How to Measure and Improve Your Digital Marketing ROI?
To have a successful marketing initiative, you need to track your Return Of Investment or ROI. Tracking your ROI refers to measuring it periodically. It helps you to determine the factors that are working for your digital marketing investment and how you can improve the parts that are drawing your business down. Nowadays, around 70% of the customers all around do their research on brands and companies before they choose one. That is one of the top reasons why most companies have delved into the vast sea of digital marketing services. Because digital marketing provides you with a lot of data through which you can measure your ROI and improve on it.
Return of Investment(ROI) for your digital marketing is the profits and losses incurred on your online marketing campaign. Measuring the ROI would help you understand the effectiveness of your strategies implied and how efficiently you can improve them. Want to know how you can measure and improve your Return Of Investment for your digital marketing agency, read on to find out.
Measurement of Your Digital Marketing ROI
The formula that is used widely by most companies to find out the ROI is:
(Net Profit / Total online marketing costs)x 100 = ROI
On breaking this further, to find out your net profit, you can just subtract your total expenditure from your revenue invested. To calculate the ROI from there, you can just use the expanded formula:
((Revenue – costs)/Costs) x 100 = ROI
There is an alternative method by which you can generate the percentage of the ROI on your digital marketing company. To get that, you just need to divide your net profit by your total expenditure or costs. That is:
Net profit/ Total Costs
The value that comes out would be in consideration to 1. That is, if the net profit is $30000 and the total costs you have spent is $5000, then the answer comes to be 6. So, the ratio for this case would be 6:1, which means for every $1 spent you have earned $6. There are also much more intricate rules and formulas through which you can gain data about the ROI of your digital marketing company.
Why is Measuring ROI in digital marketing important?
If you do not measure your ROI, then how would you know about what are the factors that are working for your business and what are not? The data that you get through digital marketing would be of absolutely no use if they are not used to find out what are the areas that are providing you with positive growth for your business and what are the areas you could improve. Measuring your digital marketing ROI would also help you in refining your digital campaigns that draw traffic towards your company.
How Can You Improve Your Digital Marketing ROI?
When you have accumulated the data, you need to know how you can use them to improve your digital marketing ROI. The following are some ways you can enhance and improve your ROI when you work with any digital marketing company India:
- Use the gathered data to make important decisions. Plenty of analyzing tools are available that help you collect and scrutinize data daily, like Google Analytics. Through tools like this, you can check on areas that are affecting your ROI and use them to inform your decisions making improvements on your digital marketing ROI.
- You need to establish proper ROI goals before deciding on anything else. Once you have proper ROI goals set, it would become clearer about which aspects you need to focus on to achieve your ROI goals.
Along with the above-mentioned methods, you could also follow up on avoiding vanity metrics that do not give you accurate details.
You can test and adjust your digital marketing campaigns according to the aforementioned measurements and improve them visibly and efficiently. We at Digital Concepts provide you with exceptional tools to understand your ROI. To know more give us a call at +91 98301 40672 today!