Digital marketing is growing widely, and it is very essential to have a good digital marketing strategy to be successful in your marketing efforts. For a brand to stand out in the competition it is very difficult. Marketers are exploring new ways to improve their business ROI (Return on investment). It is always important to measure the ROI of every business to know the success of the strategy. There are many ways to measure ROI nowadays. By knowing the response marketers can redesign their strategies and try new ones that can be more impactful.
Measuring ROI is the best way to identify whether you are using your budget effectively or not and getting a good result for your marketing effort. It mainly measures the profit or loss you generate as a result of your digital marketing campaigns. If you get more profit from your marketing campaigns it means a positive ROI and if you lost money, then you have to think about your strategies. Without proper analysis, it is not good to waste your money on something that is worthless. This article will give you a whole concept of digital marketing strategies that can improve ROI and how can you measure ROI.
How to Measure ROI?
Digital marketing return on investment is not easy to measure. You may have to consider many factors while doing it. The main thing that affects your ROI is the objective of your marketing campaigns. Some marketing campaigns are created to build awareness among customers and some others to increase the sale. If the campaigns help you to give the result you want it will be more successful.
There are some factors you need to consider before measuring ROI
This is a very popular term every marketer should be aware of. The conversion rate is nothing but the number of customers who end up buying products from your website. It is a very important metrics to measure ROI of your business campaign. To measure conversion rate, you need to find out the channels from which your website gets more customers and you need to concentrate more on that particular channel to get a better output. Sometimes it could be a specific device also. Find out what your customers are looking for and give them what they want.
Cost Per Lead
This is another factor you need to know about the whole of running a campaign. You can calculate the cost per lead by dividing the total ads spend by the number of leads or attributes to the campaign. You need to measure this to know how much it will cost you for a new lead.
Lead Close Rate
You can measure the lead close rate where the number of leads generated is being measured. It can help you to measure the profitability of your campaign and the things you have to do to make your campaign more effective.
Cost Per Acquisition
You can divide your total marketing cost by the number of sales generated. By knowing this you can find out whether your business gives you profit or not by running all these campaigns
Average Order Value
Most businesses pay attention to the number of orders and they want to see it as increasing. But what actually matters is the average value of each order. You cannot actually measure the ROI if you do not measure the average order value. If the value is good, then it is pretty much useful for your business expansion.
Customer Lifetime Value
This measures the average lifetime of a customer with your business. It will also help you to analyze the overall value of a customer for your business. When a customer buys the product from your business, again and again, it shows the long-term commitment and it can help you to measure their lifetime value which is useful for ROI calculation.
ROI Measurement Suing Digital Marketing Tactics
The outcome of your campaign will ultimately depend on the type of campaign you are using. There are many options for you to try. But the biggest challenge is to find the right tactics that work for your business model. If you are using metrics to measure email marketing ROI but cannot be used to measure another type of marketing. Just like this, there are different metrics for different types of digital marketing strategies.
Here are some most popular digital marketing strategies and their ROI measurements
Email marketing-: the main factors that affect the ROI of email marketing are open rate, click-through rate, unsubscribe rate, leads acquired, bounce rate, and conversation rate
Social media marketing-: Rate of engagement, click-through rate, leads acquired, new followers or subscribers, etc are the metrics that use to measure social media marketing ROI
Landing pages of website-: Time spend on landing page, total page visitors, engagement rate, actions are taken, new visitors’ rate, conversion, returning visitors, etc are the factors that consider while measuring ROI of landing pages
Blogs-: ROI of the blog is measured by knowing the traffic, click-through rates, unique visitors, returning visitors, actions take, and conversion rate
How to improve ROI of your website
You can improve your digital marketing strategy and get a better ROI by following certain important points. You will get those points from this article. Try to follow them and see a better performance of your business.
The main aim of measuring ROI is to get a clear idea about areas that need to be improved in your marketing. Many marketers ignore the fact that numbers can help to identify the effectiveness of their marketing efforts. There are many easy ways to measure the ROI nowadays using digital marketing tools. You can try the steps given below and see how it can change your digital marketing efforts.
