Episode 33 | Masterclass What Marketing Metrics Should You Track

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Welcome to the Boss It Podcast. My name is Sophia Noreen and I took an Etsy startup, and launched it in big box retailers within 12 months. As a creative with an entrepreneurial drive, I left my full time career in healthcare to find better harmony between career, family and self care. We believe you can have it all. Yes, you can launch and run a successful scalable business while maintaining harmony in all aspects of your life. We believe we can learn from each other and draw on many experiences to create the best life possible. During each episode, we will share proven life hacks that will keep you on top and striving every day. There should be no hesitation. Make a plan. Take action. We are here for you. Hello, everyone. Welcome to another fantastic episode of the Boss It Podcast. My name is Sophia Noreen, and I'm going to be your host for today. Today's episode is all about measuring your results for your marketing campaign. We've been doing Marketing Series for the past few episodes to help you get started, because remember if you don't market your business, then nobody knows you exist. That's great, we've been planning our campaigns, we've been getting our scheduling done, and we've been going through all of the nuts and bolts of what it takes to plant a really successful marketing campaign. But at the end of your campaign, you must measure what you have accomplished. You must see what is working for your business. Today we are going to be speaking specifically about the KPIs, the key performance indicators that you should consider when you are coming to the end of your campaign and measuring what worked and what didn't work so that way you are not wasting your time and efforts in future. This way, you are not wasting your time and efforts on tactics that might not be working. What I want you guys to do is if you're not driving or doing something else right now while listening to this episode, I want you to go and click on the link in the show notes. It's going to allow you to get our workbook that we shared during our master class. Rather than doing a whole episode for this specific topic, we've decided to give you guys our Masterclass on how to measure the success of your promotional campaigns, and this is a recording from one of those classes, so what that means is that you guys get the workbook that's included with this masterclass. If you are not driving, or if you are not doing something else right now, you can go ahead and check out the workbook, just click the link in the show notes, and it will take you to the workbook. And you can go ahead and use this workbook to plan what key performance indicators would work for you. So in this episode, we are going to speak about response rate, call to action, click through rate, referral traffic, and total visits, and we will speak about incremental sales. This topic is very technical. We could go on and on about all the different measurements, but these are the measurements that we think most beginners should start with, that way you're not becoming too overwhelmed, but you do have the ability to strategically plan and measure the results of your promotional campaign. I'm going to let you guys get right into the Masterclass. Click the link if you want to have access to the workbook, and remember if you have any questions at all, you can always send us an email at [email protected]. Enjoy the Masterclass.

Today, we are continuing the series with promotion Marketing, the Masterclass Series. The reason we did this series was because when you start a business, you definitely need to know how to market your business because if you don't market, then no one knows you exist. Hajra is in the background helping us out today. There's a workbook associated with this masterclass, so you can use that workbook to take notes. Let's get started. Today we're going to be discussing why we measure. We're going to be speaking about a few key performance indicators or KPI, that we should start with and finally, the take home message: Why are we doing all of this? So why are we measuring? we are measuring because we need to know if our marketing efforts are working. We put so much effort into marketing. We are posting on social media. We are paying for ads. We are putting all this energy into getting our product or service brand name out there, so our customers can actually take advantage. We need to know what is working, and then what is working needs to be doubled. Usually there's one or two things that you're doing that are really pushing your marketing efforts and seeing the results that you want, but then there's a few other things that are maybe not and you don't want to take your time and energy then. For example, if you were posting on Instagram everyday and you're not seeing the reactions that you're looking for, you're not seeing the results you're looking for, then you shouldn't be spending all that time and effort to do that. So that's one tangible example. there's many other reasons. Why you would want to keep measuring your marketing because marketing costs money. And if you are spending money on ads and your ads are not converting, there's something wrong with the ad or you're not targeting the right audience. If you don't measure, then you don't know. there's a cycle that we speak of in business and any type of development of any product and basically, you're going to Do something for a while, I'm not going to go into too much of the theory of the cycle but think of it as an experiment. You're going to do something, so earlier in the series we spoke about where you should be marketing, who you should be targeting, and then you're going to do that for a while. You're going to plan it out according to your promotion schedule, and then you're going to measure it. So now we're here measuring our efforts, we're also going to be measuring the outcomes. There's an input, which is our promotion efforts, our promotion dollars, the time spent, and then there's the output: what are the results we're looking for? Sometimes people will always equate that to money. It's not always money because as we speak about influencer marketing made easy, we speak about that there's also brand name recognition. Those are things that we're going to look at when we are measuring our marketing efforts. We want to