Marketing budgets are getting tighter. Before the pandemic, businesses typically spent about 11% of their revenue on marketing. Now, in 2024, that number has dropped to just 7.7%.
When budgets shrink, marketing is often the first to get cut. Why? Because many business leaders still see it as a cost rather than an investment. If marketing teams want to prove their value, they need to show how their efforts drive long-term business growth—not just short-term engagement.
The Problem With Vanity Metrics
Too often, marketing teams measure success only after a campaign ends. They scramble to find numbers that look good in a report rather than ones that truly reflect business impact.
Take email click-through rates, for example. Seeing a high number might feel like a win, but it doesn’t tell the whole story. Did those clicks lead to actual purchases? Were those customers influenced by other touchpoints, like social media, an ad, or even a word-of-mouth recommendation?
New customer sign-ups can also be misleading. If someone only signs up to grab a 10% discount and never buys again, are they really a valuable customer? Not necessarily.
On top of that, many businesses struggle with messy customer data. Studies show that up to 28% of customer records contain errors—wrong names, outdated addresses, duplicate profiles. Some companies don’t even have a central system to track customers across different channels, making it nearly impossible to measure what’s working.
So how can marketers cut through the noise and measure what actually matters? It starts with a shift in mindset—moving from reactive reporting to strategic measurement. Here’s how:
5 Steps to Measuring Marketing That Actually Matters
1. Define What Success Looks Like
Forget clicks—what does long-term success mean for your business? Every company has a different answer:
- A travel agency might want customers to spend more on upgrades and extras.
- A retailer might prioritize customer loyalty and repeat purchases.
- An insurance company might focus on reducing customer churn.
Whatever your goal is, your marketing strategy—and the way you measure success—should align with it.
2. Choose Metrics That Actually Reflect Those Goals
Once you’ve defined success, you need the right metrics to track it. But be realistic—what you can measure depends on your data.
Some businesses have real-time access to sales, customer journeys, and engagement. Others may need to put in extra work to gather a complete picture. Be cautious of misleading metrics. For example, “Recency, Frequency, Value” (RFV) can make discount-only shoppers look valuable when they actually contribute very little profit.
3. Map Out Every Customer Touchpoint
Customers don’t just interact with your business in one place. They might see a social media ad, get an email, hear a podcast mention, or receive a print mailer before making a purchase.
If you only measure the last click before a sale, you miss the full story. Instead, use a match-back strategy—a method that traces a sale back to the most influential marketing channel.
4. Test and Validate Your Approach
Your data is only as good as its accuracy. Before making decisions based on metrics, put them to the test:
- Check data quality: Can you track customers across multiple channels? Are there errors or gaps in your system?
- Validate targeting: Are you actually reaching the right people? One way to check is by using a control group—compare campaign results between your targeted audience and a randomly selected group. If your targeting is working, the right audience should perform significantly better.
5. Set Realistic Checkpoints for ROI
Not all campaigns deliver results overnight. Some industries take weeks, months, or even years to see a return on investment.
- A jewelry brand might see a spike in website traffic after a campaign, but it could take months before those visitors turn into buyers.
- A cruise company might generate interest right away, but actual bookings may not happen until customers have saved enough money.
- An insurance company will likely see conversions tied to customer renewal dates.
Instead of expecting immediate results, set realistic measurement intervals that fit your business model.
Marketing Needs to Prove Its Worth—Now More Than Ever
Gone are the days when a creative campaign was enough to justify marketing spend. In today’s economy, every dollar needs to show a return.
If marketing teams want to keep their seat at the table, they need to prove they drive real, measurable business growth—not just short-term engagement. By following these five steps, marketing leaders can shift from reporting vanity metrics to delivering real insights that help secure budgets, demonstrate impact, and ultimately drive long-term success.
Final Thoughts
Marketing isn’t just about creativity—it’s about impact. The teams that can prove their campaigns drive real business value will be the ones that thrive, even in challenging times.
Are you measuring what really matters?
By Sam Wright – Head of Media Planning, Sagacity