5 Steps Important For Starting The Measuring Marketing ROIby Hello Blog SEO Executive
5 Steps Important For Starting The Measuring Marketing ROI
In basic terms, ROI is the efficiency of a marketing action investment. It measures the quantity of an investment return, compared to the price of the investment. The first thing you should consider is your goals: to understand what your ROI is, you need to know what you expect to get from the digital marketing campaign. What is the purpose? Do you want to generate leads, close new customers, and rehire existing customers? Setting realistic goals and establishing key performance indicators (KPIs) related to those goals is critical.
Depending on the needs of the business at the time, the metrics to measure ROI may differ.
Here are some of the main types of KPIs that marketers typically measure:
Based on overall performance: unique users, users, page views, duration of visit, page views per session, potential customers, new newsletter subscribers, most viewed content, bounce rate.
Based on traffic sources: direct or referral traffic, organic search, SEM traffic, newsletter traffic.
Depending on the campaigns: CPM, CPC, conversions, bounce rates.
Based on channel l: website, blog, social media, search engines
How to determine your ROI?
You can find many tools on the Internet that provide campaign statistics. For example, expert companies offer analytics tools to help their clients evaluate and monitor their marketing campaigns' success. You will find all the statistics and details of the campaign and the possibility of exporting them to an Excel file.
All of that data indicates where your digital marketing efforts are succeeding, what matters to your audience, and where you need to make changes or invest more money. Expert measures and tracks in real-time, without having to wait until the end of your campaign to dump the results. This helps to get more accurate ROI calculations.
Other Ways Marketers Can Measure Performance and ROI
There are several ways to calculate ROI. The simplest formula anyone can use is the following: (Total Investment - Marketing Investment) / Marketing Investment, so in more basic terms: ROI = (Revenue / costs) / cost.
However, there is a more accurate way to calculate RO. This formula includes another component: the customer lifetime value (CLV). (It is simpler than you think). The CLV is a metric that determines your company's total net profit from a specific customer. In a way, it predicts the future.
The final formula is the following:
ROI = Total lifetime value - Marketing investment (total-annual spend) / Marketing investment
Don't forget that the best part of digital marketing is that everything can be measured. Simply put, controlling your ROI can give you back the knowledge you need to make your marketing more efficient.
Compare today with tomorrow
Imagine that you are starting a social media campaign under Social Media Services Mumbai and have not given any to start establishing metrics and KPIs. You make an initial investment, and in three months, you will be back to analyzing the data and discover that, since the social media campaign started, the number of customers has increased by 10%, the company's average ticket has gone from 60 to 100 dollar, and that general revenue was increased by 3.6%.
This is a sign that your campaign generates results for the company and that your efforts are indeed paying off. The ROI will be reflected in how much the SEO Services Company, Mumbai, investment contributed to the company's overall result, that is, to the 3.6% growth.
In conclusion, it isn't easy to run any type of marketing campaign without measuring ROI. To do this, you need to keep a close eye on the campaign and analyze it to adjust and create marketing strategies that keep customers engaged and increase conversions.
Created on Oct 12th 2020 14:01. Viewed 54 times.