The digital marketing return on investment calculation measures your business’s profit or loss on digital marketing campaigns based on the amount of cash you have invested. In short, that means you can determine whether you’re getting your money’s worth from the online campaigns. Once you’ve calculated your ROI, you need to know how to boost it.
How do you calculate your digital marketing ROI?
Before looking at the tips you can use to boost your digital marketing ROI, you need to know how to calculate it and understand what it means. You can efficiently and accurately measure your return on investment for each of your campaigns by using a digital marketing ROI calculator. Your ROI is measured as a percentage of your profit and can be either positive or negative. A positive ROI figure means your campaigns are bringing in more money than the amount you spend on them. Once you have calculated your ROI, you can identify which marketing elements are not performing well and take action towards improving them.
- Establish Goals
If you want to boost your digital marketing ROI, you must establish ROI goals. These need to be specific, measurable, and achievable. In terms of numbers, a good digital marketing ROI is a ratio of 5:1, which means you achieve $5 in sales for every $1 you spend. If you reach more than that, it means your ROI is very strong. If you obtain a ratio of around 10:1, it means your ROI is exceptionally high. When establishing goals for your digital marketing campaigns to achieve an excellent ROI, you need to consider factors like your specific industry, your cost structure, and your variables.
- Use Predictive Modeling
Predictive modeling uses statistics to predict outcomes. It’s an important tool for measuring and boosting your digital marketing ROI. Gone are the days when predictive modeling could only project conversions or sales before a marketing campaign. Now, predictive modeling analytical tools enable you to use social, website, and internal data to interpret particular and contextual information about your target customers and clients. Once you have analyzed the results of your predictive modeling, you can take the appropriate actions to boost your ROI.
- Focus on Conversion Optimization
To increase your digital marketing ROI, you must acquire new customers, so include customer conversion rate optimization into your marketing budget. Conversion rate optimization enables you to obtain the highest online traffic to your site. The traffic can then become converted into customers. Use persuasive landing pages and call-to-action statements, and provide excellent website functionality, to ensure you engage visitors to your site. The more new-customers you acquire, the higher your ROI can be.
- Don’t Only Use Google
Yes, it’s vital your business’s digital marketing campaign is search engine optimized for Google and that you use Google Analytics to identify how well your campaign is or isn’t doing. But too many online marketers put all of their eggs into one basket. Google may be the biggest search engine, but it’s not the only one. Concentrate on using more direct digital marketing platforms to acquire new customers, and you’ll see your digital marketing ROI increase.
- Upload the Right Content
Effective digital marketing must involve posting online content like blogs, press releases, and articles. These methods showcase your brand and can gather more loyalty and support from your target audience. However, too many marketers make the mistake of focusing more on quantity than quality. Bombarding audiences with tons of badly-written posts will not do your marketing campaign any favors. It’s much more important to ensure you upload top-quality content that is tailored exclusively to the preferences and interests of your target customers.