ROI Marketing-Measure Marketing Return on Investment
Converting your website into a profitable conversion machine is no longer limited to e-commerce sites. Inbound Marketing is ROI Marketing. That means you can track your marketing investments for:
Inbound Marketing is a process that attracts Visitors, generates Leads, and ultimately nurtures leads into Customers. A good Inbound process is ROI Marketing at its best. Dollars applied to data points become platforms for better, smarter, more efficient future marketing investments. Inbound can circumvent the pitfalls of outbound interruption marketing. Inbound makes the most out of target marketing and lead qualification, and can be seamlessly integrated into your sales funnel.
A successful Inbound Marketing effort is a successful ROI marketing effort. It’s all about measuring and monetizing your marketing from lead-gen through purchase and re-purchase. Understanding Inbound Key Performance Indicators (KPI’s) will then indicate your actual ROI marketing through inbound channels.
Measure Return on Investment with Inbound Marketing
Inbound Marketing tactics of individual businesses may differ from one company to another. But there are standard KPI’s that are universally used to measure ROI marketing.
Your website from organic, referral, or direct channels, can be measured through a few criteria: Unique Visitors, New Visitors, Returning Visitors, et al, noting Visitor entry points to your website as well as the source from which they came.
ROI can be applied to source channels based on the investment required to create Visitors. Measure traffic generated through your strongest channel versus the time & money required to generate those Visitors. Likewise, you should evaluate lower volume traffic generators versus the dollars invested.
At this point it’s too early to determine whether it was worth the time, money, and effort invested in each channel. You’ll want to track your Visitors all the way through the purchase funnel before making any sweeping changes to your search engine marketing. You’ll also want to look at how effective your website is in promoting return visits.
Traffic statistics alone can mislead you into thinking your are operating efficiently in ROI marketing, when in fact you are not profiting much from the visits. Lead generation rates are actually more important as these rates measure how many of your visitors actually become leads you can nurture into becoming actual clients (conversion).
A vast majority of website visitors – especially new visitors – may not make an immediate purchase. Most of the time, however, they may be interested in other avenues like subscribing to an email list. These visitors are evidently interested, but not enough to purchase…yet! These are your website’s leads. How many leads per visitor you acquire shows you how effective your ROI marketing is in terms of enticing your traffic into taking positive action in the direction of a closed sale.
Finally, visitors or leads who purchase goods or services from your website are conversions. Conversions equals customers. Obviously, conversion rates are important for ROI marketing as they directly impact the bottom-line: profitability. The correlation between your traffic generation and conversion rates, however, can easily be misconstrued. For instance, it’s natural to assume that the more traffic you gain, the more your conversion rate will increase. In reality, however, this assumption lacks at least one more factor: the qualification of the traffic.
If one traffic channel brings in thousands of visitors a day but all of them are only mildly interested in your goods and services, then you can expect low conversion rates from them, which means your ROI marketing through this channel yields low profitability. If another channel brings in just below a hundred visitors a day but nearly all of these visitors become leads or are direct clients, then the high conversion rate for this channel makes it more profitable than the former. ROI marketing performance metrics should be used in relation to each other to gain the most valuable insights.
What is ROI Marketing all about?
ROI marketing is about tracking your time and monetary investments into your online marketing plan. Consistent tracking & measurement throughout the Inbound Marketing process gives you the data you need to make smarter marketing investments. To learn more about Inbound and ROI Marketing, sign up to be notified about our regular Webinar Series.