Using Technology to Monitor Marketing ROI
Measuring marketing ROI can be quite a straightforward process if the evaluation is kept simple. If you would like a more detailed evaluation and to consider the impact of the different elements within your marketing mix in combination, more sophisticated tools can be used which will simplify this process for you.
Some of the analytics tools available can take a lot of the pain out of this process, and you should select carefully to ensure that you have the tools most appropriate to your particular business model. Online analytics tools are invaluable in providing insight into the volume and value of the sales resulting from online marketing activity, with some also providing the ability to manage tags and develop attribution models.
For many organisations, marketing initiatives are not limited to online activity and not all sales are delivered online. To this end, other systems will be required to record these sales, and models need to be determined to attribute that sale to specific tactics within the marketing mix.
Bricks and mortar retailers benefit from Electronic Point of Sale systems, which record sales at point of sale and by using customer loyalty programs, have allowed organisations to develop customer specific marketing initiatives as part of their overall mix.
Companies who rely solely or to a large part on sales by telephone can utilise call tracking technology. This monitors the relationship between both online and offline marketing activity and telephone conversions.
A call tracking service allows you to identify which areas of your marketing are delivering sales, and enables you to evaluate the value of each aspect of your marketing mix and modify them appropriately. One key consideration in selecting an analytics tool is whether it will integrate with other systems you are using within your business, so you are able to see all your data in one place and facilitate comparisons across the different channels being used for marketing, and which deliver sales.
The most important thing is that you are able to act on the intelligence provided by measuring your marketing activity to improve marketing ROI. It is important that you approach measuring marketing ROI with the expectation of improving results, since there will be some marketing initiatives that show negative or low ROI performance levels when first measured. Measurements should provide the intelligence to help you improve those initiatives, instead of just eliminating them in favour of new, unproven initiatives.
The process of improving your marketing ROI begins during the measurement planning stage. Make sure your measurements are designed with a clear plan for how the results will be implemented and to influence decisions with the greatest profit potential.
Whilst it is important to generate positive ROI results over a certain level, it is even more important to constantly support the process of measuring and improving ROI. The discipline of continuously improving effectiveness builds confidence and credibility that marketing can deliver results for the organisation. Analytic tools, including call tracking, can contribute to the on-going development of a cost efficient marketing strategy that can increase the number of sales whilst reducing the spend on inefficient advertising campaigns.