Organizations have to make a lot of tough decisions right now. Every dollar in the marketing budget faces scrutiny, and digital media spend is mainly under the spotlight. With that in mind, every digital marketing leader must maximize the effectiveness of every media dollar spent for this year and next. The only proper way to maximize your media budget is to understand how every media dollar contributes to generating high-LTV customers. This means instrumenting a connection between your ad platforms (Google, Facebook, LinkedIn) and your internal systems to build what we call “full-funnel visibility.”
Traditional digital marketing teams organize their strategies around a particular digital channel, with a narrow focus on generating upper and middle funnel activity metrics like clicks, leads, and trials. If the Digital Marketing Team can only track performance to the middle of the funnel, it creates a ton of challenges to maximize the effectiveness of the overall media budget, including but not limited to:
- Optimizing to a mid-funnel metric is likely generating both high and low-quality leads
- The team is blind to what campaigns are truly driving customer acquisition
- In longer-lead sales cycles, we have found that most teams have NO visibility once a lead is passed over to the sales organization
- Additional down-funnel signals are not being fed to the ad platforms to optimize automated bidding further
For the rest of FY2022 and 2023, Digital Marketers will be asked to do more with less. Winning in a highly competitive market, especially when faced with aggressive growth targets, leaves little to no room for so-so leads and underperforming media. Making sure the Digital Marketing Team is enabled with visibility up and down the entire funnel should be a top priority for any Digital/Growth leader. Here’s why it’s so important:
- The Digital Marketing Team should understand performance across each stage in the funnel: Campaign → Click → Lead → MQL → SQL → Opportunity → Customer
- This data will allow them to optimize their campaigns/media investment towards what the broader organization cares about (customers, not clicks)
- By optimizing towards these down-funnel metrics, lead quality AND customer LTV will rise
- By feeding these down-funnel signals back into the ad platform, the team will be able to take better advantage of automated bidding
- Google + Facebook will “learn” based on the signals that are shared, and conversion rates will improve over time
So we ask, is your team organizing, synthesizing, and making intelligent media decisions based on the performance of your entire funnel? If not, reach out to one of LQ Digital’s Growth Experts to discuss how we enable our clients with full-funnel visibility so that we can make the cross-channel media decisions that drive the highest marginal return (LTV) at the lowest marginal cost (CAC), on their behalf.
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