There’s one secret in the world of digital marketing that most people aren’t willing to talk about. That secret is that the ability to know your return on investment is an absolutely essential skill. Without knowing your ROI, you can’t effectively manage a digital marketing campaign of any kind.
Why do so many people keep this secret to themselves? Well, there are a few reasons. For starters, the concept of digital ROI is not new. There are a very small number of people who don’t know about it and even fewer that don’t understand it. And then there’s the industry as a whole. Most digital marketing agencies don’t want you to know about it because they want to keep the money flowing, and they know that if you really knew how to track your ROI, you wouldn’t need them anymore.
If you’re new to digital marketing and you don’t know how to measure your ROI, you need to know two things. First, every dollar you spend on digital marketing should be budgeted toward a specific campaign goal. Don’t just throw money into the wind and expect it to cause a miracle somewhere down the road. Second, you should have a full-proof method of tracking your ROI that involves lots of testing, research, analytics, and online video.
The second point is the key! You need to make sure that your ROI is tracked very specifically. If you don’t, then you’re never going to be able to know how well your marketing campaign is working; continue reading this to learn more. To use digital marketing to grow your business, you need to know that it’s working. If you’re not tracking your ROI, you don’t know if your digital marketing is working. It’s as simple as that.
It’s all about how much it costs to convert a person into a customer
If you don’t know how much it costs to turn a visitor into a customer, you’re not going to get far in the world of business. In fact, there’s a lot you simply won’t understand. You won’t understand why social media is important or how to use Google AdWords properly. Without knowing your ROI, you’ll never be able to make your marketing work for you.
Forget about marketing fluff and vague feelings. The truth is that businesses need to track only one thing when it comes to digital marketing. That thing is return on investment.
There are only two numbers that matter in digital marketing
The two numbers that matter the most regarding digital marketing are your cost per acquisition and return on investment. If you don’t have these numbers, you’re just flailing around, hoping something will work. But if you know these two numbers, you’ll be able to plan and organize every digital marketing campaign correctly. You’ll know exactly what to change to make all of your future campaigns more efficient.
Without understanding these two critical numbers, you’ll never be able to know how effective each marketing campaign is. If you know these numbers, then you’ll know exactly where all your money is going, and you’ll be able to improve your marketing program by making necessary tweaks.