The Measurement plan is a way to explain what we are talking about when we use the buzzword “analytics”. Consider this strategy your GPS, which will guide you through the confusing maze that is data and market trend.
The plan’s core is to master clarity, and not just the most complex algorithms or the most impressive metrics. Yes, clarity. It’s that one word which is as refreshing to hear as your cold morning brew. In order to create an effective measurement plan, you must focus not on capturing all the data but rather only those that are relevant for your business.
Let’s go back to the basics. A measurement plan is often created by defining a goal. Vague? Vague? Your business wants to grow online sales by 20% over the next quarter. Your measurement plan outlines specifics – what online consumer behaviors lead users to make a purchase. Or, which marketing touchpoints they interact with most before clicking on the buy button. It’s similar to putting a puzzle together. You have the end picture in mind, but must first sort out the sky.
Integration will play a vital role in the future. Back in the day, business departments hoarded information like squirrels. In the past, sales teams did not have a clue about what was going on in the marketing team. Modern measurement plans promote the integration of data silos. Imagine beans spilling from a taco. That’s certainly not a pretty sight to behold at the dinner party, right? Integrated systems can prevent data from spilling and getting lost between departments.
But choosing the right metrics is often similar to picking apples at an orchard. You want metrics that drive performance, not those that look good but don’t taste great. Metrics that directly correlate to growth and profitability, like customer lifetime value and customer acquisition costs are typically chosen. These aren’t simply numbers. Instead, they are the whispers from the market that tell you if you’re on the right course.
Next, businesses are faced with the challenge of analyzing these data. This is often a mistake: too much data, not enough insight. Sound measurement plans emphasize actionable insights. You might think about this: if you find out that 8/10 customers have jumped ship before finalizing an order after a website overhaul, it could be due to something with the new design. This is a valuable insight, much better than ten different pie chart outcomes for visitor demographics.
Then comes the integration of these insights in business strategies. This is where you breathe life into the numbers that you have collected. If your analysis shows that your evening website traffic is dominated by people between the ages of 25-35 who are procrastinating on their workday, then perhaps you should adjust your ad schedules for these hours to improve engagement. When you act on your insights, a stagnant pond becomes a flowing river of strategy.
Final point: A measurement plan isn’t just a once-off. It’s a perennial. Businesses change and market dynamics shift, so what worked the last fiscal year could be an outdated theory now. Regularly revisiting your measurements plan is less a decision and more of a necessity. It’s like replacing the spices in your pantry regularly. Would you want your Thanksgiving dinner to taste like it did last year?