Hi, I'm Reko - Your Digital Marketing Consultant

When businesses want to position themselves in the digital world, a digital marketing consultant can help.

They can provide customized assessments through a process that involves evaluating, optimizing, and developing solutions in their companies.

Businesses need to develop a process to ensure that their web-based initiatives and investments generate results, to do that they must have skilled, professional guidance to get there.

Digital marketing consulting services assist us in fixing any issues that prevent us from having a fully effective online presence.

Many of you may believe that the small marketing department of an organization can handle the consulting process on its own, but this is not the case.

Professional consultancy services provide a fresh perspective and a level of expertise that is difficult to achieve through other methods.

The following are some of the benefits of employing a digital marketing consultant:

Specialization:

Working with a digital marketing consultant allows you to collaborate with experts who have expertise in a variety of marketing fields, including SEO, Social Media, UX, and more.

Costs:

Time is money, and an organization can save money by hiring a consultant. Their knowledge will enable them to solve challenges more quickly.

Return on Investment (ROI):

A professional consultant will verify that the investment is worthwhile, and you may track its profitability using your performance metrics.

Measuring ROI (return on investment) is important to any marketing campaign's success. You can identify what's working or not and what you may modify to boost your performance by measuring the ROI. I'll go through how to manage, evaluate, analyze, and optimize your online marketing ROI in order to implement more effective campaigns and expand your business inside this post.

What is digital marketing ROI?

The ROI of your digital marketing is an assessment of the profits and losses of your marketing campaign that you measure using the following equations:

“[Net profit / total digital advertising cost] X 100.”

Analyzing your digital marketing ROI allows you to assess the performance of your campaigns.

How to calculate digital marketing ROI?

The following formula is used by most businesses to calculate their digital marketing ROI:

(Net profit / total digital marketing costs) X 100 = ROI

To calculate your net profit, just simply reduce your expenses from your income. That net profit is then divided by the total expense. Multiply the figure by 100 to convert it to a percentage. The formula looks just like this:

[ (Revenue - costs) / costs ] X 100 = ROI

For examples, if you spent $5000 on online marketing and generated $30,000, your estimates would be as follows:

[($30,000 - $5000) / $5000] X 100 = 500%

A ratio can be used instead of a percentage to describe your ROI. Divide your total income by your expense to get this number. This is your ratio in comparison to 1. So, in the case of the previous sentence, divide $25,000 by $5000 to obtain 5. Your return on investment (ROI) will be 5:1, meaning $5 for each $1 invested.

The formulae above are quite simple if your objective is to improve sales or income. If your objective is to raise brand awareness, you would like to think about things like brand image and recommendations. Because it's tough to place a value on brand recognition, using those formulas is more complicated.

Why measure digital marketing ROI?

Analyzing your online marketing ROI shows you what works and what doesn't. If you don't track your ROI, you'll never understand if your campaigns are successful. It can lead to disappointing outcomes and wasted marketing resources.

If you assess your online marketing ROI, you can improve your strategies accordingly. When PPC advertising beats emails, you may choose to concentrate more on PPC or strengthen your email efforts.

Calculating ROI also assists you to demonstrate the effectiveness of your digital marketing activities, which enables you to get extra funds.

Digital Marketing ROI Metrics to Track:

To measure digital advertising ROI, you need two key metrics: the expense and the achievement.

When assessing the ROI of your digital marketing activities, keep track of KPIs that directly connect to sales, profit, as well as other business goals. These KPIs include leads, conversions, and client retention.

Take a look at some relevant digital marketing ROI indicators.

1. Cost per Lead

When you're gathering leads for a promotional campaign, you'll need to figure out the cost per lead.

To calculate cost per lead, divide your entire marketing expenses by the number of leads generated by your promotion.

Your ROI is determined by your cost per lead vs the value of each lead.

2. Cost per acquisition

The cost per acquisition is the amount of money it takes you to make a transaction. Measuring your cost per acquisition will inform you how much money you need to generate from each purchase to break even.

Divide your overall marketing expenses by the number of sales you made to get this figure.

