Techniques to Measure and Improve Your ROI
Many people think digital marketing is all about viral content and engagement. We all give importance to these buzzwords to attract more traffic. But these elements don’t tell the whole story of successful digital marketing. These two options alone can’t describe how other factors like time affect the bottom line of your company.
According to the research, approx. 70% of people Google about a company before purchasing products or services from them. This is the reason why all types of businesses from startups to large businesses invest in this sector.
Any business owner wants to measure the return on investment or ROI from various ways. Here comes digital marketing because it provides a huge amount of data to calculate your Internet marketing ROI.
Read this article to the end to determine the ROI. This article will help you understand the process of measuring the digital marketing ROI for channels such as email marketing, search engine optimization and pay-per-click advertising. If you want to increase traffic on your business website, then contact any professional digital marketing agency in OKC.
What is Digital Marketing ROI?
ROI is a process to measure the profit or losses of online marketing campaigns by using this formula (net profit/total digital marketing costs) x 100. This process can help you to understand the potential outcome of your strategies.
How Can You Calculate ROI?
To Calculate Profit
We already discussed how to measure the digital ROI. But to calculate the profit, you need to subtract your costs from the revenue. Then divide the net profit by the total costs.
To Calculate Percentage
Apart from that, you can also multiply that number by 100 to get a percentage. The formula is - ((Revenue – costs) / costs) x 100 = ROI
Calculating Internet Marketing ROI
In case you are not sure about the net profit or revenue, use this formula to calculate internet marketing ROI. The following formula is- [(Number of leads x lead to customer rate and average order value) – cost for marketing] / cost for marketing = ROI.
What are the Most Common Digital Marketing Metrics to Measure ROI?
Average Order Value
Customer Lifetime Value
Conversion Rate
Cost Per Lead
Cost Per Acquisition
Lead Close Rate
Are There Any Ways to Improve ROI?
You Can Analyze the Sales Data
The sales executive needs to pay attention to the metrics and trends of the sales activities of your company. You must make a decision on which type of data should be tracked to collect the data. As this is a complex process, therefore, you must hire a professional digital marketing agency.
“Don’t Optimize for Conversions, Optimize for Revenue”
Keep in mind that maximizing your ROI is more than the latest buzzword. You should take it as an integral part of the daily strategy of your business. To ensure maximized ROI, contact High Five Media in OKC.
