Measuring Marketing ROI: The Marketer's Toolbox for Measuring Success
Before any good marketer launches a marketing campaign, they ask themselves one very important question. Will I see a return on this campaign investment?
No matter the size of the investment – if you’re putting dollars in, you’re expecting to see dollars back. Not just for the sake of a successful campaign, but the profitability of your company.
The question of how to measure that return though is a tricky one. A question with no straight-forward answer. I know, NOT what you clicked into this blog to hear. But bear with me, as I’ve provided tips and resources below to help you make sense of your marketing dollars spent.
Determining Marketing Campaign ROI Benchmarks
There is no one magic benchmark for determining overall marketing ROI. All marketing tactics are different. What’s considered “good ROI” varies based on several factors – type of strategy, channels used, industry, etc.
Determining the ROI on a paid digital ad campaign run through a platform like Facebook or Google Adwords where you can see what you put in and what you got out is different than determining ROI on a content marketing strategy. But, that’s not to say it can’t be done.
The best formula for measuring ROI is [((number of leads x lead-to-customer rate x average sales price) – cost or ad spend) ÷ cost or ad spend] x 100, as defined by HubSpot. In real terms, multiply the number of people who submit their personal information for an offer, trial, or subscription with your company by the rate at which you convert leads into customers by your average sale or deal price. Subtract your ad spend or the total cost of your investment in the campaign and multiply your total by 100.
When calculating “cost or ad spend,” be sure to factor in the cost of creating and promoting. This is especially important with content marketing as creating content for content marketing takes time — and time is money.
In addition to the hard and true dollar amounts resulting from your campaign, we encourage you to consider the non-financial gains too. While you may not be able to tie brand awareness or loyalty, social followers, likes, and shares, or high-quality site traffic to immediate ROI, that doesn’t mean these wins won’t offer some return in the long term!
What's in the Modern Marketers ROI Toolbox?
Measuring the impact of your campaign can be next to impossible without the right tools, but as our friends at ChiefMartec.com have mapped out, there are more than 5,000 marketing tools out there as of April 2020!
So it's understandable to be a little lost when thinking about the kinds of tools that help to measure marketing effectiveness and tie things back into your Marketing efforts. Here is a list of some of my favorite tools for measuring marketing success:
Utilizing UTM Codes
Want to know one of the most important tools in our toolbox? UTM codes (aka UTM parameters, aka tracking tags). While most reporting will allow you to see the source of your traffic, UTM codes will help you attribute traffic and conversions to specific pages and posts within the traffic source.
A UTM code is the snippet of text added to the end of a URL to help you track where website traffic comes from and thus, attribute the success of a campaign to specific pieces of content.
While we use HubSpot, you can also use Google Analytics to create your UTM tracking codes.
Associate Activity to HubSpot Campaigns
You can take tracking tags a step further by grouping all campaign related codes under one campaign. HubSpot makes this easy for us marketers in their Marketing Hub.
Last year for Inbound – HubSpot’s Annual Inbound Marketing Conference – the Stratagon team initiated a campaign to promote our presence at the event. Every email, blog post, social post, landing page, CTA, automated workflow, etc was tracked in a way that allowed us to measure the overall success of the whole campaign.
Hubspot Campaign View
When all was said and done, we could see how many new contacts and closed deals were influenced by the campaign and the revenue attributed to the campaign.
Multi-Touch Attribution Reporting in HubSpot Enterprise
Ultimately, we as marketers want credit where credit is due. We want to be able to tie a closed deal back to our hard work (sometimes sweat … and sometimes even tears). We want to be able to stand in front of the other departments in our company and report our successes. That’s attribution!
For some marketers, attribution might be a little intimidating. There’s always the possibility that your hard work isn’t actually influencing lead acquisition or closed deals the way you and your company may have thought. That’s ok! Best not to leave it out-of-sight-out-of-mind. Attribution models provide you with a full picture look at your performance – a baseline – and there’s only one way to go from there… up!
With HubSpot’s Marketing Enterprise, access to HubSpot custom reporting functionality, and deals tracked in HubSpot Sales Hub – you can take full advantage of the multi-touch attribution reporting HubSpot has to offer.
Each of the previously listed tools should provide you with everything you need to advocate for you and your team in the future. The insight you now have at your fingertips will equip you to have conversations with your organization regarding investing in or amping up resources (people, new tools, budgets, etc.).
Still need help convincing the higher ups of your true value? Partnering with a marketing agency can help you not only strategize and implement, but tie reporting back to real sales. Reach out to us today, let’s start uncovering you and your team’s full potential.