see the output, we want to know if it's working. If you watch Dragon's Den, or if you're watching Shark Tank or any other business type of show, you know that they're always asking about the numbers, and there are so many numbers. They are asking specifically about some of the marketing numbers as well, so don't want to overwhelm people with all the different marketing numbers that come out when you are doing a marketing strategy or marketing plan. I picked a few that I felt that would help you when you're getting started, and something that you should be measuring consistently, especially if you're developing content for social media or if you're putting something out there that your result/ your output, what you want to get out of that marketing strategy is for example, a sale or a conversion. So I picked a few indicators for you to basically see if you can add it to your marketing plan at the end. So you're going to essentially make your plan, you're going to pick your areas that you're marketing in, and then at the end, these are the indicators that you want to see results in. It's not always your follower account on Instagram. That's not always the one that we should be looking at. Response rate: response rate is measuring the total number of customers who respond back to your company's communication efforts. the example I gave was a call to action. When you are communicating with your customer through any platform, a times you expect them to respond back if they're actually engaging with you and hearing your message. So call to action, they will abbreviate that to say CTA, and you will hear that a lot when you are taking in content and marketing content, they usually abbreviate that to CTA. They will say that on every piece of social media context specifically, for marketing or for just engagement, you should have a CTA, a call to action. Now I just pulled that example as one of many response rates. You could have other response rates, but for now we'll just speak to the CTA because that is the easiest one for you to implement when you are putting through any type of social media response. you're looking for a social media response, you put up a post and you ask them a question and your call to action is say, for example: comment below what your favorite flower is. Pick something. Spring time's coming here in North America, you're taking pictures outside. What's your favorite Color of flower? That's your call to action. Or your call-to-action could be something like, click the link in my bio, but that's clicking the link to the bio is something else that we can measure as well. So call to action is basically that they are responding to what you're asking, and it's your communication efforts. At times this may not be the result of a sale, but what this is showing you is that your audience is engaged with you, they're listening to you, they're responding to what you're asking, and that's one step closer in them coming and trust in you and buying from you. Remember people buy from you if they know, like and trust you. Most of the time, your product, service probably is available elsewhere, so now what you want to do is build that rapport with your customer, with your audience so they'll like you. One way of doing that is to see how they're responding to you, your messaging, and any of your efforts. Next is the click through rate, it is the measurement of how often a link is clicked, and your customer arrives at your website. I know many people who are going to be watching this later on, or watching it now, I know multiple people have websites or they have a way of their customer purchasing. The click through rate is very, very vital and important. If your CTA, call to action, is I want you to go click the link in my bio because I have a fantastic sale for you, then the way you can see that response is that they go and they click the link in your bio. So click through rate is very important and a very easy thing that you can track. In most websites, there's a section that you can get all your number, your data, and you know exactly where they're coming from. We'll talk about that as well. there's a section inside of Shopify; most places, most websites, Etsy has it, and you can see exactly where people are coming from. You can also get your click through rate when you go on Instagram, you can see how many people are clicking. There's actually many softwares that will connect your Instagram and give you really finite data about where your information is coming from, where people are coming from. Are they clicking your rate? How many times are they clicking the rate? So the click through rate is extremely important. The analytics section is the section that you can go to on your website and it will show you where people are coming from, plus it will tell you if they're actually clicking the link. For example, if you have partners, retail partners, boutique brands that are putting your link on their website, then you can see the click through rate, and then you know where traffic is coming from. So you may say, okay, well, I know that this marketplace page has a lot of visitors and they're clicking on my link, so maybe I should do a partnership and a promotion with them. That's how you can take your click through link data and know if the link has been clicked, and go double down in that area. This is a very, very crucial KPI, key performance indicator, that you should use to ensure that your efforts are actually resulting in them coming to your website in this example. S o, referral traffic. We did refer to the referral traffic a second ago when we were referring to the click through rate. So back here we spoke about the click through rate and we gave the example of a website. You may have your domain listed on another website. So if you know the click through rate on a website and you know that it's coming from a referral source, it's coming straight from another website. It's coming potentially through a affiliate link, then you know that that source is actually producing traffic to your website in this particular example. It can be on Etsy as well or any other type of platform, or you're making payment. The goal is that you would like to have an idea of where your traffic is coming from. We know in our business that most of our traffic actually comes from Instagram, because of that we've placed all of our campaigns on Instagram. We put majority of the