Identify an ROI with your digital marketing investment

In our ongoing series, we will review the 5 core metrics your strategy needs to align with when arriving at that elusive number.

Metric #1: Set a Clear Financial Goal – The Foundation of Identifying an ROI

Sounds easy right? You would think this is something that wouldn’t take much time.

However, the number one reason you cannot identify your return on a digital marketing investment is that you have not defined a clear financial goal.

Even in a COVID environment it all starts with identifying something to target, something that you can weigh your investment against.

Telling your agency or team that you need leads or sales is not a goal, that’s a want. Saying over the next 18 calendar months our company’s goal is to sell 2.5MM in a specific product line is a legitimate financial goal that you can build a marketing investment strategy around and target as you move towards that goal.

Before you identify your goal you need to ask yourself three things:

  1. Am I being realistic?
  2. Is this financially achievable?
  3. Will I have the funds to invest in a strategy that will help me achieve my goal?

Look, we all know COVID has changed the game for many of us. Just breaking even or possibly matching 2019 numbers would be considered a huge win. However, when you set a clear financial goal, no matter what the goal is, it forces you to look at your current sales funnels to see if the goal is realistic and, if not, how much it will cost to address the funnel deficiencies so you can hit your goal.

Keep financial goals in mind when you task your agency or internal team with a new campaign strategy. You cannot walk into a campaign without this stated or, even if stated, without arming your teams with the right investment. This will make the campaign unrealistic, which in turn will only cost you money.

If you are working backwards and are looking for your ROI in 2020 or 2019, you simply use the year-end number as the number you will use as a weight vs spend. May need to just dump this as it could be confusing.

Now that you have a financial goal stated, lets go to the next step: Identifying funnel deficiencies.

The Most Overlooked Expenses of Acquiring a Client

Please download our whitepaper to learn more about why your customer acquisition cost (CAC) is one of THE most valuable numbers in your business finances.