Key Takeaway:
Grasp the importance of comparing the right metrics.
Learn two tips for identifying comparable metrics.
Discover two common pitfalls to avoid when making data comparisons.
With autumn leaves falling and apple orchards teeming with ripe fruit, it’s a great time to take stock of your marketing strategies. Just as you wouldn’t compare different apple varieties to determine the best harvest, you shouldn’t mix and match marketing metrics when evaluating your business.
Many small businesses make the mistake of analyzing data that doesn’t fit together, leading to confusion and misguided decisions. We’ve hand-picked some insights for reviewing your marketing metrics accurately, so you can get a clear and honest picture of your performance this season.
“Just as you wouldn’t compare different apple varieties to determine the best harvest, you shouldn’t mix and match marketing metrics when evaluating your business.”
– Technology Therapy® Group
Why Comparing the Right Metrics Matters
Just as you wouldn’t compare the flavor of a crisp apple to a juicy orange during harvest season, you shouldn’t evaluate marketing metrics from different channels as if they were the same. Each marketing campaign — whether it’s email marketing, social media, or paid advertising— serves a unique purpose and has distinct goals. For instance, comparing email open rates to Instagram likes is like trying to compare apples to oranges — they’re fundamentally different.
Imagine you’re running a social media campaign aimed at increasing brand awareness and an email campaign focused on driving sales. If you evaluate both based on conversions alone, you might mistakenly conclude that the social media effort was ineffective. However, social media campaigns often focus on engagement and reach, while email campaigns might prioritize clicks and direct purchases. Mixing these metrics can lead to misleading conclusions and prevent you from seeing the full picture.
To accurately measure your marketing performance, make sure to align your metrics with the specific objectives of each channel — like comparing apples from the same orchard. Take an email campaign, for instance. Metrics such as open and click-through rates are the most relevant indicators of success, as they show how well your audience responds to your messaging. By aligning the right metrics with the right campaigns, your evaluations will be as accurate as a fall harvest, so you can make better decisions for your business’s growth.
2 Tips to Identify Comparable Metrics
So, where do you start with comparing apples to apples? Here are two tips to keep in mind to help ensure that you’re comparing the right metrics when evaluating your business’s performance data.
1. Ask the Right Questions
Before diving into your marketing data, ask yourself these two key questions: “who are you targeting?” and “what action do you want them to take?” Understanding the audience and the specific goals for each campaign will help you determine which metrics are relevant and comparable. For example, if you’re running a campaign aimed at generating leads, you’ll want to measure metrics like sign-ups, click-through rates, and conversions.
However, if you’re focusing on brand awareness, engagement rates, reach, and impressions would be more appropriate. Mixing these different types of campaigns without clearly defined objectives can lead to skewed results. By asking the right questions upfront, you’ll compare the right sets of data and making informed decisions.
2. Use a Standardized Scorecard
To effectively compare metrics, it’s helpful to use a standardized scorecard. This simple framework allows you to track objectives and performance across various campaigns, ensuring consistency. For instance, you might set up a scorecard that lists each campaign objective (e.g., “increase website traffic by 15%” or “gain 200 new followers”). Then include a column to track actual performance.
To make comparisons easier, consider converting all your data into percentages. This way, whether you’re looking at an email click-through rate or a social media engagement rate, you have a consistent measure of how each campaign is performing relative to its goal. A standardized scorecard helps create uniformity across data points, so you can easily assess which campaigns are working well and which may need adjustment.
“To make comparisons easier, consider converting all your data into percentages. This way, whether you’re looking at an email click-through rate or a social media engagement rate, you have a consistent measure of how each campaign is performing relative to its goal.”
– Technology Therapy® Group
2 Ways to Avoid Common Marketing Data Comparison Pitfalls
Be aware of the traps that small business owners can fall into when making marketing comparisons. An overreliance on industry averages and comparing data from different timeframes are two of the faux pas that some of our clients fall prey to.
1. Don’t Rely Heavily on Industry Averages
It’s important to take industry averages with a grain of salt, as these can set unrealistic benchmarks for your business. Though these averages provide a useful backdrop, they shouldn’t overshadow the importance of focusing on your own progress and metrics.
Remember, the primary goal is to improve upon your own data over time. For instance, if your email open rates are above the industry average, this doesn’t mean your campaign cannot be improved further. Focus on optimizing and refining your strategy to maintain or even increase engagement, rather than settling for merely being above average.
2. Don’t Compare Metrics from Different Timeframes
A frequent error in data analysis is comparing metrics from different timeframes without accounting for changes in marketing strategy, audience behavior, or seasonal effects. To avoid this pitfall, it’s advisable to use consistent comparison periods. For instance, comparing quarterly performance within the same type of campaigns allows for a clearer understanding of trends and changes due to strategic adjustments.
If your business is affected by seasonal variations, such as retail during the holiday season, year-over-year (YOY) comparisons can be more insightful. Comparing November and December performance to the same months in the previous year offers a more accurate picture than comparing these peak months to quieter periods like October. This approach ensures you’re evaluating similar conditions and can genuinely measure the impact of any changes or improvements you’ve implemented.
Adopting an Apples-to-Apples Marketing Mindset
Like picking the best apples from the orchard, selecting the right metrics for your marketing strategy is crucial. By aligning metrics with your goals, creating a clear roadmap with standardized scorecards, and filtering out the noise of industry averages, you can harvest the sweetest rewards of data-driven decision-making. This empowers you to transform your marketing efforts from a scattered field into a bountiful orchard of results.
Let the Pros Help with Your Metrics
Need some pointers as you compare your marketing “apples”? Find a TTG mentor to sharpen your marketing comparison skills!
