To See Results, Entrepreneurs Must Choose the Right Marketing Metrics For marketing to be effective, businesses need to befriend data and ensure they are measuring the right metrics for their business.

By Daniel Newman

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.


Many small business owners still equate "better sales" with gaining more customers and revenue. At the face of it, it seems like an easy equation, right? However, when it comes to marketing, they find it difficult to attach a significant ROI to their marketing efforts. Result? They ask, "Did we spend those marketing dollars wisely?

The problem is, most small businesses don't use data for their marketing activities and even when they do, they don't use the right data. Many reports and surveys show that SMBs are adopting new marketing strategies, but if you put these numbers aside and look around, you'll find data-driven marketing remains a key challenge for SMBs.

Related: 3 Ways Customer Data Allows for Pinpoint Marketing

Some SMBs try to engage in low-cost (read: subpar) marketing efforts. They either hire an intern or pick someone with some basic knowledge of digital marketing from their employee pool and set them to the task of taking care of their social-media channels or digital-marketing campaigns. Can such slip-shod digital-marketing efforts produce the desired results? Often, the answer is no. For marketing to be effective, businesses need to befriend data and ensure they are measuring the right metrics for their business. But first, they need to set clear goals for their marketing conversions.

To land a "marketing conversion," you need to employ the right tactics to persuade your prospects to respond to your call to action. To begin with, it's important for businesses to understand what type of conversion they want to achieve through each marketing action. Are they looking to gain visibility, bring in new leads, create end-to-end customer experiences or is there something else? The biggest problem for most entrepreneurs and small-business leaders is they don't know what a conversion means to them or their business.

Related: Measure the Success of a Marketing Campaign Through the Product and the Brand

For instance, if getting people to your site is your goal, then your efforts should be towards getting that done. If it's getting people to download a white paper, then you should focus on crafting a call to action that encourages a prospect to do just that. If you are more focused on customer service, then your marketing efforts should be crafted around creating better content and helpful videos, as well as more responsive social-media actions.

In order to succeed at conversion-oriented digital marketing, you must follow these steps:

  • Understand your audience.
  • Identify your goal.
  • Assess the most suitable channels - where is your audience hanging out?
  • Set the right metrics.
  • Collect and measure relevant data against the set metrics.
  • Strategize marketing activities around the data insights and key business objectives.
  • Measure the efficacy of specific marketing actions.
  • Repeat or tweak as necessary.

Marketing involves a lot of actions. If don't have a clear, strategic approach and aren't 100 percent clear on your goals, you will likely end up disappointed. After all, at the end of the day, the conversions you end up getting are only as good as the effort you put into targeting them.

Related: 5 Attributes the Modern Marketer Must Possess

Daniel Newman

President of Broadsuite

Dan Newman is the president of Broadsuite where he works side by side with brands big and small to help them be found, seen and heard in a cluttered digital world. He is also the author of two books, is a business professor and a huge fan of watching his daughters play soccer. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Related Topics

Money & Finance

How to Know If Your Business Is Profitable This Very Second

It's important to periodically take stock of your business status, but don't wait until the end of the quarter or Tax Day to know. Too many decisions you need to make depend on your profitability. Here are things you should be doing regularly so that when you need to know where you stand, you know.

Social Media

With This LinkedIn Algorithm Change, Your Best Posts Could Reach New Readers for Years

It's one of many new features rolling out on the platform in 2024.


Save Big on Airfare with a Dollar Flight Club Subscription for Less Than $60

This discounted Dollar Flight Club subscription can turn dream trips into reality.


The CEO of Catholic Prayer and Meditation App Hallow Says Founders Need to Be Part of Something Bigger Than Themselves

On this episode of "The CEO Series," learn about the soulful journey of Hallow's CEO and founder Alex Jones.


Your Boss is Watching You. Here's Why Monitoring Workers is a Two-Edged Sword

Companies increasingly use technology to track and monitor their workers, but this doesn't always improve performance or morale. Employers can — and should — monitor their workers so everyone can benefit from the process.

Science & Technology

AI May Not Take Your Job, But Someone Using AI Likely Will — Here's Why.

Artificial intelligence is becoming ubiquitous across marketing and public relations agencies. These tools can increase productivity, but there are risks to consider.