Part of the process of figuring out how to maximize ROI (Return on Investment) is clearly to keep track of the effectiveness of the marketing spend. Determining ROIs can help marketers decide on which path ensures the highest potential for success, and while this is true, there are also other questions to ask yourself before you finalize how you choose to run your marketing efforts.
The first question you should ask yourself comes from the type of business case you choose to use to calculate your ROI. Depending on the businesses’ motivation, the expansiveness of how your marketing efforts may calculate differently. For example, it may be more beneficial to expand your concept of how you think of “Customer & Return.” It’s found that marketers do not include ROIs in every aspect of the business. Instead, they focus primarily on subscriptions and forget to implement other factors that their ROI is based on. Small Micropayments for articles, or more substantial payments for events, and various other marketing channels should be considered to receive a more accurate ROI estimate.
The second factor to consider when attempting to calculate a more accurate ROI has to do with frequency. More specifically, the rate at which your agency is measuring their marketing budget. To maintain the most precise ROI calculation, you must consider some different factors. To start, try thinking in terms of timeframes. Ask yourself “In what timescale do I have the ability to control the marketing budget? Is it months? Weeks?” Your frequency can help you determine the actions you have to take to receive an accurate ROI.
Determine A Starting Point
It is essential to have an idea of your starting point, to see your progression. To get an idea, first determine the figure of where you would like to be before making a marketing investment, that way you can start to see a pattern that shows how effective your marketing campaign is in the future. Another figure you should determine before starting has to do with the goals you set out to achieve. Be as specific as possible. Use KPI’s (Key performance indicators) as a tool to determine whether or not your goals are met. All of your marketing tactics should always be directly tied to KPI’s.
Determine Data Tracking Techniques
Before starting marketers typically have an idea of how all their data is tracked. Measurements that are a part of different channels should be taken into consideration, because their figure, by nature can tend to behave differently. In the long run, be sure to include macro and micro methodologies. Part of every marketer’s day should consist of analyzed customer paths and study of the sales funnel. This can help to create annual figures that can ultimately be examined as a whole.