Measuring marketing ROI: Five ways to determine if your marketing is working
Here are five ways to determine if your marketing is as effective as you like.
1. Return on marketing promotion
Subtract the cost of the marketing promotion from your sales directly related to the marketing campaign to determine if it was worth the investment. However, the impact of marketing on sales may take time to develop. So be sure to give your customers time to act and yourself the time to measure accurately.
2. Past marketing results
If you've run marketing promotions before and tracked the results, those benchmarks could lend insight into the success of your current campaign. However remember, the time of the year or channel utilized may affect the outcome of your campaign.
3. Industry standards
If you haven't run previous campaigns, benchmark your results against industry standards to help determine whether you're on the right track. Trade publications and their websites, as well as industry associations may research and publish benchmarks.
4. Customer acquisition cost
Compare your customer acquisition cost — the expense associated with convincing a first-time customer to buy your product or service — before and after implementing your marketing strategy to see if the cost has decreased.
5. Online activity
Track the number of customers who come to your website from social media sites or other channels where you're running the promotion. And if you are a brick-and-mortar retail establishment, track the foot traffic or the in-person visits.
Learn more about calculating marketing ROI.