Return on marketing investment (ROI)

[robiulhasan]

As a data-savvy marketer, you will understand the importance of tracking the ROI for each and every one of your initiatives or activities. Your digital marketing ROI dictates how efficiently you are spending your budget on a particular campaign. By drilling down into this all-encompassing metric, you’ll be able to tell if your investments are yielding tangible results.

In this case, the higher the ROI, the better. A solid ROI means that your campaign spend is effective. Should your ROI prove to be low, you’ll be able to drill down into your weakest areas and adjust accor cell phone number list dingly.

Read: Targets and KPIs: your essential toolkit for more practical steps on working with the right KPIs for digital marketing.

How to avoid vanity metrics
KPIs for digital marketing that don’t matter (or offer little value) are sometimes referred to as ‘vanity metrics’. These are numbers that you might want to change, but they don’t actually tell you a lot about actions that you can take to make decisions that help you meet your business objectives.

A general rule of thumb is to stick with action-based metrics that tell a story about customer experience. You can choose them by starting out with some key business objectives.

Take Google Analytics for example. Some metrics, like page views and impressions, could be considered vanity metrics. We all want ‘more’ of them, but are they actually giving you enough information to take an action? Not necessarily.

Sales conversions, on the other hand, give you a reason to act: if they’re low, we need to see why. Is the checkout feature on our e-commerce site working properly? Is there something down on the website? Has an Amazon listing dropped in ranking? And so on.