There is no doubt that tracking the ROI of marketing campaigns is essential for businesses – big and small.
Any marketing campaign aims to increase revenue by driving more customers through the door.
But all too often, companies do not have a strategy to track how well their marketing campaign ROI.
This error can lead to wasted time and money on ineffective campaigns, or worse, continuing to invest in
campaigns that are not working. Continue reading to learn how to use marketing automation technology
to track the ROI of your marketing campaigns and optimize your spending for maximum results!
What is end-to-end marketing campaign ROI?
End-to-end marketing campaign ROI measures how well a marketing campaign performs from start to finish.
This method includes initial planning and execution of the campaign, follow-up, and analysis after the campaign has ended. By tracking end-to-end marketing campaign ROI, businesses can clearly see which campaigns are working and which ones are not.
How to leverage marketing automation software to track campaign ROI?
Several different marketing automation software platforms are available on the market, each with its own features and capabilities. However, most of these platforms can be used to track end-to-end marketing campaign ROI.
When choosing a marketing automation platform, look for one that offers robust reporting and analytics features. These features will allow you to track key metrics such as leads generated, conversion rate, and cost per lead. This data will be essential in measuring the ROI of your marketing campaigns.
In addition, you will want to choose a platform that offers automation capabilities. This feature will allow you to automate repetitive tasks such as email marketing, social media postings, and lead nurturing; to save you a significant amount of time and money while also helping to improve the efficiency of your marketing campaigns. If you need help selecting a marketing automation software, please do not hesitate to contact Cleartail Marketing to speak with one of our marketing automation experts.
Which metrics are important for end-to-end marketing campaign ROI?
The most important thing is to track all of the necessary data points throughout the campaign. Implementing a marketing automation technology to automate this process is highly recommended. Below are a few key metrics to consider tracking when setting up your approach to understanding which campaigns are working
Cost per action (CPA)
Depending on the marketing campaign’s goal, actions can be defined as sales, newsletter signups, registrations, or a variety of other goals. A marketing team should first understand the desired action that they are hoping will occur and have the ability to collect all data points that show the action happened before starting any campaign.
After a campaign is complete and all data is collected, the CPA can be calculated. CPA is calculated by dividing the total cost of the marketing effort by the total number of actions that occurred. For example, if the marketing campaign was $1,000 and the number of actions occurred was 100, the CPA was $10.
Cost per lead (CPL)
This metric calculates the amount of money you spend on a marketing campaign divided by the number of new leads you acquire as a result of the campaign. This metric will help you to understand how much it costs to generate new leads through your marketing campaigns.
Customer lifetime value (CLV)
This metric measures the total value, on average, a customer spends throughout their relationship with your business. Customer lifetime value (CLV) is an important metric to track as it can help you understand the potential value of a new customer.
Many marketing teams will move too quickly to stop investing in a marketing channel because they lose money on the first transaction a customer makes. Still, it is critical that they also understand the total lifetime value a customer will bring to their business before determining if a marketing effort is profitable or not.
Click-through rate (CTR)
The CTR is a metric that measures the number of people who click on an ad or any marketing link divided by the total number of impressions. This metric is important to track as it can help you understand how well your ads are performing and whether or not people are interested in what you are selling.
Lead-to-customer conversion rate
Lead-to-customer conversion rate measures the number of leads you generate from a marketing campaign divided by the number of that batch of leads that become customers. This metric is important to track as it will help you understand how effective your marketing campaigns are at generating new customers.
Multi-touch attribution is assigning credit to each touchpoint in
the customer journey. This metric is essential as it will help you understand which marketing channels are most effective at different customer journey stages.
Website conversion rate
The website conversion rate is the number of people who take the desired digital action on your website divided by the total number of visitors. This metric is important to track as it will help you understand how effectively your website converts visitors into leads or customers.
MQL to SQL ratio
The MQL to SQL ratio is the number of marketing-qualified leads you generate from a marketing campaign divided by the number of those leads that end up becoming qualified sales leads. This metric is important to track as it will help you understand how effectively your marketing campaigns generate new sales-qualified leads.
By tracking these eight key performance indicators, you can better understand your marketing campaign ROI and make optimal decisions about where to allocate your marketing budget.
If you want to learn more about how to set up a strategy to optimize your marketing dollars by leveraging marketing automation technology, Click Here to learn more about our services at Cleartail Marketing and watch video testimonials from our clients. Please make sure to contact us if you have any questions!