campaigns on Instagram. Here when you are planning your promotion and you're like: Okay, well, I want to do a promotion on Instagram, I want to do a promotion on Facebook, and I want to do a promotion on Google. Those are the three. At the end of the promotion, let's say, I'm going to measure the referral traffic. You're going to go into your analytics section again of your website, and it will tell you exactly which link was clicked to arrive at that website. You may even be able to see how much money is spent through each platform. Instagram has Instagram shopping, so does Facebook. I can actually see how much money people are spending right on Instagram. So they're not leaving Instagram, they're actually shopping right through the app. That's directly related to the promotion efforts that the team is running, so that's directly related, we can say that's a direct link. We can also say: Okay, we have all of these affiliates and they have been able to convert their followers, their audience into a paid customer. So that's another referral traffic source. When you're going back at the end of your campaign and you're collecting all this data, don't forget to look at exactly where they are coming from. I want to just back up one more time to the click through rate and speak to Google ads or Facebook ads. The click through rate needs to be identified there as well. And the reason I say that is because a lot of people pay money for Facebook ads and Google ads, and they don't know why they're not converting to a sale. One thing you can do is go back and see what the click through rate actually was. It may not have resulted in a sale, so you have to see where your customer got lost. Was your ad the problem, or was it the fact that they clicked on an ad, the ad was great, but something's going on in your website that's not converting them. And then there's different things that you can do on your website to make it more hospitable so your customer will just buy. We're not going to get into that today, but I just wanted to back up to the click through rates. So you guys had that, you didn't forget about ads and understanding that ads should have a strong call to action. So There's a sale, click the link below to grab it, and then you check the click through rate and then you see if they convert. But I didn't want you to forget about the click through rate when you speak about ads. Okay. Total visits. This is the number of people that have visited your page or your site. This is also extremely important. This will result in a potential sale. You will eventually be able to calculate a conversion rate, and we're not going to do conversion rate today, but you have to know the total number of visits in order for you to be able to to calculate your conversion rate. You need to total visits, and then you need the total number of people that actually checked out of your page and successfully converted to a paid customer or a paid client. Knowing the total traffic to your site is important because if you know that your conversion rate, not to get too into it, but if you know your conversion rate is 1%, you need to have over a hundred visits to your website before you even get one sale. Right. So by doing your promotion efforts, by saying: Okay, I'm going to post every day and I'm going to do paid ads. All the efforts, you have to see now in the end, does it actually result into a visit? Because if it's not even resulting in a visit, it's not going to result to a sale. At the end, you have to see now how many people actually came to our website as a whole. You may be thinking what's the difference between total visits and click through rate? Click through rate is the finite, so you know you have your total visits, like an umbrella of all your visits and then underneath umbrella, you'll see where are they coming from. So your referral source and then the click through rate is underneath that to say: Did they click this link from this referral source? So maybe a referral source has a few links. Maybe they have a link on their website for their blog. Maybe they have another link, like their affiliate link sitting somewhere else. You can probably be able to really narrow down where all the individuals are coming from, but the total visits of your website are also very important. You may even not realize it, but you could be getting individuals speaking to each other saying: Oh, so-and-so has really good services or good products. And so because of that, it's not coming through necessarily a link. It could be coming from just them organically typing in your URL, and actually visiting your website. So those are all things that you need to understand that it may seem that they're the same, but they're different. They'll tell you a different story about how your campaign worked or how your promotion was working. Okay, This is getting a little bit more in-depth when it comes to the numbers, but the incremental sales is demonstrating that you have put your marketing efforts in and it actually increase your sale revenue. In simple terms, I'm going to give you an example cause that will really help illustrate what I'm speaking of. So say you expect that each month you're going to make $500 without any promotion. You just have this organic group of people, or you have a subscription model, or however your business has created, you have a base of $500 a month that you're expecting to make. You've decided that you want to do a campaign, so you're going to go ahead and put $300 into Facebook ads. And then at the end of the month, when you have gone and measured what your sales were, they were actually a thousand dollars, so you've made double the amount of sales. You can say that based on the campaign, your incremental sales was actually $500. You can attribute this more or less directly to your promotion efforts, So the sale being the promotion. You can basically say: Because our baseline was 500 and we put all this effort into promoting it with Facebook ads, we actually increased our sales and we only can attribute this to the Facebook ads. We didn't do anything else. This does work really well for people who have a history. You may at the beginning not have the history of sales volume, so it might be more difficult for you to take this approach. But think about the longterm. This is why it's great to measure at all times to say: Okay, I expect this, I expect that, I expect this. So