What Metrics can Your Business Use to Measure ROI for Digital Marketing?
American magnate John Wanamaker once said
“Half the money I spend on advertising is wasted. The trouble is I don't know which half.”
So how can we know whether our digital marketing spend is well spent?
Columbia Business School Professor and marketing guru David Rogers mentions a set of 4 metrics.
The set of metrics aim at measuring the overall level of engagement and interest of your target audience as well as your ROI by comparing campaign costs with financial returns.
The metrics are audience, channel-based, universal and financial. Let's see what they are in details.
1. Audience Metrics
They measure how much the campaign has reached the target audience and can include:
Demographic data from customers who purchased your products and services
Volume of traffic to your webpage
Number of views to your webpage
2. Channel Engagement Metrics
They measure attention and interaction with your target audience for each digital specific channel:
Twitter: number of re-tweets and messages
Facebook: number of comment and interactions on your Facebook page
Website: time spent on your site
3. Universal Engagement Metrics
These measure the relationship between your customers and your brand:
Brand awareness and brand sentiment through customer research
Purchase intent to identify how many customers will buy your products / services
Customer satisfaction measured by online surveys
4. Financial Metrics
These metrics measure financial results of your marketing campaigns where ROI = (Return / Investment) - 1 * 100%. They may include:
There are many other metrics, but this set is definitively a good starting point to assess your digital marketing strategy.
If you are interested in Marketing and ROI, you can visit the Center on Global Brand Leadership at Columbia Business School.
If you like to discuss your digital marketing challenges please get in touch at email@example.com