By taking this funneled
approach - planning down from the broad goal to the
specific marketing program - you are better able to
evaluate how well each program supports (or fails to
support) your goals.
From the start - when you
are developing your plan and deciding site structure -
think about how to measure performance. Measures will
differ, depending upon the situation, but should be both
quantitative and meaningful with respect to helping you
improve site performance. Choose a set of measurements
that will tell you not only how your marketing programs
are working, but also how well they support Website
goals.
Evaluate Marketing Programs
To evaluate a marketing
program's success, decide your objectives first. You can
then "connect the dots" between those objectives and
your site goals. Later, when analyzing program results,
evaluate not only whether the program succeeded in
meeting objectives, but also how well it moved your
business toward its Website goals.
It is possible to meet an
objective for the marketing program while failing to
support site goals. Many traffic generation programs
serve as an example. Businesses will often participate
in "hit" programs with disappointing results. They reach
"hit" objectives, but move no closer to site goals.
Consider Return on
Investment (ROI)
One way to evaluate
marketing program results is through Return on
Investment (ROI) analysis. ROI is a computation that
tells you how much you received compared to what you put
into a project. You can express ROI in terms of a dollar
amount or as a ratio. Either way, the formula itself is
simple.
The dollar amount formula
tells how much you increased profit in total dollars as
a result of the project:
(Cost savings and earnings as a result of the project)
minus (Dollars invested)
The ratio formula
tells how much you got back, in dollars, for each dollar
you invested in a project:
(Cost savings and earnings as a result of the project)
divided by (Dollars Invested)
IMHO, things get sticky
when you try to define “cost savings and earnings as a
result of a project.” This is because returns from
marketing investments are broader and often more
abstract than returns from some other types of
investments. Marketing investments have not only direct
monetary benefits, but indirect benefits as well. These
indirect benefits are often intangible and difficult (if
not impossible) to measure directly.
If you are part of a
typical small business with limited resources it may
feel like you are in a no win situation. Accurately
computing ROI requires a detailed analysis for which the
internal resources and expertise are often lacking.
Outside consultants can spend hours unearthing data and
computing an accurate ROI, but this can be expensive on
a small budget.
This does not mean,
however, that you cannot use ROI as one of several
inputs into program evaluation. When figuring ROI and
evaluating marketing program success, keep in mind that
each project will realize different types of benefits.
Aside from direct dollars cost and direct dollars
returned, consider other potential project benefits,
including how well it supports your site goals. Other
aspects to consider:
Improved customer
relationships.
Happier customers can represent a return on investment.
This can be gauged through repeat order patterns, by a
change in the number of complaints/compliments, or
through customer surveys comparing pre- and post-project
satisfaction.
Influence on offline sales.
Online activities often have an influence on offline
transactions. You may experience sales leads originating
from your Internet programs, for example. Customers may
also be driven to your offline store as a result of
online information.
Brand building.
Online activities can mean better long term growth for
your brand. Market share changes, online interactions,
and brand awareness surveys are some ways you can judge
brand building effects.
Company growth potential.
Factor in long term growth prospects when evaluating
your project. For many businesses, the Internet provides
access to new markets and customers. If you have a local
business, for example, your Website could extend your
business far beyond the city limits.
Take into account these
broader implications, pay attention to how well a
marketing program supports your site goals, and measure
program results. By taking this three pronged approach,
you can better choose marketing programs with positive
results.
About The Author
Bobette Kyle draws upon 12+
years of Marketing/Executive experience, Marketing MBA,
and online marketing research in her writing. Bobette is
proprietor of the:
Web
Site Marketing Plan Network:
http://www.WebSiteMarketingPlan.com
and author of the
marketing plan and Web promotion book "How Much For Just
the Spider? Strategic Website Marketing For Small Budget
Business,"
http://www.HowMuchForSpider.com/TOC.htm
