If you invest time and resources into your digital marketing strategy, you’ll want to ensure you’re closely tracking your ROI. However, neglecting to track and measure your marketing efforts can leave you in the dark about whether or not your strategies are producing leads, driving conversions and generating sales. Your various campaigns can become difficult to keep track of, so before you can even think about ROI tracking, the first step to staying organized and monitoring your various metrics is to have an effective and user-friendly CRM and Analytics tool.
There are a variety of ways you can track your ROI over time to ensure that you’re increasing revenue. A digital marketing campaign encompasses content marketing, SEO, PPC and social media marketing, among other strategies – all of which will have different metrics which are indicative of ROI.
For your PPC campaigns, you can calculate your ROI by determining your return on ad spend – your revenue minus PPC cost, divided by PPC cost. In order to truly calculate your ROI, however, you’ll need to also consider overhead costs such as time and monetary investment made through marketing and sales, for example.
Unlike PPC, it’s a bit more difficult to track and measure the ROI of your content marketing strategy. However, there are some general tips to keep in mind. It’s important to measure engagement by tracking time on page, and keeping track of how often a user returns to your content. Tracking the role of your content in the sales funnel, with regards to lead nurturing, and measuring how content is helping your bottom line are important methods to track your content marketing ROI.
Your SEO strategy can help you to grow organic traffic and boost conversions. Similarly to content marketing, SEO helps move your customer through the sales funnel . One way to calculate the ROI on your SEO campaign is to determine your CPA – cost per acquisition. While it can be a bit tricky to get an accurate ROI for your SEO efforts, you can measure the value of a conversion in comparison to the costs of achieving that conversion. For example, if you are attracting users through organic search results, and these users go on to convert, you can determine the value of your SEO strategy.
In order to determine your social media marketing ROI, you’ll need to set out clear goals. Social shares, likes and follower counts won’t necessarily provide an accurate picture of your ROI. Instead, focus on measurable goals, such as online purchases, completed forms and downloads, for example. When calculating your ROI, determine your time and monetary investment, and the cost of any tools required to run your social media campaign.
In order to grow your revenue, you’ll need to make strategic investments. Tracking and measuring your ROI for each of your digital marketing efforts will help you to make a seamless campaign and prevent wasting time on tactics that aren’t producing results.