ROI or Return on Investment on your digital marketing campaigns are an integral part of any strategy. Your ROI is what tells you exactly which channels are working for you, and which needs to be relooked at. After all, since the biggest advantage of digital marketing campaigns is being able to identify the most ideal channels – calculating and understanding your ROI is imperative.
“When people ask me what’s the ROI of Social, I ask them… what’s the ROI of Trust, and what’s the ROI of Loyalty. The answer, when used to build relationships the results will be… longer lifetime value of a customer, larger average order value, and increased frequency of purchase. All measurable and all lead to increased sales and profits.” – Ted Rubin
Here are the best ways to run an ROI based campaign and what to keep in mind while doing so.
Understand the importance of Data:
Data is key to digital marketing campaigns run by any organisation. The information and numbers generated online, every minute, is staggering. Keeping those numbers in perspective and realigning whenever required is what marketing ROI is all about. Analyse your data, measure the effectiveness and the benefits to identify the right ROI.
Make sure Marketing is your focus:
A lot of organisations believe that digital marketing campaigns are a bonus. What many don’t understand is that this can no longer be the way to go – especially in the current scenario. To have marketing ROI, you have to create a marketing strategy and campaign that reaches audiences and creates commerce accordingly.
Creating the ideal goal for a ROI based campaign:
Any marketing ROI needs to keep 5 things in mind. It needs to be specific, measurable, achievable, relevant and time bound. When you build your digital marketing campaigns around these 5 factors, it’s rare that you can go wrong. An ideal and healthy goal for a ROI based campaign with any business is 5:1 or 500%. Which means your sales have to be 5 times your marketing spends.
Identify the right metrics for your Digital Marketing campaigns:
When you’re running an ROI based campaign on social media, you can end up mistaking likes and shares as the only indicators of effective returns. While there are many factors to keep in mind, likes, shares and comments can still boost your ranking on search engines and indirectly affect sales. However, SEO, PPC and Email Marketing are also great channels for a marketing ROI campaign.
Find the Right opportunities and make the best of them:
Once you’ve gotten all your data and have analysed it, your digital marketing campaigns have to make the best of it. Snickers, the chocolate bar brand, realised that people make the most spelling mistakes while they’re hungry. They then used misspelled keywords on Google to catch the attention of workers, during mealtimes. They managed to reach 500,000 people within just 3 days at a fraction of most marketing budgets. Now that’s a really successful ROI based campaign management.
Let Predictive Modelling guide you:
Predictive modelling is a tool that evolved over time to provide marketers with all the information they need to run a successful ROI based campaign. It studies internal, social and website data and then generates contextual information. This information then enables the building of a right strategy for marketing ROI.
Invest in the Right tools:
While your business is growing, you need to identify the right tools to help it grow without you having to look in on everything. Marketing automation allows you to do exactly that. From managing your email lists, to performing an array of other tasks, it allows you to boost your ROI based campaign without a setback.
Be Flexible:
This cannot be stressed enough. The biggest benefit of a marketing ROI campaign is that you can keep redesigning your approach and reassessing your goals. Keep experimenting with what your plan involves and keep evolving it over time. Keep an eye on your business revenue, compare it to past campaigns, identify what works best and what doesn’t. All of these factors come in handy, especially when you’re calculating your marketing ROI.
Key Takeaways
- The most relevant factor to improve ROI is to identify the exact parameters and goals for each of the parameters, which needs to be tracked and analysed. It’s often found that we either blame the campaign or the channel for a poor performance, as often the goal itself lacks clarity.
- It is imperative to know the timelines for which a campaign is being run, along with the necessary timelines as to when it needs to be evaluated, paused and tweaked. As these small tweaks and changes from time to time often makes a difference in ROI.
- Finally, the target group for every campaign makes it ROI positive or negative. It’s of utmost importance that we identify and evaluate the geography, demography, psychography, preferences, etc., of our target groups accurately, to run a successful ROI positive campaign irrespective of the marketing channels we choose.
So, there you have it. Here is all you need to ensure your marketing spends are being utilised in the right way. Every business needs a campaign that’s tailored to suit their needs. But no matter what campaign you choose, finding one with the appropriate amount of ROI is what is the most important!
