How to Track a Marketing ROI
Updated: Sep 28, 2018
What are your goals? Don't be afraid. You can achieve anything when you become empowered.
But, it's important to know that when you become empowered, you also become responsible as to what you wish for and what you don’t.
One think I NEVER wish for is inefficiency and deviating from authenticity. So, let’s take a few steps toward efficiency and success:
Step 1: write down why do you do what you do.
Step 2: write down what you do.
Step 3: write down who you do it for.
Step 4: write down a measurable goal that when met means massive success.
Let's get organized
Once you’ve taken these four steps, you can track your effectiveness in reaching your goal in an organized way. We'll talk about how to measure a marketing ROI, but other actions can also be tracked to make your life better. I measure:
my efforts to increase reach and generate sales,
whether or not I took my single daily action
my time per project.
What should you track? It depends on your goal.
Do you track your time?
If you track your working hours as an entrepreneur, then you can review them. It helps us stay organized and stress free when we know the amount of time an action should take vs what it is taking. You can rest assured that your time is valued correctly or understand that you may need to outsource some activities.
Single Daily Action
One way to reach your goal is to recognize the single daily action (SDA) that will make the MOST difference in obtaining your objective.
Is your goal to generate leads? Maybe most leads come in the form of referrals; your single daily action could include a tactic to increase them.
Track yourself - check off each day you did your SDA - OR find an accountability partner to check in with you and track it for you. Maybe it's an employee or a well organized spouse.
How to Measure Your Marketing ROI
Since most business goals are financial, measuring your marketing ROI is helpful for attributing success to marketing efforts. When we organize in this way, we can adjust tactics for maximum success, reach goals faster and with less money and understand how to serve our target market, even better.
Let's say you put in 1 hour of your time for your SDA and spend $5 everyday to reach your audience. Last year this time, without doing your Single Daily Action (or any other marketing), organic growth was $600. This year, your monthly growth was $3,100.
Your marketing return on investment was:
($3,100 - $600 (($41 of time * 30 days) + ($5 * 30 days)) / $1,380 = 81%
In reality, marketing is a long-term, multiple-touch process that leads to sales growth over time. Make sure you you attribute your success to some sort of action. There are plenty of ways to do it.
If mine is a Facebook ad, I can install a Facebook Pixel that relays to me when someone takes a desired action after they saw my advertisement.
If it’s reaching out via a direct message and inviting people into business with me, keep a track record of where each contact is in your funnel.
If you's like help setting up this type of tracking, email me. I consult people doing what you do to reach your goals in the most optimized (and authentic) way.
Renee M Valle
B.A., M.B.A., RYT-200
Certified Business Analyst
Founder, Local Bee