Jun 21, 2014
Return on investment(ROI) is a dubious phrase to professionals in the marketing world. CEOs expect a return on spend marketing dollars in order to enhance the company “bottom line.” This practice sounds great in theory, but in reality is difficult to quantify.
As marketing becomes more and more integrated with public relations, a threshold of marketing success is even more difficult to define. What is the value of ten retweets on Twitter? What are 1,000 daily views of your company blog actually worth? Thankfully, with new technology and emerging analytics tools, it is more and more feasible to set goals and measure returns from invested marketing dollars.
Here are three practical suggestions from Marketing Method for you to measure your Marketing ROI:
1) Measure Customer Engagement
Engagement before, during, and after a sale is becoming increasingly important to all business models. Current studies indicate that a customer is twice as likely to convert to a sale online if they engage with your company through social media at any point in the sales process. With good analytics programs like Marketing Method, it is quite easy to tie online engagement to revenue increases and higher conversion rates. Both revenue increases and conversion rates provide compelling metrics when reporting ROI.
2) Sales Trends
Launching a major marketing campaign? Track sales rates before the campaign, during, and afterward. Is there a spike in sales during and right after the campaign? If so, you’ve identified a strong case for ROI for those marketing dollars. Compare the increase to the amount invested, and a high enough number will speak for itself.
3) Evaluate sentiment
There is great value in customer sentiment. Gauging changing sentiment over time tells you 1) whether or not your company is gaining ground with consumers and 2) how consumers are reacting to your company (new products, promotions, etc.). While sentiment is difficult to quantify, its contributions to your business are invaluable. Measure sentiment over time and report trends with your marketing reports.
Marketing is a key part of the success of your business. Marketing Method has a proven track record of success with clients and has the skill set to measure and prove return on investment.