As Australian SMEs, understanding how your marketing is *really* performing isn’t about vanity metrics like likes or followers. It’s about benchmarking – comparing your results to what’s achievable, and identifying where to focus for the biggest return on investment. Many businesses skip this crucial step, leaving money on the table.
So, how do you actually benchmark? It starts with identifying the right things to measure. We recommend focusing on key performance indicators (KPIs) directly linked to profit. These aren’t just ‘marketing’ numbers; they’re business numbers marketing influences. Think about cost per acquisition (CPA), customer lifetime value (CLTV), and return on ad spend (ROAS). These give a clear picture of whether your marketing is generating profitable growth.
Here are a few practical insights to get you started:
- Industry Averages are a Starting Point: While not perfect, industry benchmarks provide a baseline. Resources like the Australian Marketing Institute and reports from industry associations can offer guidance. Remember these are averages – your goal is to outperform them.
- Competitor Analysis (Ethically): What are your main competitors doing? Analyse their advertising, website offers, and social media activity. Tools can help estimate their ad spend and website traffic. This isn’t about copying, but understanding the landscape.
- Historical Performance is Key: Track your own KPIs over time. What worked well last quarter? What didn’t? This internal benchmarking reveals trends and helps you refine your strategies.
- Segment Your Data: Don’t look at overall numbers. Break down your results by channel (Google Ads, Facebook, email) and customer segment. This reveals which areas are most profitable and where to invest more.
Benchmarking isn’t a one-time task. It’s an ongoing process. Regularly reviewing your KPIs – monthly is a good starting point – allows you to adapt to changing market conditions and optimise your marketing for maximum impact. As you gather more data, your benchmarks become more accurate, and your marketing becomes more effective. Don’t wait until 2026 or 2027 to start; begin benchmarking today to unlock sustainable growth.
The next step? Identify your top three KPIs and start tracking them consistently. Then, research industry averages to see how you stack up. This simple exercise will give you a clear direction for improving your marketing ROI.
