Return on investment (ROI) is a measure of the profit earned from each investment. Like the “return” (or profit) that you earn on your portfolio or bank account, it’s calculated as a percentage. In simple terms, the ROI formula is:
(Return – Investment)
ROI calculations for marketing campaigns can be complex — you may have many variables on both the profit side and the investment (cost) side. But understanding the formula is essential if you need to produce the best possible results with your marketing investments.
- Goal tracking.
Most marketers are using Google Analytics or one of its alternatives to monitor their marketing efforts. But you need to be using more than just the standard data it provides. You need to set up custom Goals.Say you want to see how many people have filled in your enquiry form. First, you need a specific “Thank You” page that can only be reached once the form is filled in. You then need to place a specific piece of tracking code on this page. Then, every time someone lands on that page after filling in the form, Analytics will record this as a completed Goal.
- AdWords spend vs. AdWords sales
If you’re running a PPC (pay-per-click) campaign on a platform like AdWords, you will have a solid idea of how much you’re spending each month.But do you know what ROI you’re getting from these adverts? How is your AdWords spend performing against your sales? Are you getting a great return, or should you focus your efforts somewhere else?Unless you’re monitoring your campaign effectively, you won’t have a clear picture of what’s working for your business. Take the time out to monitor your spend, and decide whether you should invest more money or cut back.
3. Call Tracking
Not everyone who lands on your website will make an enquiry via email or your contact form. But do you know how many people are converting over the phone? And more importantly, do you know what advert or SEO keyword drove the conversion?By using call tracking software, you can monitor exactly where your telephone enquiries are coming from. You can see which advert the customer is calling from, the journey they took around your website, and more. More sophisticated call tracking software can even record your phone calls, and pinpoint exactly where your sales process is working well – and letting you down.