Successful marketing campaigns should drive your business forward. From creating brand awareness and capturing data to facilitating sales and optimizing conversions, the right marketing strategy can transform your enterprise.
If you are eager to enhance campaign results, take a look at these five ways to increase your marketing ROI:
1. Set SMART Goals
Without well-defined goals, you won’t be able to determine how successful your marketing campaigns are. Worse still, you could end up running campaigns that don’t equate to financial gain.
SMART goals are specific, measurable, achievable, relevant, and time-based. By using a SMART strategy to set objectives, you can ensure that all your marketing activities are designed to generate value and revenue.
2. Work with an Agency
Managing your marketing in-house can be tricky unless you have a department of specialists on hand. Successful campaigns involve a variety of marketers, such as PPC specialists, copywriters, strategists, researchers, social media gurus, and SEO experts.
When you work with a specialist agency, like merrittgrp.com, you can access the expertise you need to execute value-driven marketing campaigns and increase your marketing ROI.
3. Increase Automation
When you can run successful marketing initiatives with less human involvement, you reduce the cost of activities. Cutting your budget while maintaining or even improving results increases your profitability and, therefore, your return on investment.
Fortunately, there are numerous tools you can use to increase marketing automation. From automated, personalized email marketing to machine-driven PPC bidding, there are a variety of solutions to help you increase marketing automation.
4. Align Sales and Marketing Teams
Not every marketing campaign will necessarily aim to facilitate direct sales, but the overarching objective of your campaigns will be to generate revenue. To achieve this, your sales and marketing teams need to be working collaboratively and cohesively.
By aligning these departments and creating joint initiatives, you can ensure that you maximize the sales opportunities generated by your marketing activities and turn them into profit. By doing so, you’ll enhance your ROI and enjoy greater success.
5. Track the Right Metrics
When it comes to marketing, there are endless metrics you can use to monitor campaigns, particularly in relation to digital strategies.
However, not every metric will give you meaningful insight into the performance of your initiatives. Monitoring website traffic might confirm that your marketing campaign is driving users to your site, for example, but it doesn’t tell you what impact it is having on your conversion rate.
Tracking the right combination of metrics is critical if you want to get more out of your marketing budget. When you gather meaningful data and use it to make data-driven decisions, you can enhance the success of your campaigns and generate a higher return on your investment.
Make Your Marketing More Effective
With so many tools, methodologies, and platforms to consider, today’s marketers need a range of skills to deliver maximum results.
By keeping your marketing ROI at the forefront of your decision-making, however, you can ensure that every element of your marketing activities is designed to generate revenue.
How to measure digital marketing ROI?
First of all, identifying your digital marketing ROI is not as simple as glancing at how much money various campaigns bring in and comparing it to the expense. However, not all campaigns get the end conversion’s target.
Other campaigns are driven for building awareness. When others attempt to take clients into the marketing funnel. Particularly, how to measure digital marketing ROI can be based on what your special targets are.
There is a lot of data available for you on Google Analytics that can create the head spin. It is why we have put together a list of the most popular digital marketing metrics extracted to assist you in measuring ROI.
1. Conversion Rate
Conversion rate is among the most common metrics utilized to monitor return on investment. If the target of your marketing project is to transform, then conversion metrics can let you know how well you can accomplish this target.
It can refer to you what you are doing well and where you could distribute the resources for great outcomes and enhanced return on investment.
As for conversion rates, there are a host of things that you will need to search for. One of them is the conversion rates by channel. Understanding where the traffic is arriving from is half the battle.
You even need to glance at which channels are converting the most. If you realize that other channels convert more effectively than others, then you might need to invest a lot in other channels to enhance ROI.
2. Cost Per Lead
If the target of the digital marketing project is to gather some leads for the sales team to close, then you can measure how much you can pay for every new lead. It can assist you in identifying what your return on investment is for this specific project.
To know the Cost Per Lead, please split the sum of ad or campaign spend by the number of leads attributed to this project. If you realize that the cost of every lead is more than what you could create during closing those leads, then you are not taking a better return on investment.
3. Lead Close Rate
It is even crucial to track the lead close rate. It is something you might be doing for yourself. However, there is a good opportunity where that information is not being built-in into the online analytics you can gather.
Keeping track of the lead close rate can offer you an excellent initiative of how effective your digital marketing projects are that brings to your return on investment.
The next thing you have to do is testing your lead close rate towards the leads which are being produced. It can assist you in knowing how profitable every of the marketing campaigns is.
You could even utilize this information as the benchmark for new digital marketing projects. If you realize that some projects are closing leads at a lower, it could be the time to change.
4. Cost Per Acquisition
Your cost per acquisition lets you know how much it costs on average to obtain a new client. To calculate the cost per acquisition, you have to split the total marketing costs by a host of sales generated.
Understanding how much it takes to obtain the new sale assists you in knowing better your return on investment.
If you want to take a lot to obtain the client rather than bring it to your organization, you get a negative return on investment. It recommends that you want to visit the marketing projects and look for solutions to lower the cost per acquisition.
5. Average Order Value
Average Order Value (AOV) is the next crucial metric that could assist you in knowing the digital marketing ROI. The metric assesses the average dollar amount which is taken during the client’s order. To calculate AOV, you should split the sum of revenue by a host of orders.
When each business needs to track the orders increase over time, it is even precious to care about the average value of every order. Being capable of boosting up the average value of the order by a small proportion could lead to thousands of dollars of revenue.
Enhancing AOV is regularly as straightforward as offering a good user experience or better showcasing up-sell.
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