Plan your ROI
It is very important to have a goal before you plan your marketing strategy. Without a certain goal, you cannot achieve anything in business. By planning your business goal, you can work towards achieving a better output through your digital marketing efforts. With the right goal you will have a clear idea about the ROI that needs to be used to achieve a better outcome. Have a clear goal like ‘increase awareness’, ‘improve sale’, ‘better reach’ etc and find out the best strategy to achieve these goals. Make sure to have a SMART goal that is specific, measurable, achievable, relevant, and time-bound.
When you have a goal make sure that it is specific and achievable over the given time. It should also be measurable easily and should be relevant to your business. Without a clear goal, you cannot achieve the success you want. Have a good idea about marketing trends and design new tactics accordingly. Without proper planning and implementation, nothing is possible in digital marketing. You can plan your digital marketing strategy and ROI it can give to your business in advance.
Keep an Eye on KPIs
KPIs or key performance indicators are essential for your business ROI measurement. When you run a campaign with a specific goal there will be some factors that show the performance outcome of your campaign. These important factors are known as key performance indicators. You can keep an eye on KPIs of your marketing campaign which can help you to predict the success and failure of it. You can also know whether you are getting the outcome you expected or not by noting the KPI
While selecting KPIs one thing to keep in your mind is that you have to choose factors that are related to your goals. By knowing the KPIs you are measuring the distance between you and your goal. If your goal is to improve the conversion rate, then you can use the metrics that deal with sales to get a clear idea about it. KPI also help you clear the expectation of marketing team and give them a clear idea on what to concentrate on. They can also find new ways to make these metrics output better by knowing the KPIs in advance.
Trial and Errors Method
Testing is very important to find out the successful strategy for better ROI. You can try new strategies and see the response of the audiences. If you get some positive response it means that the strategy is being more successful. You can also run A/B test to know the successful strategy that can be used in your campaign. It may take some time but can give you a good output regardless of the amount of time you spend on research.
Once you get an idea about the best-performing strategy you can change it as per the favor of your business promotion. You can try various options as per the campaign requirement. The same test won’t work for all the campaigns as the nature and goal of each campaign are entirely different. By knowing working strategies, you can make your campaign more effective and can use these strategies in the future.
Find Out the Ways to Improve
There are many ways to find out the best strategies working for your business. After finding out these strategies what will you do? The best thing to do is to use these strategies and find out new opportunities to expand your business. By knowing what audiences want you can give them exactly what they want. it can help you to make them your loyal followers. Improvisation after finding the fact is very crucial for growth. Without trying something new that is working a business cannot stand out from the competition.
New experiments are always useful and can play an important role in the growth of a business. You can check out the most trending strategy of your competitors and the best way to implement that strategy to your business. For example, if you find out the demographics of people who interested in your brand or the type of device, they are using for the search you can work accordingly while developing new strategies. Personalized business promotions and strategies are more trendings nowadays and it can only be possible by proper analysis. Research well about your audiences and give them what they expect from your brand. This is what expansion means. You will get to know more about it if you got a chance to research well about them.
Make Important Decisions Without Hesitation
Reporting analytics is very important for your business growth. Irrelevant data and reporting should be avoided. Today any kind of data is available, and it is very easy to get good data mixed with bad ones. It is not at all useful to get unnecessary data for your business. To make it possible you need to decide the boundary of your data acquisitions. The best thing is to take a decision only using the required data. Don’t need to get confused with a lot of unwanted data anymore
You can decide from where to collect useful data and use only that data while developing new strategies. It is not a good idea to ask multiple people while collecting all this data. Each person has a different perspective and you can get easily confused with all these sources of information. Know what you need to accept and what to reject. Be prepared to analyze data with the help of a strong team.
The primary aim of every businessman is to develop their business to get a better ROI. It is not easy in this competitive world. Marketers have to work a lot to achieve that goal. First thing you need to have a particular goal and then design the campaign to achieve that goal. When you start to work with a goal everything will be easier.
Digital marketing strategies are not constant. It keeps changing according to the change in marketing trends. The main guiding factor of a strategy is the response of customers. You may have to change the strategies according to marketing needs. To get a better ROI you can do A/B tests also. Work hard and do good marketing research to get succeed in your digital marketing process.