Digital marketing campaigns are vital to success in the modern age. However, for a digital marketing campaign to truly shine, a company must know how to use the data collected from such campaigns to improve their efforts. One such calculation is the ROI (Return on Investment). The ROI is generally used to see how much a company makes from something they invest in. In this case, it would be the returns they earn from investments they made into digital marketing.
That said, calculating your ROI is a lot harder than you might realise. Although there are basic ways to do it, these might be limited in terms of what you can do with the results. For that reason, using more complex ROI calculation methods is vital for long-term forecasting, understanding customer behaviour, and more!
1. Use a CRM tool
One of the most effective ways to see your digital marketing investment returns is with CRM tools. CRM (customer relationship management) tracks leads beginning from the first contact to purchase—starting with your marketing efforts.
With the data produced from CRM tools, you can understand just how effective a digital marketing strategy is. Remember, your goals for each process can be different. CRM tools can track various goals at once—how much revenue you are making, how many leads you are generating, or simply how visible your brand is.
2. Utilize UTM links
UTM links, or Urchin Tracking Module links, are generally used to track campaigns using Google Analytics. You can see this at play with long URLs that have a question mark. When a user clicks this link, Google Analytics tracks that click, where it came from, and what they clicked on.
Thanks to Google Analytics and UTM links, you can quickly understand where your leads are coming from and which campaigns generate those leads. Just note that you should be careful when implementing UTM links, as any mishaps here can lead to bad data that can cause you to make wrong decisions.
3. Implement tracking pixels
Like UTM links, tracking pixels are elements you can integrate into your website to see where users are coming from and what they are clicking. Pixels are handy for pinpointing what your customers are looking at, paving the way for re-marketing and calculating ROI.
There are various tracking pixels you can use, including Facebook Pixel and Google Analytics. Such data will allow you to connect with your customers and understand how effective your digital marketing campaign is.
These three methods are just some of the ways you can calculate ROI from your digital marketing campaigns. Regardless, they are effective methods for determining different key performance indicators to help you understand just how effective a specific campaign is. From how much revenue you made, to how many leads you have generated, to even how many people simply click on a link, these strategies can help you keep track of what is working and what is not. Such information will allow you to continue evolving your digital marketing campaigns, improving them to maximise their effectiveness and your investment.
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