A marketing agency has claimed that many of its industry peers are failing to deliver value for their clients by not providing data metrics that have a meaningful impact on a business’ bottom line.
“Too many digital agencies across the country are getting away with substandard work by reporting on egotistic metrics as opposed to metrics that impact the bottom line,” said Binh An Nguyen, the managing director of Adelaide-based agency Market Ease.
“Followers, likes, shares and clicks can all be manipulated and purchased. They don’t really make any difference to the bottom line.
“It’s the conversion metrics that have an impact. Many businesses get caught up in the excitement of getting a great number of visitors or additions to their database, but they are not worth anything if they don’t convert.”
Mr An Nguyen, who founded the business in 2006, said that it is important for businesses to know “which part of your sales funnel is leaking” to be able to address problem areas and deliver optimal returns on marketing investment.
He said that doing so requires a look at both macro and micro conversions, rather than simply one or other in isolation.
According to Mr An Nguyen, macro conversions are the end result – generally the number of sales made – while micro conversions involve a range of other desired actions that lead customers to the end goal.
Using the example of a car dealership, he said the macro conversion is the number of vehicles sold, while micro conversions could include the number of online enquiries received and the volume of test-drives carried out – all of which contribute to the macro goal.
Mr An Nguyen suggested that all businesses ask three key questions of their marketing agencies:
- Are you currently tracking macro and micro conversions?
- How many of these conversions can be directly attributed to your marketing?
- Can you show me these results in Google Analytics?
Multiple attempts were made to contact the Australian Marketing Institute (AMI) – the peak body for marketers – for comment on Mr An Nguyen’s claims, but the institute did not respond.
Earlier this year, another marketing specialist suggested that businesses are increasingly falling into a trap of wasting “lots of small amounts of money on paid content”.
“Facebook has made it so easy to spend money on its platform,” said Matthew Howells-Barby of HubSpot.
Adam Zuchetti is the editor of My Business, and has steered the publication’s editorial direction since early 2016.