HOW TO MEASURE ROI WITH DIGITAL MARKETING
Digital marketing has become the new normal in this modern era due to the invention of technology, smartphones and the internet. The world is online and businesses now operate online. ROI simply stands for Return of investment. Measuring ROI is complex in a way that the ROI metrics that work for others may not work for you. It is important to measure your ROI of digital marketing because it tells you whether you’re getting your money’s worth from your marketing campaigns.
Running any kind of marketing campaign without measuring the ROI is a huge gamble since you have to know if your digital marketing strategies and channels are working or not. First things first, you need to know what ROI means to you and your business .Does it mean a new Lead for you, or a new Signup, or a Sale on your website , or just increase in traffic on your website?
Measuring your ROI with digital marketing depends on what digital marketing channel you choose to work with. It could be email, social media, content marketing and so on. Below are some of the factors to guide you in measuring your ROI.
- Revenue / Cost per acquisition
- Revenue / Cost per lead
- Increase in brand value / Cost incurred on brand awareness campaign
- Customer lifetime value
- Brand consideration – for e.g. likes in a social media post for each penny spent on it
When looking at any of the above factors, you have to ask yourself the following questions
- How many of these conversions became quality leads that led to pipelines? What is my pipeline-to-cost ratio for this campaign? For this quarter, month, etc.?
- How much revenue did this campaign generate? At what rate?
- How much did each email, open, click, advertisement, and conversion cost? How much did it earn?
- Where can this campaign improve to help these ROI metrics grow?
Make sure you look at the right results for your digital marketing, table them and be able to calculate your losses and profits which will guide you on your way forward. Also, there are very many tools like Hubspot, Adstage, Google Analytics and many others that can also aid you in measuring your ROI with digital marketing. When using these tools, the following questions can help to guide you.
- How many people are visiting your site
- Where your visitors live
- Which devices they are viewing your site from.
- Which websites are sending you referral traffic
- Which Marketing tactics are driving the most traffic to your site
- Which pages on your website are the most popular
- How many visitors you have converted into leads or customers
- Where your converting visitors come from and go on your website
- How you can improve your website’s speed
- What blog content your visitors like the most
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