Ways to track your ROI in Digital Marketing
How much marketer is earning from his marketing campaign is very important to know or measure. Return on Investment (ROI) is an integral part of digital marketing because it tells you whether you’re getting your money’s worth from your marketing campaigns or not. A positive return on investment is the ultimate aim of every digital marketer. If you’re not getting enough return then there’s something which you’re lacking at and you need to learn how to improve it. However, first, you need to understand how you can effectively track or measure the ROI of your marketing campaigns.
Learn some effective ways to track or measure your ROI
– Online sales
Online sales are the best and simple way of checking conversion on your website. You can track your online sales using Google Analytics or another Web Analytics platform. Conversions are more directly linked to your sales and revenues. The ultimate goals of marketers are only increasing their profit and making sure that their digital efforts are absolutely essential.
– Website visits
For every marketer, it’s significant to measure or track visits per marketing channel. Checking your site visitors and analyzing how many of them making an action or not is important to measure. This is very helpful to measure because it can tell you about your traffic trends over time and your SEO efforts.
– Cost per lead generation
You need to measure how much you’re paying for each new lead if your digital marketing goal is to collect new leads for your sales. By doing so, you will be able to track what your return on investment is for every particular campaign. You can calculate cost per lead by diving total ad or campaign spends by the total number of leads attributed to that campaign. If the cost is higher than producing leads then you’re not getting a positive return on investment.
– Pageviews per visit
You must understand that website visits are important but they don’t indicate whether people are engaged by your business or not. What if people visiting your site not clicking around to your various products or services? Luckily, Google Analytics can show you how visitors can click through your site and provides average numbers of page views per visit. Pay attention to which page of your site people is visiting more.
– Lead and sales from phone calls
If you want to measure or track your ROI then you should also consider tracking your leads and sales from phone calls because they are very important for businesses. For tracking calls, you need to set up dynamic number insertion (DNI), which shows visitors’ different phone numbers depending on how they arrived at your website. It will help you measure the ROI of your marketing campaign as well.
So, why should you track to determine your ROI?
Measuring or tracking digital marketing campaign ROI is very important for every marketer to know where he stands in the marketing field or how much he yields from his campaigns.
The easiest way to determine ROI is to compare your revenue to your marketing expenses. Let me also tell you the equation to measure ROI – (Revenue – Investment) / Investment.
When you apply this formula in your marketing, you will see the overall investment and revenue you’re making. It will also help you improve your marketing performance in the future and then you can invest accordingly.
Digital marketing ROI is the measure of the profit or loss that you generate on your digital marketing campaigns, based on the amount of money invested by you.
The bottom line
Folks you must keep one thing in mind that ROI is not a simple concept. It incorporates numerous variables and results from differential equations. However, ROI is one of the most accurate ways to measure your campaign success over time. Tracking your digital marketing ROI helps you improve the performance of your marketing campaigns.
Every marketer must know the importance of measuring ROI and why they need to track ROI. I hope this brief guide helped you to understand the ways you can measure or track your ROI in digital marketing. So just follow and implement.
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