When you’ve been investing a whole lot into your digital marketing campaigns, surely you’d want to find out how much they’re benefiting you. Or perhaps you haven’t started, and you need to market on certain social media platforms at all.
To find out the answers to these questions, you will need to know the return on investment (ROI) for your digital marketing campaigns. Read more to find out what this means and how you can start calculating it.
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What is Marketing Campaign ROI?
Marketing strategies and campaigns are usually considered quite expensive. They are, however, vital to boosting sales. Without them, your company will struggle to receive an audience online, and your clientele may drop.
This is why it’s important to know the ROI of specific campaigns. It depicts the return you receive from engaging in a specific campaign so that you can find out if it’s worth the price or not. Knowing this ROI will allow you to form a digital marketing strategy that ensures your money is being invested in places that bring you the most customers.
How to Measure Your ROI
ROI prevents you from pumping too many funds into the wrong campaigns. Here are several steps you can take to measure your ROI.
Have a Benchmark for Success
Before you look into your ROI, decide what numbers will determine success, and what numbers will not. For instance, reaching 500 new customers every month is a big deal for small businesses, but a failure for larger corporations. Knowing what qualifies as success will provide you with a better understanding of how well your strategies do.
Gather Your Data
The next step is to start gathering data across different marketing platforms. If you’ve paid for an advertising campaign, you will typically receive these numbers from them. The categories will mostly include:
- This measures how many people your post has reached – how many people can actually see your post.
- This measures how many people actually act when seeing your post, which happens through sharing, liking, commenting and more.
- This marks the number of people who visit your page or website.
Monitoring this data will give you a better understanding of how paid social media works, and how your numbers can be boosted with the right marketing strategies.
You can also use online tools (some of which will require payment) to measure these metrics for you.
Convert Data Into ROI and Monitor Frequently
You can use the above tools for your ROI, or calculate it yourself by subtracting marketing cost from sales growth and dividing this value by your marketing cost. This will give you a percentage of how much your investment grew or shrank.
It won’t help your marketing strategies if you only monitor this data every once in a while. You will need to understand the trends that are in play and find out whether any campaigns you currently run are not providing you with enough ROI. If that’s the case, it will be more beneficial for you to cease that campaign.
Have Goals in Place
Now that you have an understanding of what works and what needs more support, have goals in place so that you know where to take your campaigns. Does the ROI reach your standard of success? If not, take the time to reevaluate and set a goal to surpass that level.
Even if your ROI is successful, you may want to expand that reach and do more. That’s a great idea! Set it down as your next goal.
Use the Data to Make Better Decisions
Once you have your goals and your data in place, you can now evaluate what you need to do. Some marketing campaigns may be lagging for months despite your efforts to improve them – you can choose to cut these out.
You may have found out that a certain social media platform provides you with a high amount of engagement and traffic. In that case, come up with strategies to maintain this or even boost your reach. Other campaigns may need more work, so you will have the ROI to guide the decision to either expand or cut them loose.
How Do You Boost Marketing ROI?
If your ROI needs work, how do you improve it? These are some ways you can boost your ROI.
Write Engaging Content
Content drives traffic, especially when it’s relevant to people and is interesting to read. Take the time to produce organic content, which improves your SEO and ensures that more people will find useful information on your page.
Conduct Surveys
You can use surveys to ask people about their customer experiences, or if they found certain information on your site helpful. This will help you learn which platforms have the most ability to transform your audience into buying customers, and will teach you how to broaden your reach.
Use Influencer Marketing
You can always try out influencer marketing. This is when you enlist a popular person on a certain social media platform to promote your products to their followers.
How ROI Shape Marketing Campaigns
Overall, your ROI determines how successful your marketing campaigns are, and shows you how you can continue to improve your reach. Make sure your ROI becomes an important factor when you decide on marketing strategies, and that you monitor your data constantly.
If you don’t find that your ROI reaches your idea of success, for example, you can boost them by writing more content, engaging with your audience, or reaching more people through the help of influencers. Acting on your ROI is the best way to ensure a successful marketing campaign.
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