According to Investopedia, return on investment (ROI) is a performance measure used to evaluate the efficiency of a number of different investments. Your ROI measures the amount of return on an investment related to that investment’s costs. It is part of your marketing analytics and serves as a benchmark for your marketing strategies.
With all of the different data and metrics that we can measure, what makes your ROI valuable to your overall marketing efforts? Measuring and analyzing your ROI can benefit your Brand and marketing strategies by increasing their effectiveness and building the foundation for successful future campaigns.
We have honed in on some of the benefits to help you determine why measuring and analyzing your ROI can help set you apart from your competitors. These benefits include:
- Improving marketing strategies: Your ROI allows you to determine which areas of your marketing strategies are performing well and which ones you need to improve or cut from your strategy completely. Measure and analyze your ROI to determine if each area is generating a return or if you are losing money on that specific investment. If so, you can work with your team to improve the channel to benefit your overall marketing strategy, or you can look at the data and cut the channels that are not beneficial to your overall marketing goal.
- Building an efficient budget: Measuring and analyzing your ROI allows you to build and sustain an efficient budget. Your ROI and other forms of marketing analytics give a more focused and targeted look at your marketing efforts. This allows you to stay within budget and helps plan and build your next budget strategy. You can also determine which areas of your budget need to be increased or decreased based on their specific ROI measurements.
- Gaining competitive advantage: Competitive advantage is the advantage gained over competitors by offering customers greater value. When you measure your ROI and use it to your organization’s benefit, you can determine your competitive advantage and strengthen it to improve your Brand. By using this data, you can surpass your competitors marketing initiatives and gain a greater competitive advantage.
- Setting realistic and attainable goals: Once you have measured and analyzed your ROI and improved your current marketing strategies, you can begin planning for the next quarter. Look at your marketing analytics and see how you can improve your Brand. Set realistic and attainable goals based on your data to help improve your overall marketing strategy and continue growing your Brand.
For more information on the benefits of measuring and analyzing your return on investment, download our eBooks, Increasing Your Inbound ROI, 3 Metrics That Matter: Landing Pages, SEO and Blogging and Better ROI Using Inbound Marketing Analytics: Email, Lead Generation and Nurturing. We discuss how your data can improve your marketing channels and produce the results your Brand deserves.
Are you using your data to your Brand’s advantage? Let's touch base and I will put the Hult Team's experience to work for you. We can connect at 309-673-8191 or firstname.lastname@example.org, and together, we can create a better focus on your Brand.