When running a business any significant spend has to be analysed and justified. This is especially true for any kind of marketing as this is the activity that is supposed to help generate new business and ££s on the bottomline. If it’s not bringing in the leads then why spend the money, right?
But is the process of determining ROI on marketing (and we’ll talk here about digital marketing) really as simple as ‘how much did we spend?’ against ‘how much did we make?’
The answer is not so black and white. So what steps do we take to demonstrate ROI to our clients?
What is the client expecting as a result of the work you are doing on their behalf? It may not be purely about the bottomline, but if you don’t set these expectations and objectives at the outset then it’s impossible to measure what impact your efforts have had.
Have the right tools for the job
Do you have the correct software in place that will allow you to measure and report on progress against agreed objectives?
For example if the objective is specifically to drive traffic to a website from social media platforms, do you have Google Analytics (GA) set up to record this information?
Event-based goals are another feature in GA that can provide way more insight into user activity on your website than the old-fashioned destination goals could.
Events can be set up to capture all the nitty-gritty, non-pageview information that could prove really interesting; the things that happen whilst a user is actually on a page such as clicks on downloads, links to other pages, plays of videos that are embedded in the page, interaction with a tool e.g some form of calculator, and of course, completion of a form.
What’s more you can then attribute a value against each event - whether that’s monetary or behavioural.
Report and plan
Producing an easy to digest report of what digital marketing activity has taken place, and the results on the back of it, are as important to you as an agency, as they are to your client.
As digital marketers we have a myriad of complex analytics packages available to us; our job is to use these to create a report that breaks through the jargon and delivers something which is easy to understand for our client, and clearly conveys where the activity we have recommended has delivered ROI.
For example, if you are embarking on a campaign of email marketing to your client’s customer database, the platform used to disseminate the emails needs to have a detailed reporting package which will allow you to analyse success and determine what content is performing (driving click throughs) and what isn’t?
Having this type of information available allows you to build a report that delivers key facts and stats to your client, but should also be used as a benchmark for you as an agency; what you will measure against at the end of the following period, and use to make recommendations for future improvement.
Keep expanding our knowledge
Due to its very nature, the digital marketing landscape is ever-changing with new techniques, best practices and tools constantly coming into play - not to mention Google’s regular algorithm updates to keep abreast of.
So in order to ensure we deliver ROI to our clients, we need to make sure we’re in the know. Ours is an industry where the saying ‘you learn something new every day’ really is true!
If you’re thinking of embarking on a digital marketing campaign and would like to discuss your requirements, give us a call - we’d love to hear from you.