3 Solutions for Businesses Struggling to Understand the Work of a Marketing Agency

Navigating the world of digital marketing and understanding how it directly impacts your business can be overwhelming. Many businesses struggle to grasp the full value a marketing agency brings, and this can lead to communication gaps, misaligned expectations, and missed opportunities. But fear not—below are three practical solutions that can make this process more transparent and effective for your business.

1. Define a Clear Goal with a Measurable Number

One of the biggest challenges businesses face when working with a marketing agency is aligning on a clear objective. The solution? Define a single measurable goal, such as increasing subscriptions, boosting sales, or raising brand awareness. This number becomes the north star for both your business and the agency, keeping everyone focused and on the same page.

Why does this work?

• A measurable goal creates clarity and reduces confusion about expectations.
• It helps both sides track progress and stay aligned with the broader business strategy.
• With a goal in mind, every campaign, activity, and piece of content is designed to achieve that number, improving overall results.

For example, if your target is to gain 1,000 new subscriptions, your agency knows exactly how to design a marketing campaign that prioritizes customer acquisition.

2. Establish a Roadmap with Key Performance Indicators (KPIs)

After setting a measurable goal, the next step is to build a roadmap backed by KPIs (Key Performance Indicators). These metrics help determine what strategies and activities are contributing toward your goal and which ones aren’t.

What does a roadmap with KPIs accomplish?

• It allows businesses and agencies to evaluate which marketing efforts are working.
• Underperforming strategies can be identified and removed, while high-performing ones are expanded.
• This approach leads to continuous improvement, ensuring resources are effectively allocated toward reaching your goals.

For example, if one campaign generates more leads but another underperforms, KPIs like click-through rates and conversion rates will guide decisions on where to invest more resources.

3. Analyze ROI: Customer Acquisition Cost & Customer Retention Cost

Finally, businesses should regularly analyze the return on investment (ROI) in terms of Customer Acquisition Cost (CAC) and Customer Retention Cost (CRC). CAC tells you how much it costs to acquire a new customer, while CRC highlights the resources needed to keep them engaged. By evaluating these metrics, businesses can assess how well their marketing efforts are contributing to profitability.

Why is this important?

• It allows for smarter budgeting decisions by showing the actual impact of marketing efforts on profits.
• Helps identify areas where cost savings can be made while still driving growth.
• Understanding these metrics ensures that you are not only gaining customers but keeping them—both of which are key to long-term business success.

For example, if your CAC is higher than the revenue generated by a customer, adjustments must be made to the strategy or budget to ensure sustainable growth.

Conclusion

Understanding the work of a marketing agency doesn’t have to be confusing or mysterious. By aligning your business with clear goals, a roadmap filled with KPIs, and ROI analysis, you’ll have a strong foundation for growth and collaboration. Remember, digital marketing is not a guessing game—it’s a calculated effort driven by data, strategies, and constant evaluation.

Be sure to watch the embedded video where I break down these solutions in more detail, offering practical insights that can help you take your business’s marketing to the next level!