3. Average order value

Understanding your average order value will allow you to assess your ROI, just as you read in the previous section on how to determine digital marketing ROI.

You should also keep records of the current average order value so you can set targets to improve it. Even just a little increase in the average order value might result in a massive gain in profit.

4. Click-through rate

You should also assess your PPC advertisements, organic search queries, email hyperlinks, and other promotions' CTRs (click-through rates).

Simply divide the number of clicks by the total number of impressions, and that is the number of persons that viewed your advertisement or an organic search result to get your CTR.

If your click-through rate is low, you will need to improve your strategy or ad copy, or layout. Greater CTRs are linked to higher ROI.

5. Customer lifetime value

To calculate your ROI, you have to know your average CLV (customer lifetime value), or how much a client is valuable to your business throughout their lifetime.

If you spent $100 on advertising to somebody, and they bought $50, you could consider that a poor ROI. However, if they spend $50 over ten years, that'd be a different scenario.

Considering CLV might also assist, you save marketing expenses. CLV lets you focus on the whole lifespan of your client connections rather than simply individual transactions, which saves companies money.

Calculating your average CLV helps you determine how much you can invest in each client while still meeting your ROI targets.

5-Strategies: How to Measure Digital Marketing ROI

With conventional marketing, you spend to reach a large audience, whether it's TV users, magazine subscribers, or citizens of a specific postcode. It's difficult to assess the performance of these methods since you can't trace who responds to advertising.

Digital marketing, on the other side, enables you to utilize tools such as Google Analytics to track, measure, as well as optimize your ad campaign.

See how to assess the digital marketing ROI of these rising promotional strategies:

1. PPC advertising

Pay-per-click (PPC) is an advertisement technique that targets search engine users depending on their search terms.

With Google Adwords, you can study keywords, pick the best ones, and set your budget per click.

You could also link your Google Adwords account with Analytics to track what visitors do after clicking on your PPC ads and also how they assist you to achieve your goals.

Suppose you want to sell $200 goods and your CPC is $2.00. If 100 users click your PPC ad and 10 buy, here's how to determine your ROI:

100 individuals x $2.00 each = $200 spend

10 individuals x $200 each = $2000 return

You may use the common calculation of (Return-Investment) to determine your digital marketing ROI.

So, in this situation, (2000-200)/200 = 9, indicating a 900% return on investment.

Of course, the quality of your PPC ads will have an impact on your marketing ROI. However, because you can evaluate your PPC ROI fast and simply, you may allocate funds to the ads that produce the best results while improving the ones which don't.

2. SEO

With Google Analytics, you can simply assess the actual ROI of your SEO efforts.

Custom goals in Google Analytics show conversions. You may also use Google Analytics to determine the actual value of sales.

Consider the previous case. Let's say your site makes 50 sales each month from organic visitors, each valued at $200, yet you hire a Seo expert for $1000 a month for his services.

1 month x $1000 = $1000 investment

50 sales x $200 = $10,000 return

In this situation, your digital marketing ROI is 900%.

Remember that B2B businesses may not have e-commerce sales to track. Even so, understanding the estimated value of each one of your leads allows you to simply measure ROI.

Google Analytics also allows you to track form submissions, quotation requests, as well as free trials. Then you can see how much earnings your SEO effort generates for your business.

3. Content marketing

Content is cheap to produce and can be updated often to match the demands of your niche.

It's difficult to calculate content marketing ROI because most users won't convert beyond one page. Applying attribution models might help you assess the impact.

However, if you've seen an increase in income and increased website traffic after executing a content marketing plan, your ROI is certainly good.

Keep in mind that content marketing is a lengthy plan and that your one-time investment may pay off for years. It takes years to evolve, and the finest effects generally come months and even years after publication.

4. Email marketing

You may also utilize Google Analytics to measure your email marketing's ROI.

To do so, just pick “Email” as your medium in Google Analytics, and compare the value of your target completions to your monthly email marketing cost. To determine your return, apply the standard ROI formula.

