Measuring Digital Marketing ROI is essential for your business.
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 you have invested.
In other words, this measurement tells you whether you’re getting your money’s worth from your marketing campaigns. If you have a positive return on investment, it means that your campaigns are bringing in more money than you are spending on them.
Demonstrating digital marketing ROI is important because without measuring this, you are essentially marketing blind.
Here you will find the most up-to-date 5 Step Check-List measuring digital marketing ROI.
You can go ahead to download a free PDF template of this 5 Step Checklist. Bookmark the checklist or print it out (though we highly support environmentally friendly content consumption). Here’s a breakdown of what the 5 step checklist to measuring digital marketing ROI checklist contains. You can jump into a part that interests you the most.
Step 1: What does Digital Marketing ROI Mean for Your Organization?
(What are the key performance metrics? Agree upon the definition of “success.” For instance, content marketing managers will be interested in the number of blog posts and downloads published, while a CMO will be interested in cost-per-lead and the number of new leads at each phase of the sales funnel. )
Customer Acquisition Costs
Customer Lifetime Value
Website Traffic to Marketing Leads
Marketing to Sales Conversion Rates
Landing Page (Content) Conversion Rates
Social Media Reach and Engagement
Mobile Traffic, Leads, and Conversion Rates
Step 2: What are your goals?
(Once the KPIs have been agreed upon, the next step is to establish appropriate metrics. As time goes by you will need to make adjustments to your goals as you dig deeper into the data over time. Ensure to set measurable and realistic goals, and willing to adjust accordingly. You may also establish guidelines on how the data will be presented. )
Step 3: What Data have you Gathered?
Know your Metrics(Reach, Engagement, Traffic)
(Ensure to establish a system for collecting the data needed from each department. This helps you overcome the challenge of not missing any data shared from various departments. A closed-loop process through your marketing automation platform is highly advised. This integration will ensure you get timely feedback from sales on the impact of your various activities in driving revenue. )
The most common and often essential metrics to pay attention to our engagement, impressions, and reach, the share of voice, referrals, and conversions, and response rate and time. These combined will give you a 360º view of your social media performance.
Step 4: Are you monitoring your goals frequently?
Measure your Metric(Tools, Tracking, Reporting)
(Monitor your KPIs on a weekly basis, if not daily, basis. For example, at Growthpad Digital Consulting, if we notice our number of new leads is below target at any point during the month, we have a plan in place to publish and promote new content among other tactics.)
Step 5: Are you making better Decisions using the Data you are Collecting?
(Collecting Simple Data is Highly Crucial when handling a digital marketing Campaign. Every successful online marketer understands the importance of this, especially for the decision making process and using that data to justify the budget requests.)
Once you’ve measured your Digital marketing ROI for your social media platforms, it’s time to think strategically about optimizing your content marketing resources in terms of allocation and timing. Having hard data helps you answer questions about which initiatives are most fruitful, what language engages your audience best when your efforts are most likely to pay off. Ultimately, this data-driven approach lets you continually adapt to the needs of your audience, ensuring an ongoing, robust ROI.