In the world of digital marketing, most of us think that the only way to any website’s popularity is when it is viral and if it has excellent engagements. Unfortunately, that perception is wrong. No matter what kind of metric to use, it still cannot define the real score of your website, and it does not fully guarantee its success.
In order to picture the whole story of your website’s performance through the digital marketing aspect, measuring the digital marketing return on investment (ROI) is needed. Just like in other types of marketing techniques, it is important to know if you can gain profit to the efforts, resources and other investments you risked for the organization. You have to make sure that you are able to get the most out of everything that you are putting into it, and also to determine other ways to expand the exposure of your services.
This article will help you to determine the ROI in digital marketing and other essential matter that you need to know about it.
Digital Marketing ROI
Before that, you have to first know what is digital marketing ROI. It quantifies the profit and also the loss from the marketing campaigns made, basing on how much money is invested for every campaign made. So, it measures what and how much money is worth from every marketing methods used.
Measuring this does not only determine the return or loss of the invested money, but it can also aid you in knowing which of the marketing campaigns can benefit the organization, and which are not.
Digital Marketing ROI Metrics That Can Be Used
Conversion Rate
There are various ways to track ROI using this metric. In conversion rate using the channel, you have to determine which of your current channels convert better, and from here, you can put more risk into it compared to others. Conversion rate using devices, on the other hand, you are checking which of the available devices like mobile phones can get more conversions than other gadgets.
If you really want to increase your company's conversion rate and supercharge sales, try to incorporate popular programs like Salesforce and WhatsApp. Connecting WhatsApp and Salesforce for sales and customer service will significantly grow your business conversions and revenue.
Cost Per Lead
Another way of measuring ROI in digital marketing is by determining the lead that your sales team can close. This can be done by dividing the total advertise spend over the total number of leads done on that campaign. You have a negative ROI if every cost of lead is more than you can gain from closing that particular lead.
Lead Close Rate
Measuring the lead close rate can give you an idea of the effectiveness of each campaign you made. Also, quantifying the lead close rate over the generated leads can inform you gainful each campaign is. The information from these can prepare you for new and better digital marketing campaigns.
Cost Per Acquisition
This tells you the cost you have to have in every new customer. It is another essential metric because this will help you determine the digital marketing ROI you can have in getting new clients. This can be calculated by dividing the total marketing cost over by the generated number of sales.
Average Order Value
Meanwhile, average order value is determined in how much spent every time a customer places an order. It can be done by calculating the total revenue over the total number of orders.
Customer Lifetime Value
Another important indicator of digital marketing ROI, this metric tells what the customer will spend during his lifetime as a customer. Using this method can help you identify the over-all value of an average customer.
Digital Marketing ROI Tactics
1. Email Marketing- click-through rate, bounce rate, unsubscribe rate
2. Landing Pages- total page views, time spent on page, actions taken, and conversions
3. Social Media- Engagement rates, new followers
4. Blogs- Traffic, clicks, time spent on page
Ramp Up Your ROI
Digital marketing ROI doesn't have to be a mystery. Use the metrics and tips above to maximize your marketing return on investment.