then you know that when you do start a promotion, that you have the ability to calculate your incremental sales volume. There's a few things that you're going to look for, when you are seeing the success of your promotion. You want to make sure that the sales are greater than the investment. So here, For example, we have $300 were spent on Facebook ads and $500 was ROI, 500 obviously is greater than 300, so return on investment would be the $200. Sales' actually were $500 more, 300, so our return on investment was $200. We made $200 more because we ran $300 worth of ads. If you take the difference, that's how you know that you've been successful. And then there's another caveat to this, right? It's the caveat where you cannot directly account for the sale coming through that click through link or that referral source. It's the indirect increase in sales. So I speak a lot about brand name awareness in the influencer marketing made easy group, and a brand name awareness is very very strong. You can't negate the effects of brand name awareness, and that's why they say: it takes a minute to ruin your brand name because your brand carries a lot of weight. If you do a lot of promotions and it's increased your brand name awareness, that could actually be attributing to sales later down the road. And You could actually be making sales later on because you have done a promotion. But you can't attribute that directly at the time you measure your incremental sales for that month because the customer doesn't buy during that month but they say: Oh, I remember so-and-so had beautiful bags, for example. Beautiful clutches. I'm going to use Clutcheet for example, very beautiful clutches. And I don't need it today, but I'm going to get that from my mom for Mother's Day. But Mother's Day is in May In Canada and the US, North America, it's in May so we're not going to buy it today. We're not going to buy it in March because Mother's Day is still far away. Most people wait till the last minute, we're going to buy it in May. If the Clucheet's owner's like: Okay, I'm going to go ahead and I'm going to measure my KPI for this month, my incremental sales volume based on all the Facebook ads that I've done, she won't see that result. S o we did speak about how there's many numbers that you can choose to measure during your campaign and the success of your campaign, but there's a few that we've selected. We've selected response rate, the click through rate, the referral traffic, so where's your traffic coming from, the total number of visits that have come to your website or the link that you're wishing to make payment with, and then your incremental sales. iIncremental till sales are extremely important again when it comes to measuring the finite details, so you want to know the details when it comes to how much money you're putting in, how much money is coming out, what can you attribute directly to your marketing efforts and what can you attribute indirectly to marketing efforts? Like I said, it's difficult to say that this sale was brought to you by this marketing effort. But again, it's something that you just have to keep in mind. If you plan to run a campaign and you know that there's a few other events coming down the road, you may say: we haven't ran any other sales or any other promotions for awhile so likely this boost of sales is probably coming from this marketing effort. And that's it guys. Thank you guys. This is great. I'm very happy that you guys were able to make it out today and again, get the workbook, make sure that you do measure. When you do have campaign make sure you do measure because we don't want you to be putting your efforts into something that's not working. The goal here is for you to be as knowledgeable about the results as possible. And, yeah, I hope you guys have a fantastic rest of your week. And that's all for now, bye guys.

So my fellow bosses, did you enjoy that episode? Now is time for you to make a solid plan and take action. But first, remember to subscribe and follow the Boss It Podcast so you receive a notification whenever we drop an episode. Remember to leave us a review on iTunes. Take a screenshot of your review and share it on Instagram as a post or a story and tag us @BossItclub. If Instagram is not your thing, no worries. Email your screenshot to [email protected]. As a massive thank you, we will be sending you our Top 50 Tips for Starting and Scaling a Business. This list is exclusively for podcast reviewers. So don't miss out. Now remember bosses: make a plan and take action in all aspects of your life. Yes you can have it all. Wasn't that such a great masterclass. I hope you got some key points, and you thought about a few of the strategies we spoke about during the masterclass. For example, I hope you were thinking, how can I apply these key performance indicators to my promotional campaign? I hope you are also thinking, should I go and understand what my baseline sales look like? So that way, when I do run a promotion or I do run a campaign, I can measure the incremental sales.

These

are really important metrics, which I know can seem overwhelming, but trust me, the earlier you sink your teeth into them, the easier it will be for you to pivot and change, and actually have a strategy behind your promotion campaign. I really hope you enjoyed that masterclass, and remember if you have not done so you could always click the link in the show notes so you can get access to the workbook like our students did in the masterclass, and if you have questions, you can send us an email at [email protected]. Thanks again, and remember, make a plan and take action and yes, you can have it all. Talk to you next time. So my fellow bosses, did you enjoy that episode? Now is time for you to make a solid plan and take action. But first, remember to subscribe and follow the Boss It Podcast so you receive a notification whenever we drop an episode. Remember to leave us a review on iTunes. Take a screenshot of your review and share it on Instagram as a post or a story and tag us @BossItclub. If Instagram is not your thing, no worries. Email your screenshot to [email protected]. As a massive thank you, we will be sending you our Top 50 Tips for Starting and Scaling a Business. This list is exclusively for podcast reviewers. So don't miss out. Now remember bosses: make a plan and take action in all aspects of your life. Yes you can have it all.