Return on Marketing Investment
Return on Marketing Investment
Accurately calculating Return on Marketing Investment (ROMI) has been called the holy grail of marketing measurement. However, understanding how each marketing activity impacts revenue and profits can be complex and time consuming. Epic Ivy helps to bridge this gap by automating the important data collection, then connecting the dots between the total cost of the marketing activity that leads to the contact, deal, and ultimately the value sale.
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If your customers don’t buy on-line via a web shopping cart, how to you attribute a sale to a specific marketing activity? If your company attends tradeshows, advertises with Google Ads, sends direct mailers, how to you ensure that phone calls, chats, on-line chats are accurately attributed to the appropriate marketing activity?
If you ask a new lead how they found you, they may be able to tell you that they saw your company at a tradeshow but they can rarely tell you that they clicked on an organic search result vs. a Google Ad campaign, let alone which campaign, ad group or specific ad they clicked on. If you are spending $2k or $20k a month on Google Ads, you may know that Google Ads is generating leads. But do you know- truly, confidently know - if you could spend that money more effectively with Google Ads or another activity?
Having the needed data associated with each step of the process allows you to better assess:
- How Visitors find your site. Google Analytics is probably the best at this. This provides great top of the funnel analysis. And if you only advertise on-line & sell via an on-line shopping cart, Analytics can probably provide you with all of the data that you may need. If you market via other channels or don’t sell via a web shopping cart, you’ll want more analysis.
- When, where and why a Visitor becomes a Contact. You may receive inquiries via a website form, which means that you should also be able to determine how the Contact became a Visitor. If you also receive inquiries via phone, chat, email, in person, and from events, how do you track the corresponding marketing activity for each Contact? If you have a website, don’t give Visitors a link to email you. For forms, chats and phone calls, you’ll want to get consistent.
- Is it really a Contact?Just because someone contacts you doen’t mean that they want to buy something from you. Many times they are trying to sell you something. In analyzing MROI and your cost per lead, we think it is equally important to quantify Contacts that are spammers vs. potential buyers.
- Is it Deal-worthy? While it is important to know which Contact inquiries have a good product/solution fit, which activities can almost guarantee a good fit. For example, does the inquiry result in a Meeting or Sales Proposal? If yes, it probably means there is a real sales opportunity because people are too busy to waste their time (and sometimes they even feel bad about wasting your time) if they aren’t genuinely interested. Understanding where your Deals come from is critical for determining your Potential ROMI. First, you’ll be able to understand where your Deals are coming from, the average marketing cost associated with such, and then you can start investigating why Deals don’t close. Is your sales price too high or too low? Does your product or solution have a deficiency?
- Did we get the Sale?!! And most important to our ROMI analysis is which Marketing Activities are generating Sales. You can take those numbers to the bank. And by “bank” we mean the management/ownership team who doles out funds for next year’s budget. Yup, if you show those people the numbers, then you are definitely increasing chances of getting a bigger slice of that pie. And why wouldn’t you, you’ve just proven that you can make a bigger pie!
Epic Ivy provides many tools to optimize and streamline this process to make it as easy for your team as possible. However, you need to be relentless to ensure accuracy of data that is manual entered, such as adding Contacts received from a Tradeshows, Customer Referral or other manner that can’t be automated. Missing data will skew the results.