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Businesses are always looking for new ways to drive revenue while cutting down on margins at the same time. The return on investment in marketing needs to be considered from the beginning as a way to gauge your goals and track your progress. Not only do marketers need to consider what exactly the return on investment is, but which program received the best return. If you measure your ROI correctly, it can garner more trust, a bigger budget, and enable your marketing tactics to increase your business impact.

Why Marketing ROI is So Important

The demand for marketing ROI

The simple truth is that businesses will continue to cut down on margins, and marketing is often the first thing to get cut. If your executives don’t see an inherent worth or return on your marketing efforts, they won’t see a need to keep it around. This means that your marketing department needs to prove its worth. Think of the return on investment as a promise that will outline how your department is going to contribute to the success of the company, as a way to continue to justify the investment in marketing. 

Gauging the metrics for success

Once you start using a revenue-based approach to your marketing strategy, you will need to rethink the metrics that you are gathering. These need to be actionable and provide insights on how and why your marketing efforts worked and how you can approach your marketing efforts in the future. Consider the following metrics when you’re looking at your marketing strategy:

  • Campaign performance – Looking at your campaign's performance can give you an idea of the specific metrics that can tie back to revenue. Whether this is an email marketing campaign, social media campaign, or even an event-based campaign, these metrics have to show your revenue. The best way to measure revenue from campaigns is to look at an increase in sales around the time of the campaign, the value of an average order, or the cost per action. In a revenue-based metric, you’ll focus on these standards rather than the open rates or social interactions, which don’t heavily affect revenue.
  • Channel performance – After looking at your campaigns, you should examine your specific channels. Identify which channels are driving revenue and netting conversions, and compare them to the channels that aren’t performing as well. Optimizing your channels can increase your sales conversions, brand awareness, and channel reach.
  • Business impact – Once you look at your campaign and channel performance, you can identify your overall business impact. Here, you will generate insights that show a definitive return to support your marketing campaigns' decision-based approach. Your marketing efforts' business impact should include revenue growth, shareholder value, and customer lifetime value.

How Marketing Eye Can Help
Marketing Eye is a results-driven marketing agency that is committed to elevating and supporting the marketing efforts of small to medium-sized businesses. Our team of marketers works with you to develop a deeper understanding of your company's pain points and challenges and develop a marketing strategy customized to your business's needs. We want your business to succeed, and we provide a strategy and services to help you get where you need to be. Contact Marketing Eye today to learn how we can help you. 

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Marketing Eye

The Marketing Eye Atlanta team has a combined 35+ years experience in marketing and communications. Marketing Eye Atlanta is well-known for high performance, technology-driven marketing campaigns that deliver results. The team members are experts in all facets of the marketing mix including strategy development, content marketing, branding, website development, public relations, social media, digital marketing, SEO, lead generation, direct marketing, etc.

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