how to measure the effects of social media programs. One expert suggests that marketers measure social media effects through engagement, retention, and awareness levels rather than in monetary terms. The key is to clearly define business, marketing, and consumer objectives; however, this is often harder than it seems. “Often marketers will say, ‘I want to be on Facebook. I want to be on Twitter.’ These aren’t objectives as much as they are tactics—objectives need to be measurable and achievable. For example, a marketing objective would be to improve the usability of the homepage to ultimately increase [sales] conversion.”18There are many tools available to assist marketers with measuring and analyzing their marketing activities. Google Analytics, for example, is afree software tool that helps marketers and website owners understandwho is coming to their website, what they are doing there, and how they can use that information to optimize their online activities. It tracks details such as which pages on the website visitors land on, howmuch time they spend on each page, and which links they click on—and collects all that data as sets of numbers, or metrics. But numbers and metrics by themselves have no meaning; they become usable marketing information only through analysis—and that’s where tools such as Google Analytics come in.
ncreasingly, however, beyond standard performance measures, marketers are using customer-centred measures of marketing impact, such as customer acquisition, customer retention, customer lifetime value, and customer equity. These measures capture not just current marketing performance but also future performance resulting from stronger customer relationships. Figure 2.9 illustrates marketing expenditures as investments that produce returns in the form of more profitable customer relationships.19 Marketing investments result in improved customer value and satisfaction, which increase customer attraction and retention. This in turn increases individual customer lifetime values and the firm’s overall customer equity. Increased customer equity, in relation to the cost of the marketing investments, determines return on marketing investment.Regardless of how it’s defined or measured, marketing ROI is here to stay, and the modern marketing manager must learn how to use marketing metrics and analytics. In today’s super-connected world, with seemingly limitless amounts of data available to marketers, the ability to measure marketing activities and analyze marketing
information is the key to understanding customer behaviour and being able to predict how target customers will react to the company’s marketing offerings. As one marketer puts it, marketers “have got to know how to count.
- Spring '15
- Marketing, SBUs