Where to Start with Measuring the Return on Investment for Your Online Marketing Campaigns
One of the most enticing elements of digital marketing is its extreme trackability. Unlike traditional marketing measures where results are “guestimates”, digital marketing can give you solid numbers to prove whether your campaigns are giving you the results you need. But, making sense of the large amounts of data available to you can prove tricky. So where should you start when measuring your campaign’s ROI?
Choose Content Marketing Metrics that Matter to your Business
Back in the day marketers measured the good old ROAS (Return on Ad Spend), CTR (Click-Through Rate), and CPA (Cost Per Acquisition). While these metrics are useful, they aren’t always the top indicators of the success of your marketing efforts.
The key performance indicators you track should line up with the goals that cause the most growth at the lowest cost. A business whose growth relies on converting leads, for example, needs to ensure every marketing effort contributes towards that goal. Their ROI measures will also need to align with that goal.
What Are the Basics of Content Marketing Measurement?
First, choose your KPIs. Second, measure and manage the data. Third, interpret the results for insights and action points to make your marketing campaigns more effective.
There’s so much data you can track, and not all of it is significant in guiding your marketing efforts. How do you know what does and doesn’t matter when tracking data? Start by determining what your most valuable measurements should be and which of the KPIs will support them.
Once you’ve determined these, you can establish performance benchmarks that give your goals substance. Finally, calculate how much it will cost you to execute your marketing campaigns. This number will help you calculate your ROI.
Many of these trackable indicators only show performance and are not connected to revenue directly. So, instead of tracking everything, aim to determine which indicators correlate with the highest downstream conversions (also called conversion or revenue leverage). Only track the data with which you can determine how much revenue your campaigns generated and how much it cost you.
Your data management efforts start with tagging each bit of published content so it can be tracked and compared to your benchmarks. Then comes the data collection. If data is collected too frequently, it hinders your ability to observe patterns surfacing in the data that can guide your future efforts. If you collect data too infrequently, there may not be enough detail to substantiate future marketing decisions and your ROI calculations.
Decide beforehand how often to collect data. You can always adjust timelines ass you go, but a month-by-month comparison is a great place to start. You can then use tools like Google Analytics to create dashboards where you can observe trends and make sense of all the data coming in. There are many tools you can use in this process, and you can even hire professionals who can analyse your data and advise your processes.
Some companies stop at the data collection process but interpreting the collected information and deciding how to act on what you find is vital to the process. You can find great tools on Google Analytics that track the basics, but for more in-depth attention to the who and why, add the latest marketing applications to your arsenal. With tools like AI-based personalisation platforms, you can find out which content pieces your audience is most likely to respond to.
Calculating your ROI
Calculating your ROI Based on Leads
Return on investment is what the boss really cares about. This means your marketing efforts should be substantiated by reports that make the ROI clear and attractive. Calculating your ROI can lead to better marketing results and a bigger budget for greater gains if you can prove the worth of your efforts to your executives.