Currently, only 15% of marketers rank ‘proving ROI’ as their No. 1 priority, and only half are doing anything to measure it at all. But if you want to secure a bigger budget in 2015, you’ll need to prove the real impact your campaigns are having on overall business performance.
In turn, you’ll open new doors to bigger and better opportunities for creativity, increased performance and personal growth.
According to the IDM B2B Barometer, over half of marketers are reporting year on year budget growth in 2014. So what can marketers do right now to successfully prove ROI from their digital marketing activity, improve their impact on business performance and secure that 2015 budget?
1) Build a team of analytical marketers
70% of B2B Marketers admit their team has ‘gaps’ in the digital skills they require to confidently measure ROI - most notably a lack analytical and reporting skills. It can be difficult to get your team thinking beyond digital metrics and onto overall business objectives. Whilst traffic volumes, CTR’s and page views will always play an important role, a bigger focus on overall business impact is where the real intelligence lies.
But with so much data available through digital channels on a daily basis, it can be difficult to know where to start to get your team up to speed.
A recent article from Marketing Week says, “With so many ways to measure ROI, there is not necessarily a one-size-fits all approach to training marketers to calculate it and build business cases…”
Consider using an ROI forecasting tool to introduce your team to performance analysis and forecasting at every stage of the funnel. They’ll develop hands-on experience in making smart business decisions, and build a deeper understanding of the metrics that really matter.
2) Look past revenue and spend metrics to benchmark your performance
The amount of data available to marketers is growing every day. With attribution becoming easier, insight beyond ‘top-of-the-funnel intelligence’ is becoming more accessible and valuable to campaign measurement.
If you’re not measuring conversion at every stage of the sales cycle, how can you identify leaky sales funnels and identify opportunities to generate the very best ROI possible? Stay in control of your marketing activity by benchmarking conversion rates against industry and company levels, and keep in mind the results your senior management want to see.
3) What ELSE do senior management want to see?
Performance data for online channels can be difficult to present effectively – senior management want to understand your digital results in the context of wider business objectives. If you really want to be successful, avoid campaign metrics and consider going above and beyond measuring ROI.
Can you tie customer acquisition costs and even customer lifetime value into your analysis? How has your campaign impacted retention or brand reach? The best marketing metrics to discuss with senior management will always look at the total value of marketing activity in relation to wider business revenue and acquisition costs.
It’s easy to pull reams of analytics from your digital marketing activity, but always remember to tie your analysis to your overall business objectives.
Use that insight to forecast your marketing activity’s future impact on business performance and you’ll find bigger budgets, opportunities for new channels, and professional growth will come your way in 2015.
Meet Lead Forensics on stand 544 at ad:tech London.