We have just mentioned the word 'measure', a term closely related to metrics. I guess it is the most traditional way I know of keeping control over what we do. As the Viennese philosopher Peter F. Drucker said: "what cannot be measured, cannot be improved". At Occam Digital Agency, we think that applying this reflection to Inbound Marketing can generate good results, so today we ask ourselves these questions:
- why do Inbound Marketing analytics?
- what is measured in technology companies?
- why is it measured?
We have found the answers in our experience with technology companies, and today we want to share them with you. Are you ready to take your company to the next level?
Analytics in Inbound Marketing, what is it?
It is possible that at this moment you have many doubts, concepts that you do not know how to fit in your mind, and ideas that you do not know where to take. On this occasion, we will try to define what analytics in the Inbound methodology consists of. With patience and commitment, everything is possible!
how many times have you heard 'this month we have achieved 5 leads or sales opportunities'? Well, that is a measure, that is, "the result of a single and specificquantification of data ". These small metrics can gradually give rise to a set with which, later, to make a meaningful analysis.
In short, it is an analysis carried out to know the state of our Inbound Marketing strategy in the IT sector and to establish a report with the results. It will be the basis for our decision making. Nowadays, technology companies need to make metrics, so they must be very clear about what can be measured, how and whether or not it can be improved.
Digital transformation as the basis for change
As time goes by, companies are joining the digital transformation process required by the current landscape and taking on new risks. In this reinvention process, the business culture requires new techniques in their processes, so they start to use analysis and measurement techniques for the activities they carry out. This is one of the advantages offered by digital transformation, as it is an area of interaction that can be measured.
We live in a world in constant change. Technology companies are the main protagonists of this, and they cannot go unnoticed in the face of market demands. We know that it is not an easy challenge, especially because of the lack of knowledge that many companies still have. Today we want to solve this problem by providing a grain of sand called 'analytics', as it is the technique that guides companies on the direction they should take according to their current possibilities.
We prefer to ask 'adapt or disappear'?
As an Inbound Marketing agency, what metrics do we measure?
We know that analytics is a mixture of science and art. And in the same way, we know what can be measured and what can't, what tech companies need and what they don't, what the IT sector can improve and what it can't. We speak in the terms that the Inbound Marketing philosophy promulgates. We keep learning and we know that tech companies can improve. We tell you what metrics we measure to do so:
- Visits. We increasingly value the traffic generated on Google search engines and the presence of brands on social networks, so it is important to use analytical tools that allow us to offer grouped information on the traffic that reaches our websites according to users, conversions, etc.
- Sales: Achieving sales is one of our priority objectives, so measurement tools can show us how they are being carried out, whether they are being achieved, calculate which products or services have a high cost and low sales, etc.
- Analytics allow us to calculate the total revenue we have achieved, as well as the average per visit, which is generated from the conversions produced by visitors who have come to us via search engines.
- Leads or sales opportunities. It is important to differentiate between MQL (Marketing Qualified Lead) and SQL (Sales Qualified Lead), as the former are sales opportunities identified by our target audience, while the latter have already made the decision to value our products. Its measurement allows us to know how many potential customers we have received during a given time among the total number of customers that have finally been closed. We are talking about Leads to Close.
- LTV (Lifetime Value of a Customer). This metric is very important in measuring the ROI of technology companies, as it allows us to know what the real benefit of the customer is during the time they spend with us. In short, it is the amount that a consumer is expected to spend on our products or services, which allows us to make precise decisions about how much to invest in their acquisition and retention.
- Conversions: The conversion funnel may be the most important metric for tech start-ups, which is why we at Occam don't hesitate to measure it. We look at how users find you, what their first experience with you is like, how many times they come back, whether your company makes money and whether they tell other users about it. In short, we talk about acquisition, activation, retention, monetisation and referral.
At Occam we also analyse Social Media KPIs, such as increase in followers, clicks, shared links and volume of posts. If you want to know how we do it, don't hesitate to contact us.
Metrics are groupings of many measures and allow us to explain contextually some actions. They help companies to understand the results obtained. And in your company, are you aligned to achieve the objective of your actions?
If you don't measure what you do, you can't control it.