As a marketer, your results are directly dependent on strategy and budget. But—to gain buy-in from executives and decision makers, you must be able to confidently demonstrate your ability to contribute to the company’s bottom line.
Enter ROI. Measuring marketing ROI is no longer optional—and while most marketers understand this, it’s a lot easier said than done. In fact, 50% of B2B marketing executives find it difficult to attribute marketing activity directly to revenue results as a means to justify budgets (source).
Continue reading to learn how to identify and fix ROI tracking problems so you can better prove that your marketing efforts are paying off.
5 Signs You’re Not Tracking Marketing ROI Effectively:
You let marketing trends dictate your strategy.
Do you often follow popular marketing trends without much thought about how they stack up to other campaigns and tactics? If so, it’s time to jump off the bandwagon—at least until you have a firm understanding of how much these activities cost and what you expect to gain from them.
Not every marketing tactic or trend will be a good fit for your company and veering from your strategy everytime a new tactic comes along is a surefire way to blow budget.
Tip: Do your research.Before investing resources in a specific strategy or tool, determine how much you’re going to spend, what you expect to get in return, and how it compares to other channels you’re currently using.
You can’t make sense of your marketing reports—or even worse, you don’t have marketing reports.
Do you find yourself struggling to interpret your marketing results? Do you have a hard time making connections between metrics or even guessing what certain numbers mean? This could potentially indicate an ROI problem.
Think about it, if you don’t understand how your campaigns are performing, how will know you’re getting your money’s worth? The short answer is, you won’t.
Tip: Invest in analytics tools. You need to find direct connections between campaigns and sales. Lead conversion software can help provide valuable insight into where your leads are coming from and which marketing activities are returning the most revenue.
You aren’t sure where your leads are coming from.
As long as leads are coming in, it doesn’t matter where they’re coming from, right? Wrong.
Similar to our previous point, it’s easy to lose track of lead sources—but, when you don’t know where your leads are coming from how can you judge which marketing activities are the most effective?
Tip: In addition to using a lead conversion tool, you should also analyze incoming form submissions, call logs, and emails. Carefully note the dates and times that certain campaigns deployed and try to match them to surges in phone calls and emails. Increased inquiries can indicate a campaign’s success.
You aren’t sure where your customers are coming from.
It’s one thing to know where your leads are coming from. But, it’s also important to know which sources drive paying customers. One campaign could generate thousands of leads but not a single sale. If you’re not tracking ROI correctly, you may miss it and continue to pour money into an ineffective strategy.
When you know where your best customers come from, you can better prioritize where you spend your time and money.
Tip: Ask customers how they first heard about your company. While this may seem old-fashioned, it’s a good way to get a general feel for how your marketing efforts are paying off. Combine anecdotal customer feedback with analytics to gain a clear understanding of which initiatives were successful and how to scale that success going forward.
Your team is using disparate methods to track ROI.
Your marketing department may already calculate ROI. If so, make sure all team members use the same methods and calculations to do so.
If ROI is calculated differently each time, comparing metrics will give you very little insight. Think about it, if two people have drastically different ways to calculate a metric, comparing the two numbers is like comparing apples to oranges.
Tip: Establish how you want to track ROI and stick with it. Hold regular meetings and distribute reports to keep everyone in the department on the same page.
It’s easy to get overwhelmed by day-to-day activities and neglect complicated calculations and analytics. But, remember doing so will only make your job more difficult. Don’t let this be your organization!
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