Email marketing costs vary based on whether you employ a free email platform or engage writers to develop your email content.

With solutions like MyEmailFX, you can track clicks, open rates, and unsubscribes to increase your online marketing ROI.

5. Social media marketing

You could utilize Google Analytics to measure website traffic, on-site conversion, as well as sign-ups that come from social media efforts, just as you can with other online methods. Buffer, for example, may track social media activity (likes, shares, and followers).

Then you'll need to figure out how much each new client is worth who comes to your website from social media and buys the product.

Let's assume gaining a new FB follower costs $0.50, and every new social buyer is valued at $5.00. If you attract 10 new followers yet they all buy anything from your website, your return on investment will be 900%.

You could also track the performance of social media marketing campaigns using in-platform statistics on social media sites like Facebook. This will make it simple to figure out how much you are investing per impression or click and alter your spending accordingly to optimize your outcomes.

Digital Marketing KPIs can help you to know whether or not your marketing tactics are effective.

And that is when KPIs come into the picture! To maintain scaling, KPIs let you evaluate the key metrics that matter so much to your company.

Let's take a deeper look at measuring your online marketing KPI.

Begin with a digital marketing performance report which already includes all the most critical KPIs for most online marketing initiatives.

What is Digital Marketing KPI?

KPI (key performance indicator) is a measurable metric that you could use to assess your company's success.

KPIs may measure anything from staff productivity to revenue.

KPIs in digital marketing is measured directly related to your online marketing plans, such as SEO, lead generation, brand awareness, and sales growth.

Your online income, web traffic, and SERPs are examples of measurable data which you may use to improve your digital marketing efforts.

PPC services like Google Ads (AdWords before) or Bing Ads, website analytics platforms like Google Analytics, and lead generation tools, promotional strategies, and even your salespersons can contribute to your KPIs.

Why should you measure your KPIs?

You should track your KPIs to see what's performing and what's not.

If you generate income but don't know where it came from or how your marketing approach contributed, you'll never understand where to reinvest.

For example, a particular source of website visitors may provide practically all of your potential leads and revenues while other promotional strategies generate none.

With tools like Google Analytics and Google Ads, it's easily measurable where your clients come from, cost per lead, what it really costs to gain a customer, and more.

With this insight, you may eliminate ineffective areas of your campaign and improve the successful one.

How to Select the Appropriate KPIs to Track?

It's not a "one size fits all" option when it comes to online marketing KPIs. The greatest KPIs to monitor for one business aren't always the same for others.

To determine the ideal KPIs for your company, start with your objectives and move backward.

There was no need to measure email campaign KPIs if the lead follow-up is solely achieved over the phone or in person.

Whatever KPIs are most important to you to measure, they must fit the SMART model.

The KPIs you should track are:

• Specific
• Measurable
• Achievable
• Relevant
• Timely

To look at it another way, the KPI must deliver a particular outcome that online marketers can assess, that can be defined when achieved, that is related to your objectives, and it can be assigned a date or timeline.

What to avoid tracking?

Analyzing digital marketing KPIs including website visitors, e-commerce analytics, retention, and organic search is basic.

It's easy to gather critical indicators, but it's also easy to monitor useless data, wasting effort and time.

When choosing KPIs, examine whether the data will help you increase your end result. A vanity metric is one you can't act on or impact; hence it's not worth measuring.

Likes on Facebook or followers on Twitter could be tempting to track, but if you are not actively seeking more followers or likes, why bother? It's a useless KPI.

The most Significant KPIs for Digital Marketing

While the particular set of KPIs you measure depends on your organization and the platforms you're aiming with your online marketing efforts.

Most businesses that conduct business online fall into one of three categories. These are some of them:

• SEO (search engine optimization)
• SMM (social media marketing)
• PSM (paid search marketing)
• Content Marketing
• Email Marketing

Most businesses will indeed benefit from using some other general marketing KPIs and metrics.

KPIs for General Marketing

• CLV (customer lifetime value)

A client's lifetime value is the amount of money a customer usually produces over time.

