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How today’s tools make marketing ROI calculation easier than ever

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The words ‘return on investment’ roll off the tongue so easily, but quantifying the results of your advertising spend can be challenging. How do you find out what’s working and what isn’t? And why does it matter so much? 

To quote Montgomery Scott, chief engineer on the USS Enterprise, trying to become a successful marketer without tracking results is like "…trying to hit a bullet with a smaller bullet, whilst wearing a blindfold, riding a horse." In other words, you need vision. You have to see how you’re doing, so that you can make adjustments and do better next time.

 

Traditionally, advertising and marketing effectiveness was difficult to measure. You’d pump money into a TV, print and radio campaign and hope there was a subsequent increase in awareness, which would lead to extra sales. While digital channels have definitely made it easier to measure ROI, it’s important to have a process for measuring success before your campaign begins. Here are the three essential steps:

 

How to measure ROI success

 

1. Establish KPIs such as:

 

  • Unique visitors to website
  • Sales enquiries
  • Completed sales

 

2. Track all quantifiable results including:

 

  • Google Analytics
  • Call centre volume
  • Increase in revenue

 

3. Calculate ROI:

 

  • Deduct expenditure directly related to the campaign
  • Calculate cost per visitor/enquiry/sale

 

Tracking the success of your website

Unless you have an ecommerce site, which lets customers buy online, the value of your website’s contribution to sales requires frontline staff to ask customers if they visited the site before they made a purchase. This is important data, because it measures conversion. To see how many people are visiting your website, what they look at and for how long, you need to use a tracking tool like Google Analytics.

 

Monitoring EDM activity

If you use a platform like MailChimp or HubSpot, you can easily judge the success of an EDM or newsletter. These platforms provide all the data and reporting you need to assess the effectiveness of your communication.

 

Measuring the impact of promotions

A way to test the effectiveness of a specific channel is to run a special offer that is only advertised on that channel, such as a Facebook-only discount for people who like your page. Before you can measure ROI, you need a clear picture of ‘normal’ sales volume. This will help you to assess the additional sales that resulted from the campaign.

 

Surveying attendees after events

Events can drive brand awareness, launch new products and educate customers. If you want to measure the success of your event, collecting the email address of everyone who attends is essential. Then you’ll be able to send them an online survey as soon as the event is over. Consider a product like SurveyMonkey, which lets you reach out to your customers in a way that doesn’t feel awkward.

 

Improve your ROI measurement with a comprehensive calculator

We’ve created a calculator so you can determine your ROI for the media above. It’s part of our e-book of marketing templates that can help set your business up for successful marketing efforts. Download it now: 5 Templates to Drive Marketing Success.

 

 

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    • Digital Marketing Strategy
    • Campaign ROI calculator
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