Lately, I’ve been noticing different memes on LinkedIn posts, which are fun because they are related to our daily routine at an office or scenarios, and we can relate. I’ve encountered some of those daily until I met this one.
I was a little bit disappointed, but at the same time, it opened my eyes. It opened my eyes because when I saw who posted and how many people reacted agreeing to it, it made me understand that many people who call themselves marketers don’t do the math, or they are afraid of doing it. Then how are you defining success? I know you can measure brand awareness and other aspects of success without math. For me, Marketing needs to be measured since your goal is to generate revenue for a product, brand, or business. Not only do I believe in this, but many of my colleagues I’ve had in these past years agree. It disappointed me because if you are a marketer, you should not be afraid of math since that will give you what you need to succeed. How do you make important decisions? How do you measure success after a marketing plan is executed and finalized? How do you know what to do and when in moments of chaos? Again, I know some these things can be measured without math, but revenue and costs are always involved in marketing efforts. When I started working on marketing, I understood the concept of making money quickly. What I didn’t know was how I could measure our efforts. With time and experience, I learned what Key Performance Indicators (KPI) are. While experimenting with different areas of marketing, I identified that I like digital marketing. I don’t call it digital marketing anymore since almost everything is digital already.
I’m sure you know that in marketing, data is essential. I understood that too, when I started my career, but I didn’t know how to get and use that data. When I started in digital media, I learned about KPIs and how to use them. In digital media, everything is about the KPIS. How much you spent, how much revenue you generated, how many people visited your website, and other metrics that correlate to each other to execute the funnel marketing efficiently. These data not only to let you know how the campaign did. It is to tell you how it did, any trends in consumer behavior, how it is going and even is the primary source at the time of decision making. It is essential to understand that KPIs are not only to see the past but to define the future toward success. Before I optimize my programmatic campaigns, I take a deep dive into data, looking at all the KPIs defining my success or failure. I look at the spending allocation and how it affects other metrics like clicks, conversion, and revenue. There are deeper KPIs like where are we serving ads, who are we serving ads, what are the CTR % of the different audiences, etc. I’ll not go as deep as I want since it will confuse you. Once I look at the data, analyze it, and create the story I make decisions in optimizing the campaign based on what I discovered. Normally my goals are based on positive ROAS (Return on Ad Spend), COS (Cost Of Sale), and CPL (Cost Per Lead) which involve calculations between some of the KPIs mentioned above.
KPIs are not only used for digital media, but business owners should also use them. KPI will help them as they help me with my programmatic campaigns. One of the most important things a business owner must do is to make decisions. Business owners’ KPIs can be customer feedback, employee performance, profit margin, losses, and many more. This can be hard for these entrepreneurs, and it can even be challenging to define the KPIs you will use. Something that will help these owners is the EOS (Entrepreneurial Operating System). EOS focuses on six components that cover or help you to solve 100+ common problems that a business usually encounters. Starting with EOS to identify your KPIs is a great strategy. Mixing KPIs with the EOS approach will guide you to reach success by creating a solid company, corporation, or business. You must have a clear vision of your company to use this approach accordingly. I encourage you to use numbers, do the math, understand them, and use all these KPIs to solidify your work and business decisions with information that will back them up. For years, I thought I was horrible at math or with numbers. I started to get out of my comfort zone, practice math, look for data, and push myself to create stories based on them for the decision-making process, and I found out that I’m not bad at math; I just needed to practice and understand the logic of it.
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