Jerry Maguire, eat your heart out.
As a business owner you need to constantly ask yourself, “is this a good investment?” or “what is the ROI?” Marketing is one of those activities that proves more difficult to show return on investment, which is why it is usually the first to get chopped. I’m here to tell you not to do that.
According to The CMO Survey from Duke University’s Fuqua School of Business, only 31 percent feel they can prove the long-term impact of marketing spend quantitatively. Proving ROI is hard, but not impossible and we frankly love doing it. No really, we freaking love it.
Here is the deal; when determining return on investment for marketing activities, keep in mind the multiple variables that influence outcome. Brand awareness, customer lifetime value and touch points (over 7 are recommended) are all ROI factors. The easiest way to measure ROI is through analytics, which requires companies to invest in digital marketing such as SEO, SEM and social media. Traditional efforts such as billboards and print advertising are not trackable unless tied to inbound marketing.
Measuring and optimizing metrics on each marketing channel such as, email, social media and website provides early indicators of success (or failure) of marketing campaigns to better track and predict their cumulative impact on customers’ purchasing decisions in the long run.
With Google Analytics alone you can see:
- How many people are visiting your site
- Where your visitors live
- Which devices they are viewing your site from.
- Which websites are sending you referral traffic
- Which marketing tactics are driving the most traffic to your site
- Which pages on your website are the most popular
- How many visitors you have converted into leads or customers
- Where your converting visitors come from and go on your website
- How you can improve your website’s speed
- What blog content your visitors like the most
All of this information shows what marketing efforts are working and what isn’t. This then allows you to change your approach to increase ROI and concentrate efforts where the most impact is. What goals do you have set up for your company? What do you consider success?