Why measuring your marketing ROI is so important
Businesses calculate their returns on investment (ROIs) on many different departmental projects. In marketing, ROI is a key performance indicator (KPI) that measures the level of success of a specific initiative over time and based on a pre-determined goal. ROI is a gauge to evaluate the true impact of your marketing investments—whether on your top or bottom line, or any other objective you set for your company. In other words, measuring your marketing ROI allows you to pinpoint which marketing campaigns work and which do not. As a result, you’ll be able to better align your budgets and efforts.
Measuring your marketing impact
When you develop a marketing plan, you establish objectives, strategies and tactics. Without it being your only KPI, the ROI will enable you to determine whether or not your marketing strategies are achieving your goals. Knowing the ROI of each marketing tactic helps you make well-informed decisions, including continuing or stopping a campaign, changing your overall strategy, or tweaking some initiatives that are generating lackluster results. In a nutshell, your ROI is crucial in measuring your marketing impact.
Most companies rigorously monitor the ROI of all their departments—and marketing is no exception. Marketing plays an important role in increasing an organization’s economic growth, revenues, notoriety, customer acquisition, client loyalty and brand value. As you can see, your marketing ROI can be measured on several fronts.
The ROI of your online marketing
When it comes to online marketing, measuring your ROI is not just about time or money. For example, online marketing campaigns are often designed to boost awareness on the web and social media. The number of people reached or followers can be KPIs you want to monitor. If you want to improve your customer service on social media, you may consider giving your team a target average response time of X minutes by the end of the next quarter. For your web team, you may want to measure the evolution of your website’s conversion rates over time.
In sum, ROI is the link between a marketing campaign’s performance and your company’s success. Regularly monitor your ROI to make sure your marketing is on the right track—and that you’re meeting your goals!
Hootsuite. ROI des médias sociaux : tout ce qu’il faut savoir. . https://blog.hootsuite.com/fr/roi-des-medias-sociaux/. 17 mai 2017.
Benbya, Amine. ROI : la mesure de tout investissement marketing. LinkedIn. https://fr.linkedin.com/pulse/roi-la-mesure-de-tout-investissement-marketing-amine-benby. 26 juillet 2016.
Google support. À propos du retour sur investissement (ROI). https://support.google.com/adwords/answer/1722066?hl=fr.
You may also want to read
Exporting internationally is not a decision that you can take lightly.
Did you know that online reviews have become important criteria for potential customers as they decide with which company they want to do business? Google also takes into account customer reviews to rank websites on its search engine.