Marketing channel selection is a crucial part of any marketing strategy, but it’s not enough to simply choose a channel and hope for the best. It’s important to evaluate the effectiveness of each channel regularly to ensure that your marketing efforts are generating the desired results. In this blog post, we will discuss how to evaluate the effectiveness of each marketing channel during a marketing channel selection review.
Return on Investment Measurements
Return on Investment (ROI) is one of the most important metrics for evaluating the effectiveness of marketing channels. It measures the amount of revenue generated compared to the amount of money invested in the channel. To calculate ROI, you need to track the revenue generated by each channel and compare it to the cost of running the channel.
For example, if you spent £1,000 on a pay-per-click (PPC) advertising campaign and generated £5,000 in revenue, your ROI would be 400%. This means that for every £1 spent on the campaign, you generated £4 in revenue.
ROI can be used to compare the effectiveness of different marketing channels and identify which channels are generating the highest return on investment. However, it’s important to remember that ROI is not the only metric that should be used to evaluate the effectiveness of marketing channels.
Key Performance Indicators (KPIs)
Key Performance Indicators (KPIs) are metrics that are used to measure specific objectives for each marketing channel. KPIs can vary depending on the objectives of the campaign and the channel being used. For example, if your objective is to generate leads through email marketing, your KPI might be the number of leads generated from each email campaign.
KPIs should be specific, measurable, and relevant to the objectives of the campaign. By tracking KPIs for each channel, you can evaluate the effectiveness of each channel and make informed decisions about which channels to use in the future.
Testing and Optimisation
Testing and optimisation are crucial for evaluating the effectiveness of marketing channels. Testing involves running experiments to determine the impact of changes to the channel on the desired outcomes. For example, you might test different ad copy for a PPC campaign to see which version generates the most clicks and conversions.
Optimisation involves making changes to the channel based on the results of testing. By optimising your marketing channels, you can improve their effectiveness and generate better results over time.
Some common tests that can be used to evaluate the effectiveness of marketing channels include A/B testing, multivariate testing, and user testing. A/B testing involves testing two versions of a channel to determine which version generates the best results. Multivariate testing involves testing multiple variables in a channel to determine which combination generates the best results. User testing involves getting feedback from users to determine their preferences and pain points.
Conclusion
Evaluating the effectiveness of marketing channels is essential for ensuring that your marketing efforts are generating the desired results. By measuring ROI, tracking KPIs, and testing and optimising your channels, you can identify which channels are generating the highest return on investment and make informed decisions about which channels to use in the future.
Remember to regularly review the effectiveness of your marketing channels and adjust your strategy accordingly. The marketing landscape is constantly evolving, and what worked yesterday may not work today. By staying on top of the latest trends and best practices, you can ensure that your marketing efforts are always delivering the best possible results.
Chris Barnard has spent over 15 years delivering exceptional digital marketing performance for leading businesses in the UK, Europe and North America as an independent business consultant.
FeedbackFans provides a unique next-generation managed technology and marketing platform that delivers outstanding and outsized results for businesses in sectors such as finance, retail, leisure, and professional services.
With our unparalleled expertise in creating cutting-edge solutions and environments, we empower our clients and users to thrive in the digital age.
Chris Barnard is Managing Director of FeedbackFans.
