How to Measure Digital Marketing ROI in 5 Steps

Digital marketing

SO YOU’VE launched your own Facebook and Twitter accounts, and started a blog on your company’s website.

Soon enough, you will want to know whether all the effort is paying off.

When it comes to measuring the success of a marketing campaign, there is really only one thing you want to know – did you generate more revenue in sales than the cost of the campaign?

However if you look beyond the bottom line, you’ll learn much more about the strengths and weaknesses of your marketing strategy.

Here are five steps to success:

1. Define a Tangible Goal

“Make more money” isn’t going to cut it. Your goal must be quantifiable. If you want to increase sales…. By what per cent?

2. Know Your Sales Cycle

No business has a 100% sales conversion rate. If the goal is 15 more sales per month and your business has a 5:1 close-rate you actually need 75 additional leads each month.

That means the number of leads is the digital marketing outcome to focus on.

3. Turn your website into a sales machine

Your website has quality content and your social media and SEO campaigns are sending visitors your way.Now what? The website should be built to push users down the funnel. In order to do that, the user needs to know what you want them to do. What is the website’s call to action? If it is an online sales process, point them to a “buy now” or “enroll now” option. If your sales are completed offline, what information do you need for the user to become a lead?

4. Analyse how visitors use your website

If you are basing digital performance on the number of clicks or click-through rate, you’re missing out. Not all traffic is good traffic. With proper analysis, you can also see exactly where your converting visitors are coming from, where they are located, how long they are staying for, how often visitors come back, which pages on your site have been visited the most and much more.

5. Conversion Rates

Just like any other investment, you have to put money into digital marketing to get a return. Say you invested $5,000 in digital marketing for the month and each of your sales generates $500. It’s working and the 15 additional sales you picked up cover the cost and produce a positive ROI of $2,500 for the month.

MORE: 10 Facebook tools to help Australian businesses



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