The key to improving your marketing ROI is to constantly measure your marketing results and adjust your campaigns. Today we’re sharing some information regarding ways to measure your marketing ROI and give it the boost it needs.
Measuring Your Marketing ROI
Here are common marketing metrics used to analyze your ROI.
- Cost per lead: To determine this value, divide the total campaign spend by the total leads generated throughout that campaign.
- Conversion rate: If the purpose of your campaign is to convert visitors into customers or leads, this metric will help you see whether your campaign is accomplishing the goal.
- Customer lifetime value: To calculate this amount, multiply the average number of times a customer buys per year by the average sale per customer. Multiply this number by the average retention time in years for a typical customer.
- Cost per acquisition/sale: To determine this number, divide the amount of the total campaign spend by the total number of sales generated.
How to Improve Marketing ROI
Your marketing ROI depends mainly on the cost of implementing your campaigns. Here are some ways you can improve that number.
- Experiment with marketing channels. These channels include email marketing, paid ads, direct response marketing, social media, and video marketing. The performance of the campaigns will help determine which ones your target customers respond to favorably.
- Determine the effectiveness of your core metrics. With any marketing campaign, the core metrics are leads, traffic, and sales. You will need to dig deep into these metrics to determine how they’re impacting your revenue.
- Focus on your ad spend and income. By keeping an eye on your marketing spend, you’ll be able to expose areas where you are spending too much without getting a good return.
- Implement A/B testing. This involves changing one element on a campaign and then comparing its performance against another.
You can determine how each of your channels is performing by comparing the conversion rate, profits, and leads generated by each campaign. From there, you can decide whether the results are what you expected them to be.
Blue Orchid Marketing offers customized marketing elements designed to increase your bottom line. If you need help with a Blogging, Search Engine Optimization, Website Development, Direct Mail, Email Marketing – or any other marketing tools – give us a call today at 203-746-5901 or send us an email to sales@BlueOrchidMarketing.com.