To maximize your marketing results, you must first understand them.
There are many different ways to measure the success of your marketing. To determine if everything is working, you need to measure your return on investment (ROI).
How do you measure ROI?
ROI is revenues minus expenses divided by expenses. This can get complicated with several marketing campaigns across several platforms.
Keep reading to learn how to measure your marketing ROI and tweak your campaigns to maximize results.
Factors to Consider
While ROI can tell you a lot about how your marketing campaigns are impacting revenue, it doesn’t show the entire picture.
Marketing campaigns are also about building brand awareness, increasing customer loyalty, and maintaining a positive brand reputation.
These are much more difficult to measure because they aren’t simple metrics included in a report. So while looking at a campaign, keep in mind you should assess the entire picture to truly determine the ROI.
Understand Your Business Performance Before Your Marketing Strategy Is Implemented
Once you have marketing insights and data, you can get a clear picture of your ROI. But only if you collect data before you start.
You need a baseline to compare your information to. So while you’re in the brainstorming and planning stages, monitor how your leads, website traffic, and social media engagement are measuring.
This will help you to see clearly what is working and what isn’t.
Decide What Metrics to Track
Deciding what metrics to track is especially important for digital marketing initiatives.
Just because something can be measured doesn’t mean it should be measured. Read it again.
There are a lot of mistakes companies make when it comes to tracking marketing KPIs. And it’s understandable. Insights and data can be overwhelming. And there’s so much of it. How do you know which metrics are the most important?
While social shares and follower counts are great, they don’t have an impact on your ROI. You should only focus on a few key metrics.
- Leads generated
- Cost per acquisition
These four metrics can help you understand the effectiveness and ROI of your marketing efforts. The results can also guide you in making strategic changes to increase ROI.
There are many types of digital advertising strategies. The right information can help your company pick the right direction.
Tracking your metrics and data is easier if it’s organized.
There are many tools and platforms available that measures this information for you, like Google Analytics. Research available tools to choose the right option for your company.
Calculate Marketing ROI
Now that you’ve learned what information you need to accurately calculate your ROI, you can get started!
Many companies find marketing to be a time-consuming part of business operations. Outsourcing to a digital marketing agency is a viable option to ensure you achieve continued success and maximize your ROI.
If you’re ready to partner with a digital marketing agency that can help you measure and maximize your marketing ROI, reach out today.