How To Enhance The Digital Marketing Of Your Organisation’s ROI

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Digital marketing is constantly on the rise, and so are the expectations of customers for personalised digital interactions geared to their specific needs. 98 percent of CMOs now merge their traditional and digital marketing efforts, including key technology investments in the areas of social marketing and digital commerce, to meet these expectations.

Regardless of the digital technologies used, it remains a primary focus for any business to generate revenue. Common sense then dictates that marketers need straightforward ways to determine if revenue is generated by their efforts.

Enter return-on-investment (ROI), a key metric for any company looking to evaluate the impact of its digital marketing operations. ROI is easy as a metric; it is the cost of carrying out an activity versus the resulting results. While the ROI theory is straightforward, it is an entirely different challenge to measure it and know how to develop it. We’ll explore some important ways in this blog that marketers can increase ROI from their digital marketing efforts.

Be a marketing-driven organisation

It is no secret that today’s digital technologies allow marketers, not only for prospecting but for ongoing customer engagement, to explore customer data in greater detail than ever before.

That’s why forward-thinking executives across the company support data-driven processes throughout the sales pipeline that emphasise marketing principles. Unlike a luxury add-on to the outdated view of marketing, these efforts will facilitate the development of personalised interactions that many view as a hallmark of the marketing-driven businesses of tomorrow.

Set up ROI targets

It helps to keep the acronym “SMART” in mind when establishing a business objective, a reminder to ensure that the objective is Specific, Measurable, Achievable, Relevant, and Time-bound. Setting an ROI objective is no different, but it can be hard to determine. A good marketing ROI is 5:1 in general, meaning $5 in sales for every $1 spent. In most industries, a ratio of more than 5:1 is considered strong, and 10:1 is exceptionally high. It is possible, but rarely anticipated, to achieve a ratio greater than 10:1.

Remember, many factors, including your industry, cost structure, and other variables, depending on your target ratio. Without setting unrealistic expectations, organisations should aim for success and ensure that the analytics selected focuses on the effect of the marketing efforts of your company on achieving or exceeding the target ratio.

Be Aware of Overvalued (or Undervalued) Metrics

Some metrics, especially when it comes to social networks, tend to be overvalued. While ‘likes’ and ‘shares’ on Facebook can be easily measured, they have no direct effect on revenue.

It is also a mistake, however, to discount them entirely because likes, shares, and comments can enhance the position of your brand in Google and other search engines and lead to more users finding your website. For nascent content teams, which often have to rely on non-traditional metrics to determine what factors contribute to their success, this is especially true.

 


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