Using a third-party specialist marketing analytics tool will enable you to measure your effectiveness. In particular, when marketers reference effectiveness, understanding benchmarks is helpful.
Where am I sitting as an organization against my competitors? Because yes, you need to be effective in driving results but are we doing better than our competitors (or not).
This is useful nuance and context. Because hey, who doesn’t want to beat their competitors?
Technically you are going to need a few things in place
- A measurement tool (like Nudge)
- Capturing the right metrics
- Displaying them in a dashboard
The actual measurement could take place using a variety of tools, from a study of your audience, to direct observations from tracking pixels, to feedback tools.
The right tool will also guide you to the metrics they believe are helpful for understanding. And that’s where benchmarking is helpful, being able to benchmark your effectiveness against yourself, peers and industry. Often this forces an immediate reset or rethinking. If a competitor is doing 20% better, where and how can you improve?
Answering the strategic question – are we being effective?
From experience, this question is often also raised when there is a lack of understanding on the business results created from digital marketing activity. And answering that will help provide that clarity. That means you need to establish your attribution measurement, or rather be looking at marketing attribution.
That way you can articulate, we did X and we got Y. And next quarter here’s how we’re going to allocate our resources to improve on Y.
That’s a simple output but it takes work to get there.