There is one key thing that sets the best marketers apart from the rest and I already spoiled it in the title of this blog: it’s knowing business.
Now, I love marketing and nothing excites me more than a good campaign. I love a good slogan, a high-impact billboard, or a TikTok ad that actually stops me from scrolling.
But there are plenty of campaigns that, while I love them, and might take a screenshot or a sneaky drive-by photo, they aren’t actually that good.
And that’s because — sorry I’m going to use some wanky corporate speak — they haven’t moved the needle.
The best marketing makes a business impact and the best marketers know that.
Good marketing is usually assessed by the creativity of the campaign, the fanciness of the dashboard, and the fluff metrics
Now, loads of marketing bros will go on LinkedIn and tell you that clicks, impressions, and engagement rates are fluff metrics.
I personally disagree. As a marketer those are key performance metrics and they tell the story of your marketing campaign and its success.
BUT, while increasing clicks and impressions do indicate a campaign that’s working… If it’s not bringing in sales and revenue growth, then it’s useless.
This is where marketers can go wrong. We pat each other on the back for pushing boundaries and creating the sort of campaigns that make you think, “Fuck, I wish I came up with that.” We look at fancy graphs in Google Analytics and decide up means good and we call it a day.
The best marketers know that the analytics graph going up doesn’t mean shit if the revenue isn’t going up in tandem.
Leading a digital marketing team, I have had countless times where a team member has come to me, usually a little bit stressed. They’ll say, “Traffic has plummeted and click-through is down; I don’t know what to do.”
My first two questions will always be the same:
- Are conversions down?
- How does the client feel business is doing?
It’s all about the impact on the actual business
I’m not saying to throw your marketing knowledge in the bin or to never worry about traffic dipping again.
But what I am saying is, there is a really solid (and not that difficult) shortcut to success.
Start thinking business.
That means:
- profitability and unit economics
- customer behaviour over time
- product value and pricing
- resource allocation (e.g. budgets, team time)
That’s wanky wording but what I mean is:
- Which products or services make the most money or are most cost-effective to produce?
- How do customers interact with the brand and what does it mean for the marketing campaign?
- Where does the business sit in terms of pricing and how does that translate to the campaign?
- What kind of business is needed or most ideal right now? What will makes the business the most money?
Let’s look at a specific (and essential) example: Customer lifetime value (CLV)
Customer lifetime value is the average value of a customer to a business over the lifetime of their relationship. So, if you’re a real estate agent, it’s not just how much you’ll make from one sale. It’s how much revenue you’ll generally make from one person after they sell, say, three houses with you over the lifetime of your relationship.
CLV is actually one of the most important metrics any marketer should understand.
It answers one of the most important marketing questions: how much is reasonable to spend on acquiring a new customer?
It also informs how big a win can be (if the customer relationship works out). For retailers, that first $50 purchase may seem like a small win.
But if that customer buys into the brand, loves the product, and continues to come back (whether that’s of their own volition or as part of a retention and remarketing strategy, that could become thousands of dollars over the lifetime of your relationship.
Here’s how this all sets you apart
Better budgeting
Knowing what your CLV is and where the profit is allows you to invest budget in the right areas and where to take that budget from.
Stronger prioritisation
You now know that not all customers are made equal and not all channels will deliver the value you actually want. You can be cut-throat in the decisions you make.
Smarter messaging
When you know exactly what drives business, you can make sure your messaging is crystal clear — to drive that exact business.
Measured wins
When you understand business metrics, you can tie your performance back to business impact — ie. we had more conversions in this part of the business that we know drives growth.
—
The best marketers think in business terms. Yes, keep trying to create the next best campaign… Just make sure it’s in line with what’s going to make the business money.