Based on your average customer retention and back-end service or product offerings, this might take several days, several weeks, months, or even years.

• CAC (customer acquisition cost)

The acquisition cost is the amount of money needed to acquire a new client.

Marketing, telemarketing or meetings, or anything else that goes towards your conversion and searching process is all examples of this.

• ROI (return on investment)

The ROI is a result of the first two KPIs. When you evaluate your client acquisition cost to profits earned, it informs you how much revenue you make.

• Conversion Rate

What percentages of users convert to leads and lead to clients are known as the conversion rate.

If you wish to measure each source independently, this is indeed a generic marketing KPI that may also refer to some of the other areas.

You might also keep track of how many leads or conversions you've received.

KPIs for SEO (search engine optimization)

• Search Engine Traffic

Total visitors, unique users, organic search, site visitors, web traffic, page views per visit, popular pages.

And some other KPIs connected to traffic arriving at your website from Google or other search engines are all included in search traffic metrics.

• Backlinks

SEO relies heavily on backlinks. When connected with search engine traffic, this KPI allows you to observe how many other websites hyperlink to yours and how such links affect your ranks and traffic.

• Rankings of Keywords

This KPI would show you where your website ranks for the keywords that are most important to you.

You may observe the change in search ranking over time to discover what is or is not working with your digital marketing strategies.

• Bounce Rate

A bounce occurs when a visitor arrives at a page on the website and instantly leaves.

By analyzing this KPI, you can enhance your web pages and encourage users to remain longer on your website.

• Page and Domain Authority

Your site's domain authority is an indicator of how much importance the search engines award it.

In other terms, how valuable your information is to them. On a page-by-page basis, page authority is just the same sort of evaluation.

KPIs for Social Media Marketing

• Likes, Shares, and Comments

The heart of social media platforms is likes, shares, and comments.

These KPIs can show you how much publicity you're receiving on social networking sites if that's one of the platforms you're targeting.

• Followers Increase Rate

To produce new leads and clients, you'll need a continuous flow of new users. This KPI will track the rate of growth over time.

• Social Media Traffic

The very same metrics apply to social media users as they do to SEO visitors (unique users, visits, source of traffic, and so on), but for social media sites specifically.

You might wish to keep track of both general KPIs and detailed metrics for each platform.

• Social Media Conversions

You may also want to measure total conversions and the performance of each platform, just as you would with social media visitors.

KPIs for Paid Search Marketing

• CPC (cost-per-click)

CPC is among the most important KPIs to measure if you're utilizing sponsored advertising.

• CTR (click-through-rate)

Whenever you pay for traffic, another important KPI to monitor is CTR.

A higher CTR not only increases visitors, but it may also cut your CPC for some advertising networks.

• Quality Score

The quality score of an ad is one of the parameters used by ad networks to calculate your CPC.

A higher-quality score is associated with a more appropriate ad with a higher CTR, resulting in reduced CPCs.

KPIs for Email Marketing

• Signup Rate

Whether you provide a newsletter, case study, white paper, or other benefits, the signup ratio for email marketing is the ratio of website visitors that join your email list.

• Open Rate

The open frequency compared to how many individuals on your mailing lists actually open your emails. This KPI is an excellent measure of the effectiveness of your email template.

• Click-Through Rate (CTR)

You may analyze how many users click on links in your mail to assess engagement whether you add links to pages of the website, service or products, and anything else.

• Bounce Rate

The bounce rate of emails is not the same as that of a website. Undeliverable mail "bounces" return to the sender as an email bounce.

• Unsubscribes

Each e-mail you send your clients is likely to include an unsubscribe link, allowing them to opt-out from your mailing list.

This KPI allows you to measure the number of unsubscribing to evaluate which sorts of communications are the most successful and which ones result in the most unsubscribes.

Conclusion

Tracking the different digital marketing KPIs we've mentioned in this article will provide your marketing team with all of the data they need to make accurate marketing decisions. It is best to appoint a skilled digital marketing consultant to take care of it.

However, keeping this information updated requires a lot of effort, especially if you are promoting across many platforms.