- Determine your goals
Knowing what it is you want to achieve is one thing, but determining how you manage it is quite another. Define your long-term strategy and identify the actions you need to take to achieve it. Align these actions with measurable outcomes – metrics you can use to track your progress – and define a time frame for hitting specific targets. A trade show might not yield returns today, but the boost to brand awareness and increased reach could pay off a year down the line.
One thing that is worth noting; it’s important to choose the right measure for your strategy. The number of Facebook likes, for instance, will give you no real insight into engagement ROI, since it has no bearing on sales. However, click-through or conversion rate statistics will provide a valuable snapshot of the leads generated by your campaign.
- Define the cost of each customer
Deciding what a sales lead is worth to your business is a critical component of budgeting for a campaign, and it is arguably one of the most important metrics to consider.
While it’s not the only measure of worth, it does provide an accurate overview of the viability of your business and how appropriate your strategy is. If the cost to find, convince, and onboard new customers exceeds the value of the sale, then it’s time to rethink your approach.
- Track your progress
Understanding where your customers are coming from and which activities are driving sales is essential for measuring both engagement and marketing ROI.
Including a click-to-call button in your social media ad makes it easy for potential customers to reach out, it also lets you track conversions and measure the effectiveness of advertisements.
The internet is a big place. By tagging URLs, you can see clearly which activities drive the most traffic to your site.
Whether you rely on Google Analytics or a third-party solution, website analytics is invaluable for measuring engagement and ROI and tracks everything from the keywords people use to how they interact with your site.
Micro-Moments isn’t the buzzword of 2015 for nothing, and mobile technologies like beacons have uses that go way beyond influencing purchasing decisions. With the ability to track and measure the effectiveness of a campaign from notification to purchase, they can provide bricks and mortar retailers with valuable engagement and ROI metrics.
The best approach to measuring marketing and engagement ROI varies depending on your industry and the objectives of your campaigns. Defining your goals, establishing a realistic budget, and tracking your progress is the key to running a successful, profitable campaign.