Measurement Before Marketing
Measuring What's Easy vs. What Matters
After this week’s digital media lecture, I learned that a measurement model is essential in digital marketing, as it ensures the advertising efforts are aligned with the business objectives. This is evaluated using meaningful and constantly updated data based off of evidence rather than assumptions. In the world of digital marketing, it can be tempting to start the process early by posting content and creating advertisements. But without having a measurement model in place even the most creative digital strategies can lose their direction.
Metrics, KPIs, and Real Outcomes
One of the most common challenges we see businesses face is prioritizing metrics that are easy to collect rather than prioritizing the metrics that actually matter to their marketing plan. Tools like Google Analytics make it easy to track page view, clicks, impressions, and sessions. While it does provide us with useful numbers it shouldn’t be looked at as success of its own. These numbers are indicators of other factors that we need to dive deeper into.
As Seth Godin said, “Measurement is fabulous. Unless you’re busy measuring what’s easy to measure as opposed to what’s important”. This quote perfectly sums up the issue. A brand might celebrate high traffic to their website or content that is going viral, but if none of those numbers are converting into sales, leads, or loyalty than it’s all just noise. Without context easy metrics can distract marketers from their real business goals.
Better Decisions, Not Just Reports
Being able to understand the differences between metrics, KPIs, and business outcomes is essential for effective measurement. Metrics are basic data points that describe activity, this is seen in the form of users, sessions, or video views. KPIs, known as key performance indicators, are the selected metrics that directly reflect progress towards specific goals. And lastly, business outcomes represent the actual impact on the organization, seen through an increase in sales, more retention, brand loyalty, etc. Measurement models are what connect everyday metrics to KPIs and then to outcomes so that marketers are able to explain the impact rather than just report the numbers. In a piece published by the Harvard Business School, Kate Gibson stated, “It’s crucial to note that if you don’t monitor KPIs early in the marketing funnel, it can be hard to determine if your efforts contributed to your campaign’s success or failure” (https://online.hbs.edu/blog/post/marketing-kpis ). If you don’t know where you went right/wrong within your campaign, then moving forward will be done blindly.
Why Measurement Comes First
Clear measurement models force marketers to ask the right questions before launching a campaign. Why does the business exist? What problem are we trying to solve? What does success actually look like? After having the answers to these marketers can choose KPIs that guide in their decision making. This matters because data is only valuable if it leads to action. As W. Edwards Deming said, “Without data, you’re just another person with an opinion”. With a strong model teams can analyze performance, adjust their tactics, and continuously improve until they get their desired results. It’s best said in an article posted by the Agile Brand Guide, “Without a sound marketing measurement framework, businesses risk marketing in the dark, entangling themselves in complex, multi-channel operations without measurable results. However, with MMF, businesses can confidently and efficiently position themselves for success” (https://agilebrandguide.com/the-importance-of-a-marketing-measurement-framework/?srsltid=AfmBOorx6VzQdaRKTH-5r51aSF0Lput_pFwor0_Y0j9hIzUCDbNeatmL ).
At the end of the day, a measurement model is essential because it makes marketing intentional. It ensures that every dollar spent is connecting back to the business objective. It ensures data is being used for improvement, not just reporting. In a digital world with endless numbers the brands that "win" are the ones that measure with purpose, not convenience.