Have your holiday marketing and sales efforts been successful? As you plan ahead to January, you know you’ll be facing this question. Here are five analytical factors you can watch to see how you did this year.
Growth year over year: Assuming your brand has been in business for more than 12 months, compare your previous year’s activities to this year’s. Evaluate both processes and outcomes. Some areas to look at include:
- Campaigns launched
- E-mails sent
- Ad spend
- Partner promotions
Conversions as a percentage of traffic: Within your digital channel, look at your conversions as a percentage of traffic. For example, if 100,000 people visited your site and 10% bought, how does that compare to past performance? When putting conversions into context, it’s easy to see what’s effective in driving more conversions and how you’re performing vis-à-vis the industry standard. Since conversions ultimately underscore revenue and customer activity, they help you determine whether your holiday campaigns are turning browsers into actual buyers.
Engagement by channel: If you’re running campaigns on different digital channels, how are they driving engagement? For example, within your social strategy, how are Twitter, Instagram, Facebook, and LinkedIn® performing? Understanding engagement by channel can help you better delineate how your audience uses different channels and where to invest resources, whether it’s content creation or paid advertising. When you look closely at this performance within the holiday season, you can craft future plans for target campaigns and high-velocity times of year.
Acquisition cost per customer: If you really ramped up your marketing this year, did it pay off? One way to evaluate this is to look at acquisition cost per customer. For example, if you ran a paid search campaign that cost $10,000 and you gained 5,000 new customers, each customer cost $2 to acquire. If your average cost of acquisition is $3, this is a positive channel. Another way to assess this is to look at the average profit per customer. If you pay $2 to acquire a customer and make a $4 profit on that customer, you’re coming out ahead. Compare acquisition costs to revenue, profits, and acquisition via other channels to get the full picture of how these acquisition costs are paying off.
Average order size: Most businesses have a customer base with an average order size or average order value (AOV). For example, a shoe store might see an AOV of $100 per order. Does this increase with marketing during the holidays? For some retailers, specific promotions can increase AOV and help make the holidays more profitable. A common example of this might be a buy-one-get-one (BOGO) promotion or discounts and coupons. Evaluate what tactics and strategies increase your AOV. In addition to attracting more customers, learning how to entice your existing customers to spend more with you has a healthy impact on your bottom line.
The holidays are a busy time for marketing. Don’t forget to create an analytics program that will help you measure the effectiveness of your efforts and refine how you dedicate your marketing in future holiday seasons.