It’s really important that you measure your digital marketing ROI across all the different channels that you’re working on so you can work out where to put your focus and where to put your budget in order to make the most profit. To walk through some different ROI metrics you want to be tracking, the calculations involved and how to make decisions based on the data you are finding are what you need to focus on. Daily, you come across businesses making all sorts of ridiculous marketing decisions when they get fixed on other metrics like follow accounts or even respect in their industry.
The sole purpose of marketing should be to generate an ROI which is why the calculation that you are going to witness further will be at central of the digital marketing decision-making.
How to improve ROI in digital marketing?
How to improve ROI in digital marketing has always been a question because most of the time your thoughts are divided into other things more than focusing on how to generate more ROI.
Digital Marketing ROI = (Sales Growth – Marketing Cost) / Marketing Cost
By applying this formula you can check where you stand if your ROI is 5:1 which means you are doing well with your business and have earned 5 times more than what you have spent. The same goes when it is more than 5:1 for example if it is 10:1 or 20:1 then it means you are doing totally great. But if your ROI is 2:1 or 1:1 then you need improvement in certain areas.
What tool you need to use for tracking ROI?
You need Google Analytics that’s all you need to be using for calculating digital marketing ROI tracking, in which you have to set up your extremely important conversion tracking. Now there are a couple of metrics that you want to have in mind before start looking at marketing ROI and those are average order value (AOV) which is on average how much somebody spends when they buy from you. Then you need to get the average lead value (ALV) which is done by multiplying the average order value by the sales conversion rate.
By this, you get a bigger picture of how your campaigns have worked on people which led them to buy from you or even stop by your site. Google Analytics is exceptional in all sorts of terms as it tracks all the sources of traffic that are driving towards your website. The most amazing feeling you get is when you can witness the most visitors and value from the acquisition tab in Google Analytics where you can see social media, organic search or other channels.
Objectives to measure digital marketing ROI:
Align your goals with your plan of action: Acknowledge what goal you need to achieve with your designed digital marketing campaign, ROI in digital marketing can only be beneficial when you are focused on your goals in terms of sales, lead generation, and brand awareness.
Keep track of marketing expenses: Keep a check on the expenses you are spending including advertising spend, software tools, creative ideas and efforts you are putting into.
Generate exclusive content: With creativity, you can conquer organic traffic and higher ROI, by adding things which will compel people to click on the given information. For example, grab this offer now and click a link to read more about it. Furthermore, you can add customer reviews and FAQs options which will create an engaging bond between you and the customer.
Introduce exciting perks to your customers: The interest might fade away if you stop generating new ideas for your product or service, presenting the same ideas may not interest the customers as they always want something new. If you want to sustain and make higher ROI then you need to offer a few perks to the customers as well such as free shipping, discounts, coupon codes, special offers etc.
At foundry fusion we ensure to higher your ROI in digital marketing with our planning and statistic techniques. We know which campaign will interest the customers the more through which we attracts them, with google analytics and other software tools we secure your business by generating high ROI.
