Making assumptions about your ROI can devastatingly backfire. Further, when we are living in a world of analytics and information, it is quite unwise not to use the available tools and track your performance in the market. It’s a numbers game out there but around 44% of local marketers haven’t yet put their focus into ROI tracking. The survey done by RevLocal also suggests that a majority of local marketers are still taking market feedback through questionnaires and direct questions like “How you found us?” or “Would you recommend our brand to your friends?”. With growing number of marketing channels available today, it is easy to get distracted by there are plenty of reasons why you shouldn’t be taking off focus from ROI tracking.
Measuring Return on Investment (ROI) will give you a better understanding of how your marketing dollars have been spent in a particular campaigns and how effective the campaign had been. With this data, you will be more ready for your next campaign. Further, the ROI also suggests the profitability of a campaign and thereby determine a more calculated marketing budget.
As a marketer, it is your prime responsibility to make greater sense of the weekly / monthly / yearly reports that you go through. To be able to make sense of the numbers can be a complex process but is nevertheless necessary. They provide answers beyond the limits of the number of impressions or clicks you receive on your website. ROI analytics will help you drive these numbers into tangible profits.
It is very important to know the number of fresh leads you have been able to generate with your new highway billboard. If you have launched a search advertising campaign, it helps if you know the number of new customers it reached. With new tracking technology, you can even identify your leads according to their age, sex, professions and even hobbies. These details will always help identify the best market and launch a more targeted campaign.
Unless you do some kind of ROI tracking, you will never know if marketing investments were actually adding to your revenues and credibility. If you had revamped your advertising strategy for a month now, it would help if you have the details of the new customers it generated. There are software systems and intuitive applications that do it for you. Marketers can seek to get the output in the form of numbers or graphs to reach their bottomlines.
As they say, a failure is another step closer to success. Marketers learn by experience and it is especially true to SMBs. You need to know which line of marketing creates the maximum conversions for your business. It is telephonic persuasions, it is a web form or has it been display ads that attracted your maximum customers? Having all of this information in a single digital space, it becomes easier when you are looking for the next best change in strategy.
Marketers who don’t yet track their ROI use their intuition as an alternative. However, as long as experienced is not backed up by strong numbers and facts, it would be just like a game of luck. The market is changing in ways that you wouldn’t have imagined a decade ago. There are new competitors; new products and even the buying behavior of customers have drastically changed. ROI and analytics applications are the key to take calculative risks and not just taking a chance.
It’s true that there will always be marketing benefits that cannot be tracked. Things like brand awareness where people know about your products but haven’t yet spent any money in them or the buzz you receive from social media that hasn’t yet converted itself into increasing revenues. However, you should be more worried about the changes that are currently taking place. Understanding the market and the advertisements they respond to is an asset to any business. It’s a continuing process and being able to move with the change is the key to success.