How do you know if you are wasting money on website referrals?
Have you ever wondered if that listing directory you’re paying £50 a month for is bringing you any customers? Or Social Media, is it worth all that time and effort?
If you are paying for any form of marketing you need to know your Return on Investment (ROI), after all, why pay for advertising that doesn’t work?
Online marketing is no different. But understanding your online ROI can appear difficult.
Here’s a guide to tracking your online marketing campaign ROI.
Define a quantifiable goal
Whatever the purpose of your website, you should be able to create a quantifiable goal. For instance, you are trying to get people to take out a mortgage. They download the application form from your website. You know that 1 in 10 downloads are returned and 1 in 10 of those are successful, leading to £1,000 revenue for your business. Simple maths shows that each download is worth £10.
Track that goal
Whatever the goal of your website, you need to configure your web analytics to track it. It takes a bit of effort, but you can track purchases, downloads, views or contact form submissions. You can also set the value equal to the value to your business for accurate ROI calculations.
You are now in a position to measure your ROI. You can look at your analytics reports to see how much revenue advertising & marketing campaigns actually bring in, measure this against its cost and you have your ROI.
Ditch costly campaigns
You should consider ditching anything that does not have a positive ROI, even Social Media activities which have an associated time cost to them. If you are paying a referrer and it is not bringing in more than it costs, ditch it!
Let’s recap: to measure our ROI we need to know and measure the value of specific actions that take place on our website. We can then understand how much revenue each advertising campaign brings in, making ROI a simple calculation.
If you need help configuring your web analytics, eGenie can help.
If you don’t have the time to measure ROI, eGenie can help.