Tips to Measure Your Digital Campaign ROI

Digital campaigns have many moving parts. Everyone's primary goal is to get the most out of their marketing efforts. Measuring your return on investment [(Net Profit/Total Cost) x 100] gives you crucial insight into the results of your marketing efforts. However, you can't be sure you are reaping all the potential benefits if you aren't measuring the ROI of each component. 

This blog post will give you some actionable steps to measure your digital campaign ROI by service. This measurement level helps you determine what benefit you get from each aspect, so you know which ones merit further investment, adjustment, or removal to boost your overall campaign performance. 

Decide on Your Overarching Objective  

Understanding what you want to achieve is critical to achieving success with your digital marketing campaign. Do you want to expand into a new market and create more brand recognition? Do you have a new product line you want to bring attention to? Setting an objective goal establishes the foundation from which you make all your marketing decisions so that your project stays on track.   

Check Your Key Performance Indicators  

How would you classify a good day? For different people, it may be nice weather, time with family, enjoying hobbies, binging their favorite shows, or accomplishing long overdue tasks. Those would be the key performance indicators of the day's success that would be specific to each person's goals and preferences. The same principle applies to your digital campaign in that you must have a way to measure the performance of each feature of your marketing efforts specific to the goals you want to accomplish.  

Online KPIs  

Specific KPIs give you a sense of your online performance. They provide insight into how effectively you reach and influence your desired audience. Some of the most common include: 

• Growth of overall impression share - Impression share (IS) = impressions/total eligible impressions, or "are you showing up as much as you could be?" An increase means that more potential people who could see your ad are experiencing your message. 
• Cost Per Lead - CPL is a pricing model where the advertiser commits to a specific price per interested party.  

• Return on Ad-spend - ROAS is ad efficacy. It measures the benefit or return you get for the money you are spending on ads. 
• Total actions by campaigns - This KPI measures the total number of actions your audience has taken on any part of your campaign.   
  

Sales KPIs  

Though increased sales are the most direct indication of success, there are other KPIs that will help you determine how well you are moving the needle on growth: 

• Total product or units sold of your goods - This metric lets you know how well each product or product line moves, so you know what makes your customers respond. 

• Overall sales increase month to month - Calculate your monthly growth rate by subtracting the first month from the second month and dividing the result by the last month's total. For a percentage, multiply the sum by 100. 
• Foot traffic - Are more customers coming into your storefront?  
  

Use Good Systems to Collect Data  

The quality of your data is only as reliable as the method you use to collect it.  Quality CRM software allows you to track and store results in a centralized place consistently. It helps you gain confidence in the quality of data while keeping everything accessible to the right people for greater insight into your campaigns.  

Understand How to Interpret Your ROI Data  

Having data is of no value if you don't know how to interpret it and leverage it for your needs. Your team must discern how each metric impacts your goals, such as how the number of site visits or total sales impacts your business health. They will also need to understand which trends are positive and negative. Typically, webpage visitors should be upward, while bounce rates or lead to close ratios should be downward trends.   

Measure Progress Towards Your Goal  

The actual value in your data is understanding how it compares to your goals and objectives. Increased leads and conversions are always good indicators of successful marketing. However, your data can reveal many helpful insights that will help you measure your progress toward your goal or forecast the timeline for achieving the objectives of your digital ad campaign.  

Fine-Tune Your Campaign Performance  

Understanding how to measure your ROI data allows you to fine-tune your campaign as it is underway. You may have a successful campaign overall, but how do you know which part was the most effective or how much better it could've been if you improved one underperforming aspect? Measuring your ROI by service also helps you plan for future campaigns by revealing present performance.