Updated: May 26
Unit 08 Measuring the effectiveness of digital promotional activity for business (H/507/4160)
NCFE Level 2 Award in Digital Promotion for Business (601/6671/X)
NCFE Level 2 Certificate in Digital Promotion for Business (601/6673/3)
· Understand the process for measuring the effectiveness of digital promotional activities
· How to measure effectiveness of Digital promotion Activity for Business?
Rita runs a wellness centre where she provides alternative health therapies along with wellness trainings like Yoga and more. She runs her centre from a small, ergonomically designed space in her garage. Rita has been extensively utilising digital marketing techniques to meet various business objectives. While she’s been maintaining an active business profile on social media for spreading awareness about her business, she’s been keeping in touch with new and existing customers through email communication and other modes. Her sleek & user-friendly website also helps her in the process. However, over the period of time, digital marketing processes have added huge expenses to her balance sheet. Looking at it as useful investment, she wants better clarity on how each of these techniques is helping her propagate her business objectives.
Organised and methodical as she is, Rita decides to clearly tabulate all the digital promotion activities that she has been pursuing and maps them with specific marketing objectives.
Now that Rita has mapped specific digital promotion activities with marketing objectives, she has to now look at ways of measuring the effectiveness of each of these techniques for her business. To be able to do this, Rita will have to collect data on useful metrics on each of these platforms.
The metrics to be measured will be different on different platforms. For example, Followers, Reach, Likes, Shares & Comments can be useful metrics to be measured on social media. However, Views & engagement time-span would be important for video adverts & content marketing. Email marketing campaign’s success would depend upon how many people open the email and then how many click on the ‘call-to-action’ button. The success of Search Engine Optimisation efforts will be reflected by ranking of the website on organic search (SERP). Effectiveness of SEO activities can also be measured by website hits, user return rate and session duration etc. These metrics are easily available on analytics programs like Google analytics. Similarly, success of Pay-per-click (PPC) can be assessed by CPC (Cost Per Click) & CTR (Click-Through Rate) respectively.
Now that the useful metrics have been clearly identified, Rita can objectively calculate the specific effectiveness of each of these digital marketing functions. To measure effectiveness of her Digital media campaign, Rita will have to make an assessment in 3 different ways:
1. Are the Marketing Objectives being met at each stage? Is the marketing campaign generating enough leads for the next steps?
Marketing campaigns are launched with specific business objectives. A campaign can be called successful if it is meeting these objectives. A campaign aimed at increasing brand awareness can be deemed successful if it is able to garner attention in terms of likes, comments, followers etc.
At Consideration stage, a campaign would be called successful if it has been able to motivate people to get more involved with the product or service you are offering. The metrics to be tracked here could be number of enquiry forms filled, no of telephonic enquiries received, more hits on Contact Us page or simply customer spending more time on product pages & review section.
Similarly, a marketing campaign aimed at increasing sales can only be deemed successful if it has been able to generate sales as per the target. The metrics of likes, comments & followers might not be relevant in this case as the objective was ‘Sales’ at this point of time.
Another important parameter to ascertain the success of the marketing campaign would be if it has generated enough customer data that can then be used for Remarketing (Retention), i.e. leads for the next steps.
2. Is there enough % conversion down the marketing funnel?
It is a well-known fact that number of people engaged with your business keep reducing as you go down the marketing funnel. However, effective campaigns produce higher number of % conversions to the next level of the funnel. A brand campaign that garnered attention from 10,000 people but could pursue 5% of it’s audience to take next steps (consideration), would be less successful as compared to a campaign which could reach only 2000 people and pursued 10% of it’s audience to engage with call-to-action buttons.
3. Is the campaign cost effective?
Cost effectiveness is at the crux of any successful business activity. A business needs to constantly optimise its operations to make sure that capital & resources are being spent wisely. Achieving the above two parameters while keeping the cost controlled is the decisive layer that completes the definition of efficiency here. A business promotion activity achieving the two previous objectives at the cost of business profitability would lead to unsustainability.
If Rita is able to generate a revenue of 10000GBP/month from her business operations, and her marketing budget is 20% of the net revenues; she needs to keep her cost of digitally reaching out to each customers within 2000GBP/month. If she is able to maintain this numerical balance while constantly pushing her revenues up or at least maintaining them at a certain level, she is running an effective digital promotion campaign. If, however, her revenues are increasing by 5% every month and the digital promotion costs are increasing by 10% every month; she is falling into an unsustainable business scenario…well gradually.
Therefore, the net effectiveness of a Digital Promotional Campaign will be a combined effect of these 3 parameters.
To test the applicability of this theory, Rita did a small experiment on social media. She launched a brand awareness campaign on 3 different social media platforms and collected metrics data over the period of one month. She purposely spent a fix amount of 20GBP/week on the three platforms and collected useful metrics.
Which of the 3 platforms do you think is most effectively running the awareness campaign for Rita’s wellness centre?
Social Media Platform 1
Social Media Platform 2
Social Media Platform 3
Social media Platform-1 has been able to generate maximum viewership for her campaign, however, the final lead generation is 2. Comparing this with Social media platform-3, where although the number of followers generated in comparatively less, maximum number of leads have been generated. This makes us understand that this platform can be effectively used for the marketing objectives at the top of the funnel, i.e. awareness. So, in order to optimise the effectiveness of her digital promotion campaign, Rita needs to concentrate her digital promotion campaigns more on this platform.
It is important here to note that there is no one best or worst digital media paltform for business promotions. Different digital platforms find acceptability with audience across different demographies and interest groups. Although it is important for businesses to create presence on all digital media platforms, they need to constantly evaluate & identify what is working best for them.
Wondering, if you can ...why not be there everywhere on the internet....why pick & choose and why analyse so much......well click below