To determine if you’re spending your marketing dollars on an effort that will result in a worthwhile return on investment (ROI), you should decide upfront how you will measure your results and what your goal for success will be. The strategy of measuring your marketing efforts is critical to understanding what tactics will bring you the best ROI and how to reevaluate those that aren’t.
For starters, knowing what, when and where to measure is key. Also, since there is no standard process of measurement, we recommend using several different methods to determine your ROI, all while understanding that marketing investments can take time to pay off. The marketing dollars invested today will have an impact on your future results — be it today, a year from now, or longer; it’s important to learn which efforts are the best investments by tracking your ROI.
Here are a few recommendations to get you started:
Website Analytics
Website analytics (i.e. Google Analytics) are an ideal way to accurately review data such as unique website visits, qualified leads, bounce rates, conversions and more. This is an excellent starting point, and because the information gleaned from your website analytics is so valuable, it’s our top recommendation for measuring your ROI.
Tip: Analytics apply to social media, too! Analytics are provided by social media platforms on ‘boosted’ or ‘promoted’ posts.
Revenue Cycle Projections
Revenue cycle projections help you to gain deeper insight on the long-term impacts of your marketing initiatives. For example, instead of waiting around to see results from a print ad, you could look at impacts of similar initiatives at the top of your revenue cycle, and make a predictive estimate of the long-term impact based on historical metrics. This method focuses on the revenue impact of individual initiatives and uses estimates to quantify the future value; it uses lead quality (not just quantity) to determine its value and impact.
Multi-program Approach
A multi-program approach works backwards to identify significant efforts that lead to the desired result. Developing a storyboard that shows various tactics leading to the result can help create a visual blueprint of combined marketing efforts. This approach incorporates multiple initiatives, and it’s useful for longer revenue cycles such as an annual overall result.
Group Testing
Another helpful way to measure ROI is utilizing test and control groups and comparing their results. A downside to this method is a high cost, but the results can be invaluable since you can customize the test and trust an accurate result.
While there’s no standard process for measuring ROI, we hope these recommendations act as a starting point for you to experiment with what yields the best results and return on your marketing investments.
If you need help implementing any of these methods, or you’ve already determined your ROI and you’re ready to turn the results into actions that will grow your business, we’re ready to help! Give us a call or email at 203-776-1323 or amy@elementsdesign.com.
