Calculating how much you spend marketing your business is pretty simple. Figuring out how much in revenue and sales you get back is a lot trickier.
Usually, such measurements go beyond sales. Marketing can generate leads, help acquire long-term customers and boost brand identity, all of which will help your business. But how do you know if your marketing is effective?
If you’re not sure, don’t worry; you’re not alone. A Hub Spot survey rated calculating ROI as the second biggest challenge among marketing professionals.
To help, the website SmallBizDaily has put together five metrics and shows who to use them to figure out if your marketing efforts are doing what they’re supposed to.
Author Vikas Agrawal includes information on setting goals using Google Analytics, calculating the value of a lifetime customer, and balancing your costs with monetization.
“There is no single best metric that will truly represent marketing ROI. You have to use multiple metrics to justify marketing budget in the best way possible,” Agrawal says. “However, you need to make sure that the metrics you choose are relevant to your campaign’s goals. If your goal was to increase leads by 100percent, you only need to focus on new leads and nothing else.”