Data is everything when it comes to tracking progress in the business. It is even more critical when you are dealing with marketing automation. This technology streamlines your marketing workflows and automates them so that it is possible to forget about it altogether. However, the moment you lose track of data, the organization and work progress become incapacitated. The market analytics work as a guide for the marketing campaigns and helps get an idea about the demands of the target audience. The figures are the key to identifying commensurate actions, finding out the gaps in sales plans, and taking the necessary steps to rectify them.
Marketing analytics, therefore, forms an integral part of the company’s daily operations.
They are forward moving and essential for making predictions about the future of the strategies involved. The analytics are a method of logically analyzing the business moves.
A survey shows that more than 56% of strong marketing teams bank heavily on marketing analytics to measure progress. Global statistics show that almost 60% of marketers worldwide using marketing analytics have improved their sales revenue by nearly 50%. So, the analytics help in logically analyzing marketing automation and making forward motion.
The success of your marketing automation efforts can be evaluated through a variety of metrics that offer reliable and meaningful data for analysis.
Metrics suggesting correct marketing automation
Some of the most important metrics that help understand the fruitfulness of marketing automation techniques include the following:
- Unsubscribes, open rate, and click-through rate
The most typical marketing automation function is personalizing emails sent to potential customers. Since so much effort is put into the marketing campaigns, it is also necessary to measure their success rate. The click-through rates, mail opening rates, and unsubscribes help in ratifying the same.
- Site traffic
The email campaigns’ main aim is to increase the amount of traffic to the site because it can finally lead to sales generation. A well-written email is also equally important because it will contain the links to the particular parts of the website from where potential customers can avail information. To measure the site traffic, you will have to measure the bounce rate, goal conversion, and how much time the visitor had spent.
- Sales accepted leads
These are leads which have been forwarded by the marketing to the sales department. It shows that both teams are working together and that a sound lead scoring system is present. A constant rise in sales accepted leads indicates that the marketing automation project is working fine. Suppose the sales team continues to receive leads generated by marketing. In that case, it means that both departments are working in tandem, and everything is fine.
- Conversion rate
The conversion rates are vital for both the marketing and sales teams. Comparing the number of visitors and how many of them get finally converted is essential for understanding the conversion rate and return on investment.
- Cost per customer
This is an interesting metric of analysis that helps estimate the cost incurred per lead. The conversion rate depends on how much each lead has been nurtured. Market automation facilitates lead nurturing and scoring techniques so that more conversions occur.
- Revenue generation
Revenue is the main reason for starting any business in the first place. More significant revenue generation by each customer ensures that marketing automation is working as per strategy.
What about KPIs?
On the other hand, KPIs or Key Performance Indicators are required for measuring how much you have achieved your goals.
So, businesses must employ marketing automation to understand if the strategy is making any progress in revenue and lead generation. Now, four kinds of indicators also represent the steps of conversion.
- Indicators of acquisition: getting the contacts
- Indicators of engagement: contact with the brand
- Conversion: pushing the connection to become a customer
- Retention: the loyalty of a contact
Here’s how to understand and measure the KPIs.
The number of contacts
As the name implies, it is necessary to count your active and inactive connections. The inactive ones can be either removed or reactivated with automation. Engaged customers will become actual customers.
Rate of prospective qualification
The idea is to understand how many prospective customers will turn into actual customers. You will need to measure how many simple contacts have become prospective ones and the potential ones to real buyers.
Engagement with your consumers is essential because it offers you the opportunity to get more information about them.
This can be deciphered through the number of interactions generated by campaigns against your total engaged contacts.
This rate can be calculated by the number of clicks on the call-to-action against the number of times it was displayed to customers. You need to work on the call-to-action if the click rate is low.
Rate of form filling
Forms are useful for conversion. The rate can be calculated by how many forms you have against the number of times it was displayed.
The conversion rate from actual contact to potentials ones and then the potential to actual ones help understand the success rate of the marketing automation strategy. The measurement depends on the whole sales cycle of the company.
Objective-based conversion rate
This can be measured at the end of each sequence of the marketing automation strategy. For instance, collecting email addresses is a sequence. You will need the conversion rate for every such sequence.
Return on investment
This is the ultimate retention indicator. If your sales have increased compared to the previous quarter, you have earned a return on investment.
Many KPIs and analytics are available, but you have to pick the ones that match your strategy. Choose wisely because too many or too little might limit your performance.