In our new five-part blog series, you’ll learn about the importance of attribution: choosing ad channels, defining company goals, aligning KPI’s with company objectives, managing customer touchpoints, and learning where your ad dollars are best spent for maximum impact.
It’s inspired by our latest eBook, Beyond Digital Marketing Attribution, and it’s designed to help you create an attribution strategy that drives your company’s key business goals. This is Part 2: The CMO’s Secret Advantage: Use Organizational Goals to Drive Attribution. Keep an eye out for future installments in the coming weeks.
Part 2: The CMO’s Secret Advantage: Use Organizational Goals to Drive Attribution
Three letters define the next stage in your attribution journey: K, P, and I.
Those are your Key Performance Indicators: the measurable actions that tell you whether your company is actually reaching its organizational goals. Every company’s most critical indicator, of course, is revenue, but there are many interim online marketing KPI’s out there that drive customers to you. Which ones are the most meaningful for your business? That’s what identifying organizational goals is all about.
Here’s what top CMO’s do to identify organizational goals prior to identifying the KPI’s they’ll use to measure success:
- Start with the end goal in mind. Define a measurable goal, and a time period over which you want to reach that goal. Example: “We want to increase holiday revenue by 10% over last year.” Consider this your Supreme KPI: the one measurement on which your company’s success is based.
- Break down the steps needed to reach that goal. Example: Increase brand awareness via nurture campaigns starting in August and September, offer special deals in late October and early November, and create daily flash sales to advertise via social media during one week in December.
- Choose the KPIs that will speak directly to the success of those steps.
When choosing your KPIs, remember the three words that make up their meaning. They’re KEY: they speak to the success of your organization. They measure PERFORMANCE: they can be quantified. Finally, they’re INDICATORS: they refer directly to a measurement that can predict future results.
Here’s the CMO’s top secret for deploying KPIs to measure company goals: They keep their KPIs to a minimum. In a world awash in data, it’s tempting to track every KPI under the sun, but chances are you can find the top few that will tell the story of your company’s mission and how your current ad strategy is helping you reach those goals…or not.
Which KPIs will work best for measuring your company’s goals? Here’s a partial list to get you started:
To measure the effectiveness of your website and/or company blog, consider measuring:
- Sources of referral traffic
- Number of pages visited
- Contact form conversion rates
To measure your social media effectiveness, consider measuring:
- Click-through rate
- Conversion rate
- Engagement rate
To measure the effectiveness of your online advertising campaigns, consider measuring:
- Average cost per click
- Average cost per revenue dollar generated
- Your Google AdWords Quality Score
Once you have your KPIs in place, choose your feeder metrics: performance measurements that indicate why your KPIs might be changing. For example, click-through rate for a new Facebook ad strategy might indicate why you’re generating more site traffic, and a new content marketing calendar that increases how often you publish new material might suggest why you’re seeing more site visitors on different days of the week—or even times of the day.
List the KPIs you’ve chosen, and the feeder metrics used to measure each of them. Presto! You now have a side-by-side picture of your current performance metrics. In the next blog installment, you’ll learn how to choose the technology tools that will help you quantify the success of each metric.
What’s next? Get Involved! Post a comment below to share your attribution secrets with your peers.
Click here to read about Step 3 of your attribution strategy—getting your technology ducks in a row to make measurement super-simple.
Get the whole playbook! Download our new e-book, Beyond Digital Marketing Attribution, to start crafting your attribution strategy right now