Getting a handle on what your true marketing ROI is can be tricky at best, and it’s a problem that plagues almost every business. Combing through the data across multiple channels, making sure that all your attribution metrics are firing correctly, figuring out exactly what the “last touch” was can be mind numbing if your tracking is out of order. So what can you do to get your ROI metrics under control? How can you finally crack the ever elusive code of marketing ROI? More importantly, How can you maximize that ROI?
First, start with goal setting. Your key performance indicators, or KPIs, need to have a goal attached to them to make any sort of sense. It’s great to see the numbers going up, but is that tied to any baseline? Let’s use pay-per-click as an example. Seeing an extra 200 or 300 clicks a month sounds fantastic, but if you’re paying 1.5 times the amount that your competitors are, without equal conversions, you could theoretically be losing money overall. Setting a goal which takes into account how many clicks you’d like to get, for what cost, that yields a proportional number of conversions will give you a far more honest idea of what your ROI is. Ezzey’s Ross Denny recently spoke about it on Martech.
“Figuring out how to maximize ROI isn’t easy. Even if you have all the data in the world, you have to know which data matters. Any marketer can show that a company is moving the needle on a dozen KPIs, but if those aren’t the right KPIs, the needle movement isn’t affecting the organization’s bottom line at all.
So where do you start when you want to develop a marketing ROI process that counts? You must first decide which marketing goals are most important to your business. Are you interested in customer acquisition? Customer retention? Site and content engagements? This digital marketing infrastructure discussion has to happen before you can roll out any marketing campaigns. After all, by establishing goals and keeping objectives in mind, you can more easily figure out which marketing levers or attributions you should be measuring for success.”
Read the full article here.
Tracking and maximizing your marketing ROI correctly are an integral part of your businesses success in the short, mid and long term. It doesn’t matter which channel you are marketing on, setting goals and having the infrastructure in place will put you on a path to get the most out of your budget. You no longer have to approach marketing as “Spray and Pray”, but as a highly targeted machine to drive revenue. No more guessing which 50% of your marketing is actually working.
If you’d like help with properly tracking and maximizing your digital marketing ROI, and you’re ready to get to the truth of your numbers, we’re here to help! Contact us today!