3 key metrics to your actual ROI
Can you think of a creation you’ve made that you were really proud of? Maybe it was something you made as a kid, something you created early in your career, or even something you did yesterday. I love analyzing data and I remember creating this beautiful dashboard that captured all the “important” KPI’s of our business and then … it fell flat.
Why?
Analysis paralysis. The last time I checked, there were over 60 metrics for marketing alone. Just because you can measure it, doesn’t mean you should. With too many metrics, you can lose sight of the key objectives and they become counterproductive and drain resources.
Imagine that you had to pay someone $100,000 to pull each metric. I’m guessing you’d choose fewer, high priority indicators that directly influence your marketing decisions and optimize your efforts.
“If the statistics are boring, you’ve got the wrong numbers.” - Edward Tufte
The metrics that are right for your business will depend on your unique business goals, industry, and the external factors that affect you. These 3 metrics will provide insights into your actual ROI.
1. Market position. This one is my favourite. Whether you’ve been in business for a day or a decade, it’s exciting to see your growth and how your efforts stack up against the competition. Benchmarking gives you a clear picture of where you’re positioned and helps you continually optimize your strategic direction.
2. Leading indicators. Here is where the real effort comes in. Leading indicators are the initiatives within your control that directly drive the results you are striving for. For example, if you wanted to shed a few pounds, your exercise routine and calorie intake are things you control and they have a direct impact on the success or failure of that goal. It’s best to choose indicators that guide proactive actions that can nudge a prospect to the next level of the sales funnel. Some of the most common include your number of leads, brand awareness, engagement, click-through rates and website traffic.
3. Lagging indicators. These are the results everyone wants to see. Here is where we “step on the scale” and find out if our efforts are paying off. We either celebrate or we make mid-course corrections. Common examples of lagging indicator metrics include client numbers and conversions, retention, sales revenue and profit margins.
What’s next? Re-evaluate your metrics to make sure they reflect your goals, help you understand your performance, and equip you to make informed decisions. And be sure to choose metrics that are relevant, high priority and that you’re excited to see!
Let’s tell your story and meet your objectives. Contact one of our content strategists today at letscreate@undercover-creators.com!
Come on back next week and we’ll reveal the final tip from our “6 Strategies to Kickstart Your Year”, Surefire way to expand your reach. We’ll show you how to multiply your visibility and leverage the engagement and loyalty of an influencer audience.