W. Edwards Deming said "you cannot improve what you do not measure." For us marketers, it's important for us to identify what our ultimate goal is by defining a marketing objective, then measure how well we're accomplishing that goal. Measuring our performance allows us to improve.
The challenge is that there may be a few steps between the marketing activities we take and the business outcome we want. For example, we might want to increase sales at a restaurant, so we might send an email blast with a promotion in it telling people to come visit our restaurant. How can we tell that the the email blast was effective and, if it was, how can we tell what the return on our investment was?
The answer is to build a marketing funnel - a marketing funnel is the series of actions or steps that a customer takes to link your marketing activity (email blast) with your desired marketing objective (sales). In the case of an email blast, a funnel might be:
Open Email > Read Email > Print Promotion > Come to Store > Redeem Promotion
A general rule is to keep your marketing funnel as short as possible because the longer the funnel, the fewer number of people who will actually complete it. So, a marketer's goal when creating a funnel should be to make only a few steps and make sure you can measure each one to understand how well your plan performed.
At Privy, we LOVE marketing funnels...in fact, any promotional campaign that a brand runs with us automatically has a funnel attached to it that helps marketers improve each campaign and remarket to customers for free.
Do you plan out your marketing funnels? Are you able to measure every step?