The Secret to Ecommerce Success: Measure Marketing Like This

In this episode of Sharpen Your Skills, we're going deep into one of the most critical topics in ecommerce today: marketing measurement.

If you're a marketer, business owner, or finance leader trying to improve your marketing effectiveness, this discussion is for you. We kick things off by dismantling the idea that marketing metrics should be separate from financial metrics. Everything should be evaluated on its contribution to shareholder value, meaning …

Financial impact is king.

Join us as we explore the “hierarchy of metrics,” four critical layers to effectively measure marketing performance.

From focusing on contribution margin dollars as the key business scoreboard, to understanding the interplay of revenue, ad spend, and customer acquisition metrics, we reveal a comprehensive way to align marketing goals with business health.

Our breakdown covers:

• Why contribution dollars, not percentages, are crucial for tracking monthly performance.
• How to manage your marketing using business, customer, and proxy metrics.
• The gold standard for channel-level evaluation using incrementality testing and geoholdout studies to refine ad spend strategies.
• Tools and tips for achieving a balance between first-order profitability, volume growth, and financial outcomes.

Key takeaway: Measure marketing efforts by their financial impact, optimize for contribution dollars, and use sophisticated metrics to align your efforts with your company’s bottom line. This is your blueprint for building a financially robust marketing strategy.

As always, stay tuned for more episodes of Sharpen Your Skills as we continue exploring strategies that empower you to make smarter business decisions! In the meantime, grab our Incrementality Starter Sheet …

Together with …

• Parker offers ecommerce credit and banking services with intelligence.
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