Measuring the ROI of Your Marketing Programs

Learning how a marketing program affects your revenue and profit is the backbone to measuring your marketing success in small business. Different questions come about such as: “How did this email newsletter or social media campaign impact my recent ROI?” The most useful information you can gain from your campaign is the effect it has on your ROI. When you know what drives your sales, you’ll have a better chance of repeating the success for the long term. Here are some methods to help you measure the ROI of your marketing program.

Why is Measuring Your ROI Difficult?
It’s hard to measure your ROI in the beginning because it could be a direct result of a great campaign with perfect timing. That’s why it’s important to know when to measure. Where should you invest your money? Should it be a social media strategy? Do you want to invest your money in a tradeshow to let the market see your new and upcoming items? There’s no telling when you’ll get your ROI, so it’s important to plan ahead and create a budget for now.

Also, it takes a few touches for your customer to actually want to take a bite. Your prospect has to hear, see, smell, and touch before they actually want a taste of what you offer. This takes time and it’s hard to gauge where you should place your efforts in marketing. This also includes different influences because each customer has individual tastes. You have to find the right demographics to match the particular programs you offer.

Utilize Test and Control Groups
These groups help to measure your ROI because you use real data to come up with a consistent answer. You can create two control groups that measure completely different things. Be wise because testing can get expensive. You cannot test everything, but the data you get will be invaluable to help you predict your prospect’s behavior. You can do this in a number of ways: create a webinar to see if anyone converts to your list, sending out email newsletters, and develop different advertising displays on your site. You need some good variables to measure how well each group responses.

Some of the pros of a test and control group include: data analytics on how a marketing program works, measures the impact of the test, and working within a budget for your test that’s small and specific enough. The downside of a test and control group is you can only measure specific tactics, so it leaves out the whole. Also, it can get very pricey if you don’t have a focus.

Understand Different Methods of Content Metrics
There are different benchmarks to understand how your material gets consumed. All marketers have a focal point, but there are for main things to measure:

Consumption
Real life data analytics on the surface can give you a general look into how well your content is received. You should get a service like HubSpot to help you measure your content views, time visitor stay on your page, and even the bounce rate. This information gives good preliminary detail on content performance, brand awareness, and the level of traffic your site has reached.

Social Sharing
Engagement, reach, and brand awareness are all important factors in evaluating your presence online. Social metrics include +1s (Google), retweets (Twitter), repins (Pinterest), and likes (Facebook). All of these factors determine whether or not your content is valuable across social media.

Lead Generation
You can’t forget good leads, as this is the way to attract a loyal following. These factors include form submission and blog/email subscriptions to measure the conversion rate of each sign up. This is the most personal relationship you’ll have with a customer because the email and other private details are shared. This is useful because you can really create segmentation in the market to target what that customer likes.

Sales
Of course, sales is the last thing to measure. Your content shows how effective it is in acquiring customers and the overall growth of your company and company’s revenue. It’s important to note how your content grabs a customer’s attention to see the impact in revenue. You must be proactive in finding out what content is actually driving customers to buy.

How to Measure and Understand Marketing ROI
A couple of things are black and white when it comes to measuring marketing such as the effect a campaign has on likes and page views. However, there are some gray areas in which customer awareness, brand supporters, and engaging community comes into play.

The best thing you can do is set objectives and achieve them. How many followers do you want on social media? What type of engagement you want on your email list? How can you drive conversions your form submission? These are all factors in creating quality ROI.

It’s also important to get the data you receive from these factors and use them to drive your campaigns. Can you create a test to produce the same results for a campaign using a different product or service? These steps take patience but it helps to build a great marketing program to increase your ROI.

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SMB Reviews
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SMBReviews is committed to providing small and mid-sized business owners with the information and resources they need to select the best service or product for their company.

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