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Hello from Level Agency! Today let's talk measurement.
Here are four tips to make sure you're setting the right KPIs
for your campaign.
I'm Patrick Van Gorder. I'm senior Vice President here at Level Agency,
and we're going to talk about KPIs or "Key Performance Indicators."
More specifically how to choose the right ones for your campaign.
Let's get started. Tip #1: Choose KPIs
that are appropriate for the campaign's
position in the sales funnel.
Now we're a direct response agency which means
that we're not typically that interested in things like clicks and impressions.
When we can we want to get down to
sales and revenue. When a campaign's primary goal
is awareness or reach, we'll look at things like
impressions, clicks, cost-per-click,
click-through-rate, even video completions
to tell us how well our campaign is resonating
with the target audience. For example, a campaign
announcing a new product might not produce
any direct sales. So we'll look at things like
click-through-rate, cost-per-click, and impression reach
to tell us if our awareness
is doing its job.
These metrics become basically meaningless for lower funnel campaigns.
For campaigns like tradename search or retargeting
we care a lot less about things like click-through-rate and cost-per-click,
and a lot more about things like conversion rate
and cost-per-sale. This is because
we can afford to pay a lot more for a click
if it's someone who's actively searching for my brand,
or who is already engaged with a product website.
Tip #2: Be aware of the limitations in your own data structure.
As we've discussed in the past,
Level Agency uses the client's system of record
whenever possible for setting KPIs.
This is great, when the client's system of record works like it should.
When the CRM and marketing automation platform
and the advertising platforms themselves
all talk eachother and pass information between one another,
but that's not always the case. If your systems aren't talking
to eachother, if we're not passing UTM parameters
or other advertising identifiers from the advertising
into the sales platform or CRM,
We can't use those metrics as KPIs.
That's why it's so important to setup your tracking so it's doing that.
If you're not storing information from your advertising campaigns
in your CRM, in your sales platform,
or in your other advertising system of record, you should be.
We might do a video on this topic later, but in the meantime
talk to your agency partner or your internal marketing team
about how you can store things like UTM parameters
in your system of record.
Tip #3: Choose KPIs that operate on a
reasonable time scale.
Even if your campaign goals
are tied to revenue or other direct sales KPI,
if you have a long sales cycle,
6, 8, 12 months, it can be really hard
to use those metrics to optimize an advertising campaign.
My clients with sales cycles like that,
often in B2B or high value B2C, can't aford
to wait 6 months, 8 months, or 12 months
to optimize a campaign. So we have to go up funnel
to find directional KPI that will tell us
what the sales
will likely be in 6 months, 8 months, or 12 months.
If this described your business, look for leading indicators
of future pipeline value. Things like opportunities,
sales-qualified leads,
or marketing qualified leads. Think of those as your optimization KPI.
And finally Tip #4: Evaluate and Optimize.
Once you've established good KPIs
and benchmarks or targets that tell you
how you're doing against each of those KPIs,
it's time to setup a regular reporting schedule.
Remember, KPIs are only good if they're useful.
This means that you need to track your progress against them,
and the actions that are coming out of those meetings
on a consistent basis
Are you hitting your benchmarks? Are you hitting your targets?
Is the forecast you put together as part of your marketing planning
What's actually happening out there now that the rubber is hitting the road?
I would suggest meeting weekly or bi-weekly
with key stakeholders in the marketing project
and then distributing the report and the action items from that meeting
to a larger group of stakeholders.
That lets you make sure that the message and the actions that come
out of those meetings are distributed to the right people
in the organizationa and in your partner organization.
That's it, those are 4 tips to choose the right KPIs,
and then use the right KPIs to make your marketing
campaigns more effective.
My name's Patrick Van Gorder. I'm Senior Vice President here at Level Agency. Thanks for watching!
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