Marketing ROI is a trendy topic for discussion of all time. As easy as it sounds, the meaning is simple – A formula to calculate return on investment from the total amount one spends on marketing. Works as a performance indicator for marketers, ROI helps in measuring the effectiveness of the business. No business wants to live with poor ROI as it kills the business image. That is where a team of digital marketing in Mississauga can make things easier. They create and run marketing campaigns that work great for business growth.
A Good ROI – How To Calculate?
There is one example, if the money invested by the company is well spent, then it implies a good ROI. On the other hand, a low ROI means no positive results to be seen on the money spent.
Maintaining customer trust is important all around the world. And when it comes to calculating ROI for campaigns, one should be a king or queen. It is a must for an individual to have a deep understanding of the investments and know which one can deliver the greatest profit. We are discussing a few basics like how to calculate ROI and keys to measure performance for businesses.
Let’s discuss this in detail
The formula to calculate return on investment is:
The ROI generated can further be used to measure different types of activities, based on the marketer’s goals on each campaign. The next step is to understand the goals of marketing campaigns and a way to measure them. Start with identifying the metrics that help to analyze the marketing campaigns. The analysis by those ROI metrics should be in real-time.
ROI Equals to
For E-commerce Business
The campaigns of e-commerce businesses created to enhance the awareness of a brand, generate good leads and turn visitors into customers. Both the leading and ROI metrics that you measure here are
Website traffic – After launching the campaign, measure the traffic that is on your E-commerce business site.
Social media engagement – Another, you can calculate the engagement of the audience on different social media networks.
Sales Revenue – Calculate sales revenue. The more sales you make, the more revenue you can earn.
Newsletter subscriptions – You can also track the newsletter subscriptions whether they are on the rise or not.
For Content Marketing Business
In content business, the marketing campaigns are focused on creating unique content for the audience to earn valuable customers in return. The content posted in the forms of blogs, emails, and articles on various social media networks.
It is important to track the performance of the content, regardless of type. The most common metrics you need to calculate are:
Website Traffic – Track the traffic and the time spend by the reader on the content page.
Likes & Shares – You can judge the content performance by calculating the likes and shares on your social media posts.
For Lead Generation Business
To analyze the performance of your lead generation business, you can measure the following metrics:
- Traffic from website
- Total number of attendees at webinar or event
- Responses from live chats
A good ROI for a marketing campaign is based on two things – the first is your past performance and the second is the benchmarks of the digital industry. A marketer can use these benchmarks to calculate the performance of your business previous to the current campaign. This way, it becomes easy to identify campaigns that are not working well.
A marketing ROI is more than just numbers. All those businesses that are looking for a positive return on investment in a short timeline can take help from one of the best marketing consultants in Mississauga. They help you get the most from the marketing campaigns and turn your business into a win.