Controls to measure effectiveness of marketing campaigns

Here are some controls that businesses can use to measure success / effectiveness of their campaigns.

Measure customer satisfaction. If customers are satisfied, they will buy again from your business. Customers feedback, reviews are some of the ways to know what the customer expects.

Return on Investment measures the sales revenue a campaign brings on every dollar spent. For example, if a company spent $1,000 on a campaign that generated $5,000 in sales, the company’s ROI is $4,000 or 400%.

Incremental Sales is another measure that reveals the effectiveness of marketing campaigns in generating sales, and are a great way to compare your marketing efforts. It measures the contribution of marketing efforts toward the sales numbers. So, if the company’s sales for the month were $500,000, the campaign from above (that generated $5,000 in sales) would result in 1% of Giordano’s total sales.

Customer Lifetime Value (CLV) measures the lifetime value of customers. It can be calculated using the formula: “average sale per customer” multiplied by “average number of times a customer buys per year” multiplied by “average retention time in years for a typical customer. While gathering this data is time-consuming, by calculating the CLV, a business can see which of their marketing efforts generate their best customers.

Example of controls to measure effectiveness of their campaigns.

Quantified objectives (State each quantified objective and its time period), Means of measuring (Sales analysis; number of responses; surveys), Frequency of measurement (Daily; weekly; monthly; quarterly; annually?), Accountability (Who does it?), Cost (How much does it cost to measure?), Action (Who needs be alerted to if significant variances are found?).

• Increase ROI by 200@ over the next 3 months, Sales analysis, Monthly, Marketing team, Need to know amount spent and sales generated due to the amount spent, Management
• Increase Sales by 1% over the next 3 months, Sales analysis, Monthly, Marketing team, Need to know amount spent and increase in sales due to the amount spent, Management
• Increase Social media engagement by 10 percent over the next 3 months, number of responses, Weekly, Digital Marketing team, Need to know Total Followers and the number of likes, comments and shares generated by them, Management
• Reduce the Poor rating to under 2% in Customer Satisfaction score over the next 3 months, surveys, Weekly, Customer support, Need to know the Customer Satisfaction Score (CSAT) of customers, Management

Bibliography / References

Jonathan Cronstedt (2018) ROI: What Is It, Formula & 5 Ways To Measure Your Marketing ROI. [Online]. Available at https://medium.com/@jcron_89878/roi-what-is-it-formula-5-ways-to-measure-your-marketing-roi-9e67903e9cbf

Eddie Shleyner (2019) 19 Social Media Metrics That Really Matter—And How to Track Them [Online]. Available at https://blog.hootsuite.com/social-media-metrics

Alex Birkett (2019) How to Measure Customer Satisfaction in 8 Simple Steps [Online]. Available at https://blog.hubspot.com/service/how-to-measure-customer-satisfaction

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