Marketers want to know that they’re using their time efficiently. Nurturing leads is important, but it’s a delicate balance between how much you spend on each lead, versus how much revenue each lead could potentially bring in. You’re wondering if your efforts are worth the resources that you put into them, and it’s an important question to ask. In today’s highly digital world, it’s getting easier to track marketing campaigns, but knowing exactly what to look for can help companies know the effect that their marketing efforts are having on their bottom line.
ROI stands for return on investment, and digital marketing ROI is all about tracking the results of your marketing campaigns to see how cost-effective they actually are. As a marketer, your time and effort are valuable, so having statistics to back up the ROI of your marketing campaigns can let you know that you’re using your resources efficiently. You want to spend as little as you can to have the biggest impact possible.
There are different ways to track your ROI, but it’s necessary to keep in mind that the way you measure the success of your campaigns will depend on which marketing tactics you are using in your campaigns. Tracking and measuring social media campaigns is different from tracking and measuring email campaigns, and so on.
In order to effectively measure your digital marketing campaigns’ ROI, there are a few important terms to understand. Some of the terms below are KPIs (key performance indicators), and can help you track your progress.
Before you can decide which metrics are the most effective for tracking your campaign, take a look at which marketing tactics you’re using. For example, if you’re trying to track the success and measure the ROI of an email campaign, it’s important to take a look at the email itself. What was the open rate, the click-through rate, and the bounce rate? Did anyone unsubscribe from your email list? Where there any conversions or any leads acquired?
When looking at a social media campaign, you can specifically track the engagement rates of your post (i.e. likes, shares, comments). How many people clicked on your link? Did any of them convert? You can also count if you acquired any new followers.
Landing pages are a little different. Using a tool like Google Analytics, you can track the traffic to your site and see how many of them were unique vs returning visitors. How many people are viewing your pages, and how much time are they spending on your site? How do people flow through your site? Track what actions they take while on your site, and how many conversions were made.
When it comes to blogs, like websites, you’ll want to take a look at metrics like traffic, links clicked, time spent on each post or page, unique and returning visitors, actions that are taken, and conversions.
When tracking these metrics, looking at long term trends can be helpful. If you compare your data from month to month, it might not take into account holidays, seasonal fluctuations, or other factors. Tracking your data and comparing it year to year can give you a clearer picture of what’s going on overall.
Finding the right balance in your digital marketing strategy can be tough. You want your ROI to be as high as possible, so use the key performance indicators and tips above to find out exactly how your strategy measures up.
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