the artistic side of marketing, but it is what makes marketing a science. It’s what allows us to optimize what we do in such a way that we can grow companies without wasting money.
But this one truth is important for all those measuring their marketing effectiveness: what you measure matters.
Marketers seem to be constantly searching for the one key metric. If we can only identify that one thing that tells us whether something is working or not, our jobs would be so much simpler.
But the truth is, success or failure are only determined by looking at a combination of metrics. Whether you’re looking at conversion rate, cost per conversion, average sale value, total sales, profit or something else entirely, it’s never going to tell you the full story. Only by combining several metrics into one report will you truly get a holistic look at your company’s, or campaign’s performance.
What you measure matters, because if you’re measuring the wrong thing, you’ll make decisions based on incorrect results. Just because conversion rate is higher, doesn’t mean what you’re doing is working.
So the message is this, don’t fall in love with one metric, or spend your time chasing that one holy metric that will save your business. It doesn’t exist. You must find the right set of metrics that will help you manage your business and always take a more holistic approach.