How To Improve Your Digital Marketing ROI Using These Top Tips
The recent data has revealed that around 40% of the people worldwide have an internet access now. Many companies are well aware of this fact. This is the reason why over 75% of the companies are thinking of growing their digital marketing budget shortly.
Some of the popular and quite effective digital marketing tools are social media marketing, search engine optimization, email marketing, social bookmarking, and so on.
There are numerous companies that have got an emphatic rate of return on investment from their digital marketing campaigns. In fact, the latest study has shown that marketers on average are getting around $6.85 for every $1 spent on an influencer marketing campaign.
This type of return can get any marketers in the world on their feet due to the excitement. Despite the fact that there numerous companies that are getting an impressive return on investment from digital marketing campaigns, there are also many cases of failures.
Here are some of the cases of digital marketing failures that you may want to go through. Now, the question arises: Why do many marketers fail to get a desirable rate of return on investment from their digital marketing campaigns.
Like all other businesses and marketing methods, a marketer needs a concrete plan to get the success in their digital marketing campaigns. They must do their homework on a regular basis to be successful.
The next part of this article will deal with five things that digital marketers must do to improve their return on investment.
So what are the top 5 things for digital marketers to do for improving their return on investment?
How would you feel if you keep on spending money on marketing campaigns without getting a dime back from your efforts? You would probably be frustrated. Some marketers may even develop a belief that digital marketing is not for their brands.
Let me tell you that digital marketing has proven its worth for all types of brands and different sizes of companies. It’s the most effective and affordable method of marketing. Getting out of the internet will only do more harm to your brand.
To get a success, it’s important for marketers to keep on improving and to be persistent in their efforts. Here are the top 5 things that digital marketers must do to enhance their return on investment from their digital marketing campaigns.
1. Understand Key Metrics
Whenever digital marketers are asked about their digital marketing campaigns performance, they immediately point out to indicators, such as sessions, conversions, cost-per-click, open email rate, and so on.
Well, these metrics are useful when you’re out there optimizing your marketing performance, but these metrics are not the only things that determine the return on investment from the campaigns.
The things that matter is financial benefits from the marketing campaigns. After all, it’s finance that is needed to carry out the marketing activities.
The marketers must be able to tell the management team how their digital marketing campaigns have added value to the business. The metrics, such as cost-per- click, open email rate, and so on should be linked to the revenue.
For instance, a marketer can show how the increment in the engagement has impacted the sales of the product. You can also compare the performance of the company before and after the marketing campaigns to measure the result of the campaign.
2. Look For The Ways To Increase Revenue
Reducing the digital marketing campaign cost is the priority, but the marketers should not solely emphasize on only running cost-effective digital marketing campaigns. It would be more sensible for marketers to focus on ways to increase the company’s revenue.
If marketers can increase the revenue with their campaigns, the chances of them attracting the investment in the future will increase. Focus on proving your worth to the management team.
Being very familiar with the levers marketing can be very useful for marketers to increase the revenue. For digital marketers, there are three ways they can create an impact on the company’s revenue.
- Boost in sessions
- Increment in conversion rate
- Increment in an average value of the customers
The marketers who are not emphasizing on improving these metrics should immediately start emphasizing on these three metrics to improve their worth.
Let’s take an example of a content marketing campaign. If your content marketing campaign is only focused on promoting your content via many digital platforms without emphasizing on the top three ways to judge the performance of a digital marketing campaign, it won’t prove that your content marketing strategy is being fruitful for the company.
Find the ways to link your content marketing strategy (if you are focusing on content marketing) to the above three things that directly impact the revenue.
3. Identify Supporting Metrics
The major metrics are the ways to measure and analyze the rate of return on investment from digital marketing campaigns, but the marketers should also identify supportive metrics.
By identifying the supportive metrics, the digital marketers will not only be able to prove that it is only because of their efforts the conversion is increasing, but it will also help them to find out the additional things that they must be working on.
It’s not an easy task for marketers to identify supporting metrics, but the time spent on identifying them would be definitely worth their time. For instance, an eCommerce store can find out the ways to reduce their cart abandonment rate.
The cart abandonment rate could be the supporting metric for proving the return on investment from the digital marketing campaigns for them. Identifying and listing out all the supporting metrics can help digital marketers to greatly improve their campaigns.
They can work out on both major metrics and support metrics for a better return on investment from their digital marketing campaigns.
4. Use Of Time Series For The Analytical Purpose & Calculation Of Return On Investment
The time series analysis should be the important part of the analysis for digital marketers. By using the time series analysis, you can check out your return on investment before and after your digital marketing campaigns.
You can use a regular data sample or a time series for this purpose of calculating the return on different time periods. Doing a time series analysis will help the marketers to know the impact of various digital marketing campaigns on various key metrics that they have listed out to measure their return on investment.
Furthermore, it will also help the marketers to know if the digital media marketing campaigns have negative impacts on the key metrics or not. There could be some digital marketing campaigns that could produce negative results, instead of producing positive results on key metrics.
With time series analysis, you can also see what campaigns worked out for you and what campaigns did not work out for you. After finding out your flaws in previous marketing campaigns, you also have an option of retargeting your customers.
The study by HubSpot shows that retargeted ads are 70% more likely to convert than normal ads.
5. Prepare A Detailed Report & Analyze It
The final thing you as a marketer must do is preparing a detailed report to see the overall progress of your campaigns. You can mention all the key metrics, specific digital marketing campaigns, and results obtained from every single digital marketing campaign.
The calculation of return on investment from each campaign and the cost incurred in each campaign should be stated in the report. By preparing the report, you will get to know in detail about your successful campaigns and failed campaigns.
Focus on doing things that worked in the future to increase your return on investment.
Conclusion
There are cases of failures in digital marketing, but the people have proven that implementing the right strategies can lead to success in digital marketing. Only getting your words out via social media platforms or your website does not guarantee success.
If digital marketing were so easy, the failure rate of eCommerce stores would not have been so high. According to the stat, around 8 out of 10 eCommerce stores fail to sustain their stores. The people are always bombarded with ads. The digital marketers that can stand out from the competitors are the ones that taste the success.
By doing the five things that are mentioned in the above part of this article, you too can join the digital marketer success club. But, make sure that you are always updating yourself with the latest trends on the internet. Without keeping yourself updated on a regular basis, it’s impossible to hold on to your business for a long period.
I hope you enjoyed this article about areas that marketers must excel in to improve their digital marketing return on investment.
Interested in more articles about improving your digital marketing?
Read My Blog Posts:
- Reasons Why You Need A Digital Marketing Strategy
- Tips To Improve Your E-Commerce Site
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