What is Marketing ROI?

A digital marketing campaign’s sales is referred to as the marketing ROI. Measuring the ROI helps you understand which metrics in your campaign are successful. Some of the metrics to keep in mind include:

  • Generated sales leads
  • Page views
  • Lead conversions
  • Increase in followers

Sales, or revenue, is the most critical metric that helps determine your marketing ROI. The bottom line is if your business is making or losing money. 

How to Measure Your Marketing ROI

  1. Measure Conversion Rates to Assess Marketing ROI
    • Measuring conversion rates will help you understand if your digital marketing campaign converts visitors into leads.
  2.  Measure Cost Per Lead to Assess Marketing ROI
    • If your marketing campaign brings in leads, it is important to know how much you spend on each lead. If the cost calculates to be more than the total after closing the sale, you have a negative ROI and should seek to make adjustments.
  3.  Measure Cost Per Acquisition to Assess Marketing ROI
    • The average cost of bringing in a new customer is known as cost per acquisition. To calculate this, you need to divide the total amount spent on the campaign by the number of total sales created through the campaign.
  4.  Measure Customer Lifetime Value to Assess Marketing ROI
    • The customer lifetime value determines what your customer is projected to spend throughout their lifetime.

How to Improve Marketing ROI

  1. Measure Effectiveness of Core Metrics
    • Sales, leads, and traffic are the most important metrics for marketing campaigns.
  2. Experiment with Marketing Channels
    • Some marketing channels include:
      • Paid ads
      • Direct response marketing
      • Email marketing
      • Social media marketing
      • Brand ambassadors
      • Customer loyalty programs
      • Video marketing
  3. Implement A/B Testing Across All Platforms
    • Implementing A/B testing by changing copy, graphics, or links can make a difference in a customer’s buying choices.
  4. Focus on Your Ad Spend and Income
    • It is crucial to know how much you are spending if you want to improve your marketing ROI.
  5. Conduct Marketing Research to Understand Your Target Audience
    • Marketing research is a great way to know what your audience is looking for.
  6. Personalize Your Marketing to Improve ROI
    • Today’s consumers want to feel like companies know and care about what they want.
  7. Utilize Email Marketing to Improve Your Campaign’s ROI
    • Email marketing consistently outperforms most of the other channels in digital marketing campaigns.
  8. Share Data and Offer Seamless Experiences Across Platforms
    • All your systems must share data and be able to work seamlessly to help improve your customer’s buying experience.
  9. Reward Customer Loyalty to Boost Marketing ROI
    • Customers who frequent your business like to be recognized and rewarded for their loyalty.

Learn more about Measuring Your Marketing ROI at business.com

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Tom Foerstel : Founder & President

Tom Foerstel

Founder & President

Growing up in the San Francisco Bay Area in the 60’s, Tom developed a strong desire to create positive change for people and planet.

He went on to pursue his passion for art and design at Art Center College of Design in Pasadena, California, and worked for design firms in Southern California before moving to Boise, Idaho in the early 80’s. Foerstel Design opened its doors in 1985. Since its inception, the firm has cultivated a bold, happy, forward-looking team focussed on creating distinct and effective work on behalf of their clients.

An integral part of Tom’s philosophy is giving back to the community in which he lives — a company cornerstone that drives Foerstel’s long history of providing pro-bono services to local non-profit humanitarian and arts programs.

One of Tom’s proudest personal achievements is his ability to say Supercalifragilisticexpyalidocious backwards.