I’ll spare you the Drucker quote, and just say that marketing metrics are important.
But I also want to caution you to keep 3 things in mind:
- Not everything is (easily) translatable to business value, but that doesn’t mean you shouldn’t do it.
- Metrics need context, especially if you want to base decisions on them.
- Metrics aren’t created equal, and their relationships to each other need to be kept in mind.
Not everything is (easily) translatable to business value
Think about Brand metrics
While we measure brand sentiment, recognition, mentions, etc., the direct business value may seem unclear or only apparent when you’re at the ends of the spectrum — either your brand is weak and means nothing to buyers, or its strong enough that people buy because of it. Everything in between isn’t obviously moving (or stopping) the needle.
But are you NOT going to try building a brand? Of course not. While you can’t necessarily see the impact yet, you know that brands matter & that brand building can pay off.
So what do you do? You don’t stop, even though you can’t see the value in your P&L yet. You keep working on brand building activities. You keep monitoring and identify correlations.
Metrics need context
For example, consider your metrics after a site redesign.
Whether you see initial improvements in performance or not, you can’t call something a success or failure without refining/filtering to make accurate comparisons.
You have to:
- Compare to prior years
- Identify outliers or random events that might have hurt past performance (remember the last AWS outages?)
- Filter out campaigns or channels that didn’t exist before, or that have drastically changed
- Be sure that improving one metric didn’t hurt another one.
If we don’t do this work, then we risk repeatedly making bad decisions. Why repeatedly? Because your first incorrect premise and resultant decisions will cascade and skew everything that comes after.
Many new marketers get this wrong because they want to show impact & will prematurely mark something as a win. The pain comes when they look at things 6 months later and see that key metrics are actually trending the wrong way.
Avoid issues around this by having a measurement framework that includes recurring historical analysis and normalized values.
Metrics aren’t created equal
Think about engagement metrics.
Pageviews, time on site, page scroll depth. These are cool and we like to look at them to assess how well people like our content.
But these metrics are usually only important as they relate to conversion metrics.
If you’re doing lead gen or ecom, then “weak” numbers on these metrics might not be bad at all:
- A good landing page might have really short visit durations, but great conversion rates
- Declining pageviews or low pages/visit might mean your site is efficiently driving people to key content.
- Minimal scrolling can mean the right piece of info for the audience is easily spotted on the page.
I’m not saying that engagement or dwell-time metrics are never important, but deciding to fix one of them without thinking about the conversion metrics is a surefire way to screw up your site.
Rather than focusing on these metrics. Start with conversions and work back:
- What’s the difference in average pages/visit between converters and non-converters?
- What percentage of visitors are seeing your first call to action?
- [By campaign and/or channel] what’s the bounce rate for new visitors vs returning?
- Does bounce rate decrease when I change the headline or hero image?
The key idea is to put these in the context of the business and then decide if they need work.
Do Your Metrics Matter?
There is a limit to generalization, so nothing written, especially my thoughts on specific metrics, should be taken as hard rules.
That said, we should all strive to look at the metrics that drive our decisions & honestly speak to their value. If you can’t, then there is an underlying problem in either strategy or process that you need to address.