The Secret to Retail Marketing Success (you probably wont like what you hear)
Here it is:
(yes, 1+1=2, 2x2=4, 3>2, that right, that type of pre-common core math junk most of us creative types have grown to hate).
I came to this conclusion after I recently had an interesting conversation with a relatively large omni-channel retailer and found myself surprised at what our conversation evolved into. When I asked if they felt they were successful in their overall retail marketing efforts this year or if there was room for improvement, the retailer replied with a candid,
“How do I even know if Im successful? What do I measure?! Im not sure what trends to even gauge for to even see if I’ve improved our marketing program significantly or even at all. WHAT DO YOU MEAN SUCCESSFUL?! WHAT TYPE OF QUESTION IS THIS?? HELPPPP!!”
(Ok, maybe Im over emphasizing their sense of despair)
BUT, to solve their problem I pulled together a list of what is commonly looked at when measuring retail performance (based of off Marketing Sherpa’s Ecommerce BenchMark study) and have listed them below. I wanted to share these metrics with the retail marketing world incase you yourself are facing this same common dilemma.
Metrics to Use for your Retail Success Score Modeling:
- Year over year change in annual revenue
- Year over year change in e-commerce revenue
- Gross margin percentage
- ROI on marketing spend
- Trend in orders placed
- Trend in cost of customer acquisition
- Frequency of site change based on customer feedback
- Steps in the purchase funnel
- Competitive comparisons:
- Customer guarantees
- Product value
- Delivery speed
- Market Share
10. Reputation monitoring processes
Now lets be serious, who actually likes metrics and reporting? Unless you are pursuing a career in data science, this is a strenuous and time-consuming task, but I will say this now and I will say this again and again and again…without metrics we will never know if we are improving. Its similar to working out, you do your standard reps and routine and then you continue to build and build and build until you are a freakin machine.
Do the same with your marketing metrics, it’s the only real way to tell if you are kicking some retail ass or kicking yourself for not spending the extra hundred bucks on a more sophisticated email platform or that top of the line CRM.
So, to put all of this briefly, you are numbers, numbers are you. Now go put on your fancy marketing pants that cost a lots of numbers (don’t worry, you can afford them now with the promotion you are about to receive) and calculate the hell out of some things.