This post will help small and medium-sized businesses realize what metrics to control when working with a performance marketing agency. Moreover, it will help organize the work with such an agency. And it will even illuminate the agency's expectations both at the stage of choosing a digital marketing contractor and at the stage of working with it.
First, you need to figure out the most important thing: the metrics by which a business measures the work of a performance marketing agency cannot exist in a vacuum in isolation from all the other metrics. Ideally, metrics for performance marketing are part of a complete business analytics ecosystem. Let's take a closer look at how to correctly incorporate performance marketing metrics into your business analytics and goal-setting system.
For performance marketing, SMBs have three levels of goals: business, marketing, and technical objectives for the agency.
An example of a business objective is to raise gross monthly revenue by $400,000 in one year. The business owner or general manager usually forms it.
An example of a marketing objective is to achieve 80 new clients in a year with a check of $5,000 or more. The Head of Marketing or Chief Marketing Officer usually sets this goal. In a small business, it can also be the owner who runs the business himself. In this case, the owner needs to realize what his objective is at the moment: a business goal or a marketing one? It is necessary to separate whether he acts as an owner or as an owner in the role of a marketer. This will help to generate technical objectives for the performance marketing agency correctly.
An example of technical performance marketing objectives is to get 35 new clients from Google paid advertising, 15 new clients from LinkedIn, and 30 new clients from organic search or content marketing.
When an agency is aware of the ecosystem of goals in which it operates, the chances of meeting its objectives increase significantly. Professionals do a great job when they understand more about the ecosystem of the goal system in which they work.
Let's look in more detail at the technical objectives in the context of two different types of business: a niche online store (e-commerce) and a company providing professional services.
Key technical metrics of performance marketing for e-commerce:
Key technical metrics of performance marketing for a service company:
There are two important points.
First, the agency only directly impacts conversion rates if the client is specifically involved in the CRO (conversion rate optimization) process. However, the agency must consider the sales (or conversion) funnel data because its work impacts the number of requests or conversions.
The second is that the agency can operate with secondary objectives. For example, the volume of traffic, raising keyword positions, increasing CTR (click-through rate)... This happens when a business fails to set business or marketing goals. Sometimes, this happens for some reason. Then, the agency works to improve technical results, and the business operates based on the agency's work to define or correct business objectives.
However, the ideal collaboration between business and agency is when the agency and business work together to achieve business objectives through marketing and Internet marketing objectives.