Whether you’re a marketing newbie or a seasoned pro, data always should lay the foundation of your strategy. Think about it: How can you make the most of your marketing dollars if you don’t know how your campaigns are doing? Successful marketing strategies are based on data, not gut feelings.
The average marketer relies on shallow metrics, like web traffic and lead volume, to measure their success—but these metrics only give a glimpse of the big picture. Sure, it’s important to track these metrics, but you need to dig deeper into your numbers to guide your strategy to success.
If you’re not tapping into the power of data, this is your sign to start. Here’s how to build a data-driven contractor marketing strategy to supercharge your ROI and grow your business.
Why Contractors Need Data-Driven Marketing
We’ve said it before and we’ll say it again: Marketing should never be a guessing game. Big data is a buzzword you probably hear all the time, but it’s one thing to read about it and another to actually implement it. Truth is, most contractors don’t know which metrics to focus on, where to start, or how to put their data into action.
So, how does data play into your marketing strategy? It offers a quantifiable way to track your performance. The right marketing metrics can help you gauge your campaign’s effectiveness by measuring the impact of your campaign on your audience. Sounds simple enough, right?
By understanding how effective your campaigns are, marketing metrics help you maximize your ROI and effectively plan future campaigns. Here’s how.
- Data guides your budget. When allocating budgets, metrics establish the channels that deserve more or less spend based on past performance. This way, you won’t have to worry about draining your hard-earned marketing dollars on ineffective channels that don’t drive conversions.
- Data informs your strategy. Without the right data, your marketing team relies on gut feelings to make critical marketing decisions. Meanwhile, data informs your decisions so you can confidently work toward business goals.
- Data defines your success. Let’s face it: Marketing can be unpredictable. That’s why you need to constantly track results, run A/B tests, and refine your strategy. Instead of relying on trial-and-error to boost your bottom line, marketing metrics can show you whether your campaign is meeting KPIs and driving results.
5 Marketing Metrics You Should Be Watching
In a nutshell, marketing metrics monitor, record, and measure your progress over time. You can measure anything and everything that matters for your marketing success. But before you dive deep into the numbers, you need to understand what you’re measuring and why.
To stay on top of your marketing game, we recommend setting quarterly (and annual) SMART goals for your contractor business. Then, identify the metrics you need to track progress toward those goals.
There are dozens of metrics to track—and an equal number of marketing acronyms to keep up with. If you’re just getting started, here are some key metrics to pay attention to.
1. Cost Per Acquisition (CPA)
Your CPA measures how much you spend to acquire one new client. CPA isn’t static, and it’ll vary based on the specific platform or campaign you’re measuring. For most contractors, CPA will also change throughout the year.
CPA is one of the most important metrics for contractors. Why? Your overall CPA indicates the success of your marketing campaign. At the same time, your channel-level CPA highlights weak points in your budget allocation, helping you maximize your marketing ROI.
2. Cost Per Lead (CPL)
When you’re doing everything right, leads convert into paying customers. So, it only makes sense to calculate your CPL before your CPA.
Your CPL measures the amount of time spent on acquiring each new lead per marketing campaign, channel, or overall. It can help you set smarter goals, boost your ROI, and allocate your budget effectively. Our clients typically build their CPL budgets considering both paid ads and social media monitoring platforms.
3. Customer Lifetime Value (CLV)
Your CLV measures the total monetary gain a client is projected to spend on your contractor services. It’s based on your pricing model, the services you provide, and historical data based on client behavior.
Your CLV is living proof that quality trumps quantity. You need exceptional service, a standout sales strategy, and strategic marketing to maximize your CLV, so you’ll need to focus on retargeting campaigns that target existing clients.
4. Lead-to-Customer Conversion Rate
Maybe you’ve generated a ton of web traffic from social media posts and PPC ads, but none of your leads are scheduling appointments. How do you measure how many leads actually convert into clients?
That’s where your lead-to-customer conversion rate comes into play. A low conversion rate indicates that your marketing team needs to focus on generating more qualified leads. In some cases, boosting your conversion rate can be as simple as creating additional content to plug leaks in your sales funnel.
5. Social Media Engagement
Your prospects use Facebook, Instagram, and other social media platforms to connect with brands and find trusted services. Generally, these platforms are considered top-of-the-funnel channels because they’re primarily used for research.
So, why does social media engagement matter? Even if you have thousands of Facebook followers, they won’t count for anything if they’re not engaging with your posts. With the right social media marketing strategy, engagement can be your ticket to brand visibility.
Run Toward the Fire With Data-Driven Marketing
If you’re not measuring your marketing performance, you’ll never know where you’re headed.
The right metrics can help you identify new marketing opportunities, new pricing strategies, and better ways to connect with your target audience. And there’s good news: You don’t have to spend hours creating Excel spreadsheets to reap the benefits of data.
Whether you’re new to marketing or looking to optimize your current campaigns, our expert marketing team can take the marketing tasks off your plate so you can focus on running your contractor business. Reach out to our team to start capturing more leads and closing more sales with data-driven marketing.