For some businesses, the problem is not making money but in figuring out the best ways to reinvest that money to grow the company. You might have a successful coffee shop that is handing out hundreds of cups of coffee a day, but unless you turn that extra money into a worthy investment, your shop will remain stagnant.
Return on investment (ROI) is one of the more critical data points in any business strategy but how can you calculate ROI on a digital marketing campaign? Let’s learn how you can figure out your ROI data points, so you aren’t throwing good money down the drain to grow your business.
Figure Out Your ROI Before You Waste Money with Digital Marketing
The goal of any digital marketing campaign is to elevate your business and get a significant ROI. What type of goals you have depends where you currently stand, where you want to be, and what it will take to get you there. Any smart campaign begins with establishing concrete goals. Without goals, you can’t gauge ROI.
Doing the Math to Figure Out ROI
Measuring your ROI for digital marketing compared to traditional marketing is more difficult but is doable. Your goal is to set up conversions (sales, leads, or click-throughs) with a specific attributed value to find this ROI.
For example, you could assign any closed sales that initially issued from your campaign as a percentage of that sale. This is more difficult in some industries than others. If an ad secures you a direct $40 purchase, you can pencil that in. However, calculating the ROI for indirect business needs a value system to calculate its efficiency. This will take some work out on your end.
How many leads or clicks convert to sales? How many digital leads turn into appointments with a chance to close? You must use your history and knowledge of your company to assign dollar amounts or values to your campaign to help you measure your ROI. You might assign $100 to a lead that turns into an appointment or $300 to an appointment that turns into a closed sale.
Once you’ve come you with assigned values, you can use those values to measure success among different avenues of digital marketing including SEO, social media advertising, or a YouTube video campaign. It may take practice, but you can find accurate ways to measure your ROI within the digital marketing world and companies like Altitude Agency who are happy to help you do it.
Choose a Digital Marketer That Cares About Your ROI
A reputable digital marketer will help you calculate your ROI and track sales, leads, and other data as it pertains to your campaign. Companies like ours make their living on turning in positive ROI reports and wouldn’t be able to function if they couldn’t show demonstrable success from a campaign. Use us not just for ideas but for analytics, too.
Any investment in your company is about your ROI in the end. With the help of patience, monitoring, and Altitude Agency you can track your ROI for any campaign directly or by assigning values to different successes. Digital marketing is notoriously fickle so use your ROI and past experiences to make the best decisions moving forward.