Get the best bang for your marketing buck.
Return on investment, or ROI, is the measurement companies use to determine payback from their marketing efforts. In other words, is a print ad, radio spot, TV commercial or email promotion profitable? If it is, which medium is providing the biggest bang for your buck?
Based on the above definition, it is safe to assume that ROI is a primary measurement of marketing effectiveness. Measuring ROI can be a challenge, which may explain why many companies aren’t doing it. Here are five simple steps to start measuring ROI today.
1. Define success:
In order to effectively measure ROI, you must determine your company’s definition of success.
2. Set goals:
Once your company defines and agrees upon its success measures, goals can be established. Goals should be realistic, measurable and adjustable.
3. Gather data:
In many companies, data is collected and managed in multiple databases across multiple departments. Establishing a system for data collection provides a clearer picture of marketing effectiveness.
4. Monitor goals:
Results should be monitored frequently and consistently in order to stay on track. Identify shortcomings, such as declines in leads, page views or sales inquiries. This helps determine when alterations need to be made to an existing plan or if a new plan needs to be put into place.
5. Utilize your data:
Quit relying solely on gut instincts and let the data do the talking. To make good marketing decisions and successfully justify your marketing budget to the powers that be, you need to gather and use your data.
Marketing is one of the few things you do in your business that does have a measureable return on investment. Doing it right is critical, so make a plan and make it work.