Every marketing strategy and activity must contribute to your business’ growth. If they don’t, you’ll need to review your marketing playbook. Beyond creativity and efficiency marketing makes a tangible contribution to revenue and profitability – which is why an accounting and business advisory firm like Propeller is invested in helping you get your marketing right!

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1. How much is marketing contributing to revenue?

It’s the penultimate metric. As mentioned at the outset, unless marketing is adding dollars to the business, it is best to cast it aside or reviewed. With every marketing effort, there should be an associated incremental value to the business’ revenue and profitability. However, having said that, there are aspects of a business’ well-being that cannot be immediately measured in dollar terms. They include brand awareness and recognition as well as the target audience perceptions of the brand. It takes time before these are translated into dollar terms.

2. How effectively is marketing generating leads?

One of the primary goals of marketing is lead generation. Your pipeline should be flowing freely. And it needs to grow over time as well with prospects. Furthermore, it should be generating what is commonly called marketing qualified leads. It is pointless to generate irrelevant or invalid leads, or aim to increase your social media followers if that’s not translating to real business activity for you.

If this happens, it only goes to show that marketing has been hitting at the wrong target or delivering messages that do not resonate with the target audience.

3. How effective is your conversion rate?

Your conversion rates should be high if all your marketing delivers quality leads. Obviously, there are other factors at play: for example if marketing is hitting prospects at the right stage of their journey with you, or if you’re using the right channel for the right target audience. A high conversion rate is usually the result of the right message delivered to the right person at the right time.

We’ve shared the 3 most common metrics to measure marketing’s effectiveness. But there’s so much more to marketing, and business. Follow us on Facebook for upcoming events and webinars where we’ll guide you through resources and tips for business growth and success.