Typically, the platforms through which you launch your campaigns or web analytics tools will provide you with enough data on their performance to allow you to calculate ROI. For example, in the Google environment you can use the free Google Analytics tool that allows you to track your conversions. We also recommend other platforms such as HubSpot or Marketo , which can offer you more detailed information so that you can better understand the impact of your campaigns.
We recommend that you do not use a single tool to measure ROI in growth marketing, as combining several will give you a more complete view and will allow you to detect potential problems with greater probability.
Practical examples of calculating ROI in a campaign
To help you get the most out of this metric, we want to continue with the previous example where we got a 20% ROI. Now imagine that you got that ROI from a Meta campaign where your ad was shown on both Facebook and Instagram.
The 24,000 euros in profits have not been europe cell phone number list obtained equally from both social networks, as it is most likely that one has generated more income than the other, but the question is: which one has generated more ROI? In other words, the platform that has generated more income does not necessarily have to be the one that has provided us with a higher return on investment, as everything will depend on what is invested in each one.
To do this, we can apply the ROI formula to each platform, but to do so we first need to know what we invested in each social network and the benefits of each one. Let’s suppose that in the Facebook campaign we invested 12,000 and it generated 15,000 euros in benefits; and that in the Instagram campaign we invested 8,000 and it generated 9,000 euros. The next step will be to calculate the individual ROI of each platform.
Done! With the ROI we can clearly see why choose popupsmart alternative? which campaign has had the best return on investment and by how much. This can be interesting for future campaigns because it helps us to know which channel generates the best results and which one we should invest more on.
Factors that affect ROI in growth marketing
We have already mentioned that ROI should not be viewed in isolation, but other factors should be taken into account, such as the time it takes to achieve it and the sector. If we really want it to provide us with valuable information, we must taiwan lists see it in context.
In this section, we discuss other factors that must be taken into account when drawing conclusions from this metric.
- The economic situation : in periods of recession or economic instability, consumers tend to spend less. This can affect your business’s ROI despite having followed the same campaign strategy.
- Investment strategy : Your investment plan for the campaign will also affect the return on investment it generates. For example, choosing a long-term investment may give you a good ROI, but in the same campaign, a short-term investment may not. This is something you need to consider.
- The customer life cycle : For example, if acquisition costs are high because a lot of money is being invested in attracting customers, the ROI may decrease. Another case could be that customers stay with the company for a short time, causing a high decrease in ROI. Therefore, in order to improve the ROI of our growth marketing campaigns, it is very important to optimize the customer life cycle as much as possible.
How to improve ROI on your growth marketing campaigns
Finally, we want to give you three very important tips so that you can boost the ROI of your growth marketing campaigns and obtain very positive results.
1. Segment your audience well
Properly segmenting your growth marketing campaigns will ensure that you actually reach the people who are interested in your brand and, therefore, your conversion possibilities will increase, with the resulting improvement in ROI that this entails.
This, in turn, will prevent you from wasting resources by reaching the wrong audience. Ultimately, segmenting your audience well helps you invest your money better in your campaigns.
2. Adjust campaigns continuously
The ideal thing when launching an Useful tools and platforms online campaign is not to sit back and wait to see what happens. Instead, we recommend that you make the necessary changes periodically to optimize results. For example, you can change the budgets so that more investment is allocated to the ad or ads that perform best.