Are you tracking your marketing ROI? Do you know how to?
Probably not. And that’s the issue.
It’s not as if it’s rocket science…
It’s worse.
You likely have no idea what marketing is working and what isn’t.
Sure, a post might go viral, and you see more sales; that’s easy. But what about your other efforts?
Tracking ROI is seen as a dark art despite SO MUCH DATA being everywhere.
Here’s a clear and practical way for you to actually understand what works.
Why This Happens
Marketing measurement is a mess.
There’s so much data out there of this metric, that metric, these two numbers blended together, ratios, percentages, probabilities, scores, and heaven knows what else.
But the reality is grim reading:
- The Tracking Deficit: Only 36% of marketers report being able to accurately measure their ROI. The rest are guessing.
- The Attribution Fog: 47% of businesses actively struggle to measure ROI across multiple channels because cross-channel attribution is genuinely difficult.
- The Burn Rate: Up to 60% of SME marketing budgets are entirely wasted due to a lack of strategic planning and precise tracking.
Get the Basics Right
To measure success, get the basics right.
Pick one clear objective
Is it more customers? More sign-ups to your newsletter? Or is it something as complex as measuring how much it costs to get your customers? You cannot know how successful you are if you haven’t defined the target.
Ignore Vanity Metrics
Likes, impressions, and page views are distractions. They don’t really give you anything useful. Focus on the ones that put the money in the bank, such as Cost Per Acquisition (CPA), Return on Ad Spend (ROAS), or defining where your customers came from before purchase.
Select Your Data, Put Analytics To Work
To measure marketing performance, you need data.
Tag Everything & Check Your Analytics
UTM parameters are your track and trace. Put them on every link and be able to track where people found you. If you’re using analytics platforms, remember to check them regularly.
Use software
Set up your analytics to track your metrics properly from start to sale. When the money comes in, you should be able to follow the path back.
Just Ask
When in doubt, ask the client how they heard about you. Then you at least have a clear cause and effect. Brand awareness is all well and good, but you still need money. Put the steps in place to measure from A to B to Money in the bank.
How to Analyse Your Marketing ROI
You, your marketing manager, agency, or fractional CMO should be able to read these numbers like a book. They will be able to:
- Identify the Anomalies: Where is the ROI unusually high? What went right? What went wrong? Can you recreate it? Put some thought and effort into seeing what work did well.
- Cut the Dead Weight: If a channel hasn’t produced a qualified, trackable lead in 90 days, then leave it. Focus on 2-3 successful channels.
Measured and Useful
Stop fumbling around in the dark with “gut feelings” and get a grip on your analytics. It’ll feel like rocket science at the beginning, but understanding which measurements actually matter makes the difference.