What Is a Measurement Plan?
To get back to basics, a measurement plan is the strategy a business has in place to make sure their goals are being met. A measurement plan is required in order to determine the KPIs, metrics, and dimensions needed to assess the performance of a business. Analysts report their data by telling stories, and the main characters of these stories include KPIs, metrics, and dimensions.
The Importance of a Measurement Plan
You first must know what kind of data a business needs in order to tell their story. It’s not enough to just have good engineers to collect all the data and analysts to analyze that data. A measurement plan is needed because it’s the solid foundation each business needs to build from. That way, the business can make good, calculated decisions for the analysis process. Each company has a different story to tell though, because each company has a different set of goals and KPIs to meet. These stories, when supplied with the correct data, are what lead to transformational insights.
Four Steps to Create a Measurement Plan
Step 1. Get to know the business. When getting started, you first need to understand the ins and outs of the business, what makes it special or different, and the needs of that business. This is done by having conversations with the clients. This includes all teams that are directly involved in online activity, from marketing to analysts to engineering. In this stage, you should become a powerful ally in helping the business succeed.
Step 2. Define business requirements and goals. Based on those conversations, you create a business requirement list, which contains all of the company’s requirements and goals. It is essential to help clients decide what their business goals are and the other requirements they need to get those goals accomplished.
For example, if a business wants to increase its revenue through marketing campaigns, which is a common and good goal to have, it’s still necessary to get into more detail. It’s important to make sure that you have tracking for all of that information, so the analyst can come in to do their job and tell their story. Therefore, you need to know the business goals and the requirements of those goals.
Step 3. Make a framework. After gathering all of this information, you must make a framework for the measurement plan.
To understand how business goals are performing, you can look at a user journey because it’s the users that achieve the goals. It’s important to understand how a user is engaging with your website/app/product. That way, you learn how you can make them engage with it in a way so that you can achieve your goals.
There can be five stages in the user journey, which may also differ for each business. Five possible stages include awareness, engagement, interest, consideration, and conversion.
By examining the user journey, you can separate the KPIs in a clear way to allow you to see what is going wrong or right in each phase. By the end of the day, it’s you teaming up with the user to learn how to achieve those goals. In this stage, you should also add everything you’ve learned, including all the goals, objectives, and business requirements to the framework.
Step 4. Measure goals and requirements. After you get to know the business, define the goals and business requirements, and create a framework, you start to add all the measures, KPIs, metrics, and dimensions in order to make sure the business is constantly growing and improving. This is where you provide the analysts with all the data they need in order to get those stories that deliver transformational insights.
For example, for a tracking requirement, it would be great to have the KPIs measured on the website and see the campaign click rate. This is known as the percentage of how many people click on the ad, divided by how many people saw it. If you get a big percentage, that means your campaign is where it needs to be. It’s on the correct website and targeting the right people. If your percentage is low, you can go in as an analyst and see what is going wrong and what people you should be targeting. This way, you know what metrics and dimensions you need to measure in order for the company to achieve its goals and be successful.
How a Measurement Plan Will Benefit Your Business
With a successful measurement plan in place, you can build a solid foundation to help you analyze any business. Not only would you educate people within that business, but the consumers as well. This foundation opens up the path to deliver transformational insights and accelerate the path toward revenue growth through brand awareness. As a result, everyone involved will able to move forward in a more positive way.
Are you ready to build a successful measurement plan for your business? Contact us today so we can help you create your story and reach your goals.