One goal businesses try to improve Y-O-Y is marketing return on investment (ROI). To help improve ROI, businesses can outline, define, highlight and monitor their campaigns to define the direct effects of each approach.
After all, ROI is the key factor of whether marketing efforts have been successful or not. Here are 7 powerful practices to ensure improved ROI through effective analytics:
- #1 Leverage Analytics Platform
- #2 Measure Strategically
- #3 Support Automation
- #4 More Sales
- #5 Don’t Use Vanity Metrics
- #6 Do Experiments Repetitively
- #7 Make a Decision without Regret
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#1 Leverage Analytics Platform
The right data analytics platform is important towards gaining ideal results out of your available group of solutions. Your focus should be on an analytics platform that not only resourcefully manages data but is also adjustable and scalable.
The execution makes data available across business management verticals, supporting strategic utilization of data for business development, besides guaranteeing improved marketing ROI.
#2 Measure Strategically
Identify the metrics that you will measure in advance of campaigns and integrate various measurements to produce a bigger overall impact.
You cannot have a good return on investment without having a clear understanding of the campaign or marketing effort you are tracking and the strategy involved to achieve your goal.
Examine all outlays concerned with customer value and boost the profit potential of each individual account – and improve targeting for a new audience.
#3 Support Automation
Automation can allow you to achieve efficiency and maximize ROI by getting the software to do the substantial lifting.
For Example- An email auto-responder ‘Aweber’ can deploy an email sequence at breaks that you specify. This can be a great way to add trust and build value with your audience. Even simple automation tools can help you take advantage of these platforms without having to invest a ton of time every day.
When your marketing uses automation to achieve effective productivity and you implement systems for creating new business, you can enjoy a great return on your marketing investment.
#4 More Sales
Customers today are knowledgeable buyers. They make purchases based on blogs, reviews, and social networks. The good news for your business is that you have access to the same information.
Sales are a metrics you need to measure and optimize, and of course also traffic and leads. Targeted traffic to your sales pages will move the ROI needle far more than traffic to a different place on your site.
“Sales Cure All. Know how your company will make money and how you will actually make sales.” ~Mark Cuban
Dig into your data and discover what is working best: Then find more ways to make it work even better.
Use data to increase sales by:
- Use analytics
- Understand the journey of the customer
- Discuss ROI with entire organization
- Build quality backlinks
#5 Don’t Use Vanity Metrics
Vanity metrics like, Facebook fans and press release shares make us feel good if they go up but don’t help us make decisions and don’t correlate to revenue. These metrics may distract your team from the business goal.
Instead, turn your focus to engagement metrics that connect to ROI. And, track metrics like Revenue, Customers, Conversion Rates, A/B Tests, Funnels, Cohorts and Marketing Campaigns.
When you collect the right data, you save time and make better calculations. This helps you to:
- Create better-personalized reports with the company important data
- Regularly track your customers’ behavior
- Analyze the performance of your marketing campaigns
When you truly understand your customer, you can delight them at every step and build your business faster than you could have imagined.
#6 Do Experiments Repetitively
Experimentation provides opportunities for your business to accelerate its growth. Before you get started experimenting is that you need to have a way to measure success and track your reports.
One of the best approaches with experiments is the “test and learn” approach. Take one action with one targeted group, take a different action (or no action) with a control group, and then compare the results. This method keeps the process simple, and results become clear without the difficulty.
Improve ROI on your marketing by:
- Keep some of your budget for experimentation
- Pick one focus area; test until you can’t improve anymore
- Move fast from failed experiments
#7 Make a Decision without Regret
Planning and proficiency can help you carry the day and make the right call in any situation. Your marketing analytics reports are necessary for your business’s success. More significantly, your team should focus on making an informed decision from those reports.
You can satisfy your organization’s desire for more data by:
- Introducing ultimate boundaries on when data collection should stop.
- Ensuring all analytics reports include action items.
- Creating a subcommittee to follow-up on decisions made after an analytical report.
Your ROI depends on how you create and implement your business strategy. From planning to decision-making, your team can lower costs, increase sales and spread brand awareness.
The best performing marketers use hard metrics for each channel, campaign and quality across all marketing touch points that signify how effective each source is in generating revenue.
The better your ROI the more positively you can reinvest in your marketing to scale up your business and your profitability fast.