Measuring your ROI: are you doing it right?
Hello! Welcome, In this video, I’m going to cover how you can improve the way you measure return on investment. This will help ensure you build the most effective strategy, continually producing long-term business wins.
Start by choosing one method for ROI measurement.
There are many different channels in marketing, and if each one uses a different measurement approach- how can you confidently understand your ROI?
20% of businesses currently don’t measure their ROI at all, due to confusions surrounding attribution.
Understanding how you want to assign revenue gained to original sources is difficult, especially when multiple marketing efforts may have each played a role.
Choose a first-touch, last-touch or multi-touch attribution model, and make sure everyone sticks to it!
There is no “right” choice- each of these methods offer an insightful understanding of return on investment. The important thing is to actively and consistently measure this figure.
Then plan your long-term benefits
Ask what ROI means to your team. What information does this number give, and how do you plan on using it? Will you use ROI to:
Plan future investments that influence strategies?
Find cost-cutting solutions without hindering results?
Identify channels to award extra budget to?
Discover which channels need to be cut?
As with any data collection and analysis, you need to use this insight to make informed decision. What’s the point in calculating this figure of it’s just going to be presented then forgotten?
A good investment has the power to evolve your daily processes and revolutionize results, but a bad investment can cripple your team’s progress.
Make sure you use this to help mold the future of your marketing strategy and department. Once these questions have been answered, be sure you take action, and follow these initiatives through.
It’s important to do some research into current business benchmarks.
What ROI do marketers in similar business sizes and sectors look to achieve? What is their cost per lead?
These numbers can be hugely insightful. If you’re worried your ROI is poor, you may discover it’s actually just average, proving you’re on the right path to success.
You may equally discover your ROI is far below what it ought to be, so some serious changes need to be made.
This insight will help you look to future investments with a more critical approach, especially when deciding which channels to award more budget to.
For effective ROI measurement- start at the end.
ROI is your end goal- it’s the last figure you’ll calculate after a campaign. Sometimes ROI seems so far removed from every-day processes, marketers don’t give it a second thought.
To motivate your team to improve ROI and encourage continued measurement, use it to set targets. Ask- how much ROI do I want to gain from this campaign?
From there, you can understand how much revenue is required, and how many leads need to be generated.
You can work backward, helping your team understand exactly what they need to deliver to achieve the desired ROI, making this figure something they can aim for.
ROI goes further than marketing. It’s a figure dependant on hard work from multiple people, departments and strategies.
It’s important to ensure your marketing team understand their influence over this figure and the significance of their daily actions.
And speaking of multiple departments, take time to discuss ROI with your sales team.
An investment is easier to make when it’s shared. As marketing and sales move towards the same end goal of acquiring new business, some investments can benefit both teams.
Content assets are hugely beneficial to both marketing and sales, as potential buyers want to engage with them throughout their purchasing journey.
It makes sense for both departments to share the creation costs of these assets as they can both maximize this content to achieve the desired results.
Leads nurtured by content spend 47% more on your product, and a content asset will cost you the same amount whether it’s used by one team or by many.
Sharing investment can help you achieve a higher ROI, whilst giving both your marketing and sales departments collateral to boost their chances of success.
Additionally, your sales team can offer great insight to help you select the best marketing investments. They may tell you that leads generated through PPC are rarely qualified.
This is very valuable information; PPC leads are expensive, and if they’re not even making it into your sales pipeline, you know not to invest in the same advert.
There’s little point making the same mistake twice!
Team up with sales to help ensure you’re measuring ROI in the most effective way, offering deep insight into current marketing performance to ensure future success.
I hope you have found this video useful and learned something new about ROI. Follow this advice, and you’ll be amazed at what you discover!