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9.26.2011 | Kris Kolve

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Marketers generally spend the bulk of their time thinking about strategy, creative, goals, and the next campaign. Unfortunately, marketers often devote much less time to the critical question of how to measure success. But the way we measure actually affects the answers we get. And while selecting the right measures can be challenging, it can be made easier by understanding the business context, considering the use of multiple measures, and establishing a baseline.

Develop a deep understanding of the business context. What are the program goals and what is the typical customer behavior(s)? This is as basic as it gets but often marketers just pick a measure without really thinking about the business context. What does the first-time purchase process look like? How long does it take? What does the repeat-purchase process look like? Ask a lot of questions, especially:

• Am I asking the right questions?
• Will this measurement answer my question?
• What other questions will this measure answer?

Take, for example, an email campaign intended to drive new sales. We might measure several things—opens, click-throughs, and sales conversions. Let’s say we choose sales conversions for our measure and the result is a measly 0.5%. Was this campaign successful? Doesn’t seem like it. What if I told you that customers were extremely sensitive to how easy the checkout process is… does measuring sales conversions still measure campaign success?

Consider using more than one measure. Sometimes success can’t be measured by just one number. It’s perfectly acceptable to use several different measures and evaluate success based on more than one criterion. In fact, it will help you to understand the bigger picture. But keep the total number small and only include a particular measure if you need it.

Going back to our email campaign example, let’s say we added click-throughs in addition to sales conversions. The click-through rate for this campaign ended up being 10%. Again, was the campaign successful? Ten percent seems pretty good, right?

Establish the baseline. Always make it a point to ask, “Compared to what?” Understand what the baseline for success is. A number by itself is just a number, but when you can put it in context, you can understand success.

Returning to our example email campaign once again: If I told you that the typical click-through rate for historical email campaigns was 15%, does this change your answer as to whether or not the campaign was successful? What if the typical sales conversion rate is 0.15%? Does your answer change yet again?

So as you’re strategizing for your next great marketing campaign, remember the importance of quantifying results—this crucial step could well ensure success beyond measure.