(Part 3 of 6)
In our quest to apply actionable marketing analytics to corporate visions, we’ve discussed creating visions and then linking them to objectives. Now, we are going to show how to tie the objectives into specific, measurable, key performance indicators (KPIs).

Ellemenopea logo

Defining KPIs

Those goals are made actionable by linking them to something measurable. That’s what marketing analytics is all about. A key performance indicator includes a goal statement, a metric, a target, and a timeframe. KPIs are tied to the factors that drive long-term business success. This post will focus on Ellemenopea’s first hypothetical goal of increasing targeted website traffic to their site.

Site Traffic Metrics

Ellemenopea first decides to look at the competitive landscape, seeing how much traffic their site generates in comparison to other sites. This is the site traffic report for Ellemenopea and its competitors, using Compete.com data.

Competition for Ellemenopea

• Rightonthewalls.com (green) ranks #2 in Google’s natural search when the phrase “vinyl wall art” is typed in

• They have traffic at 11,500 visitors per month

• Vinylattraction.com (orange) ranks at #3 on Google

• They have monthly site traffic at 8,300

• Wallsneedlove.com (red) ranks #4 on Google

• They have traffic at 7,600 visitors per month

•Vinylwallart.com (blue) surprisingly trails in traffic even though they rank at #1 on Google
•Ellemenopea (yellow) only has around 500 visits per month

• They do not rank at all on Google, either in the natural or paid searches

To achieve their goal of driving targeted website traffic, they decide on 2 KPIs:
• Improve overall traffic share by increasing visits per month from 500 to 10,000 in six months
• Improve conversion rate by increases purchases per month from 2% of site visitors to 10% within six months

Quantitative Marketing

Let’s assume the following scenario:

Price = $20
Total Cost = $7
Profit per sale = $13
Profit Margin = 65%

500 visitors/month * 2% conversion rate = 10 visitors who buy

10 visitors * $13 in profit = $130 per month

In six months, if they achieve their goal, the equation changes to this:

10,000 visitors/month * 10% conversion rate = 1,000 purchasers/month

1,000 * $13 profit = $13,000/month

This transforms their business from making a profit of $1,560 per year to $156,000 per year. Suddenly, what was once a part-time side business/hobby has turned into a full-time enterprise with plenty of opportunity for further growth and expansion.

As Ellemenopea drives targeted website traffic as well the number of visitors who actually make purchases, then they not only improve their bottom-line, they also improve their brand loyalty and market position. These two metrics not only quantify what success looks like, it also creates a timeframe for realizing such results.

Linking It Together: Vision to Bottomline

As the owners of the site understand this and communicate it to anyone else on their staff, every action is then evaluated in these terms: will this action help increase traffic to our website or convert more visitors into buyers? If it does, they will do it. If they do not, they will avoid this action in favor of something more focused. This is exactly why marketing analytics is so important. It can mean the difference between a hobby and a successful business.

Part 4 of this series will discuss how to actually achieve these goals. We chose to focus this post on only one goal so we could examine it in depth.

If you are interested in learning how to flesh out the KPIs, let us know. Also, if there is anything that is working or isn’t working for you, let us know. We want to make this blog as useful to you as possible.

To turn a corporate vision into something more than just a nice plaque on the wall, you must tie your marketing efforts to your bottom-line. This means everyone in your organization understands how their contributions help move the company forward, achieve goals, and increase profits.

Niche Marketing Strategies

Take a site like www.ellemenopea.com. They create vinyl wall art like this:

Wall Art by Ellemenopea

Let’s assume their vision is to become the leader in vinyl wall art and decals. That’s a big goal: to become the recognized authority in their field. Achieving this goal would no doubt bring much success, but if there is no action plan, then they might as well stencil their vision on their wall and then forget about it. They need to set clear marketing goals backed up by measurable marketing analytics in order to achieve their vision. Some potential goals to achieve their vision:

Drive Targeted Website Traffic

Ellemenopea may decide that one way to achieve their vision is to optimize their website and get to the top of Google or other search engines. This achieves three purposes simultaneously:
• Get noticed by people most interested in what they offer (non-intrusive marketing)
• Build brand awareness (recognized as authority by ranking highly)
• Increase chances of turning browsers into buyers

Build Brand Loyalty

Another way they might decide to become the leader in the field is to create valuable content for their customers. They may choose to blog and showcase examples of how to take a wall and turn it into art. They may run contests. They may give discounts for referrals. They may run classes. This does the following:
• They are recognized as the trusted source for wall art.
• They get people talking
• These people tell friends
• They post pictures on their own blogs
• They tweet about their satisfaction with Ellemenopea

Pretty soon, Ellemenopea has a whole cadre of brand evangelists who purchase repeatedly and invite their friends to do the same. Their success snowballs, and eventually their goal is in sight.

Gather Competitive Intelligence

Then, the Ellemenopea owners may analyze other websites offering similar services. They could look at the products or services offered. They might look for clear calls-to-action. Then they could determine underserved niches and develop a niche marketing strategy to capitalize on missed opportunities.

By driving targeted website traffic, building brand loyalty, and gathering competitive intelligence, Ellemenopea implements niche marketing strategies to achieve its vision of becoming the leader in their field.

We’ve now discussed setting your vision and linking it to actionable marketing goals. Next time we’ll talk about determining measurable critical success factors. See you then!