The summer has been hot. When I say hot, I mean melt-your-face-off hot.
Speaking of hot, how are your marketing efforts fairing this year? Has your return on investment (ROI) been so good it’s hot?
If not, here are some pointers.
What’s Marketing ROI?
Marketing ROI is simply the extent to which marketing activities add value to the company’s bottom line. It measures the amount to be attributed to marketing activities, as compared to how much they cost in terms of direct and indirect costs, over a set period of time. It makes use of several different statistical metrics, such as:
- average order
- average sale
- dollar volume
- average ticket price, and
- total cost.
It is dependent upon many factors, such as the quality and type of the media being used, the competition level, and the nature of the products or services being sold. It can also be influenced by the company’s financial capabilities, its market reach, and the quality of its customer relations.
“72% of companies attribute their success to keeping
tabs on their content marketing ROI.” Lauro Media
Some of the best ROI measuring practices include defining the product’s or service’s “niche,” analyzing target markets, creating multiple campaigns to reach them, and monitoring results. Other methods include the incorporation of social media into a marketing strategy, examining the return on investment by analyzing advertising statistics, conducting market research, and monitoring customer satisfaction levels.
Another method for measuring marketing ROI is to use complex, mathematical formulas. These formulas were originally developed for the purpose of predicting the effectiveness of a marketing campaign. These formulas are usually used to determine whether a campaign is meeting its goals, the return on investment, and whether the campaign is expensive or profitable.
Here are some examples:
If you’re not meeting your marketing ROI, there may be a few things to consider:
- Do you have the right market defined?
- Is the geography too large or too small?
- Are you spending enough (budget) to make it effective?
- What happens when a person clicks on the content?
- What does the landing page look like?
- Would you buy from you?
- Does the marketing initiative tie directly to a business goal?
Marketing ROI is possible to demonstrate, even for B2B campaigns. If you’re not skilled creating campaigns, that might be the first hurdle to overcome.
Work with an experienced marketing pro to help you create the campaign; conduct the research to define the target market and set the budget; and execute and optimize it for maximum return.