When you talk about digital marketing, it often put a thought like “viral content”. Though these industries focus on the truth that these elements of digital marketing don’t tell the whole story.

If you want to get a better understanding of different parts of your digital marketing campaign on your business. You need to measure one thing which is a digital marketing ROI.

We’ll discuss these actionable tips that you can use to improve your return on investment:

• If you get a positive return on investment, it means you are getting more money than your expenses.
• Digital Marketing ROI depends on unique goals.
• You need to know the metrics which are useful to measure ROI at different marketing channels.

What is Digital Marketing ROI?

Digital Marketing ROI is used to measure the profit or loss you get while generating digital marketing campaigns. It is based on the amount of money you invest. In other words, this measurement tells you how to get your money back to spend more money.

Read Also: Simple Steps To Improve Your Business ROI

If you don’t measure the ROI of your campaigns, you don’t get to know about maintaining your budget wisely. Here you can work by getting knowledge that campaigns to better understand where you should be.

How to Measure Digital Marketing ROI

It depends on your digital marketing ROI and how much money it brings with different campaigns. How to measure digital marketing ROI will depend on what your unique goals are.

There is so much data that is available on Google Analytics. We will discuss this most common list of digital marketing metrics which can be used to help you measure ROI:

• Conversion Rate

Conversion rate is one of the popular metrics which are used to track the return on your investment. If your goal of marketing is to convert these metrics you can fulfill your goal. If you talk about conversion rate there are a couple of things on which you can look. One of these is to check the conversion rates by its channel. While you get awareness about your traffic.

• Cost per Lead

If digital marketing aims to collect new leads for your sales team. You will need how much you are paying for each new lead. For calculating the cost per lead, divide the total attributes by that campaign.

• Cost Per Acquisition

Your cost per acquisition tells you how much it costs on average to achieve a new customer. Knowing, how much it costs to acquire a new sale helps you to understand better. This gives you a suggestion that you need to visit your marketing campaigns to find low costs per acquisition.

• Lifetime Value of Customer

Customer lifetime value is an essential way to measure your digital marketing ROI. This metric gives you the average consumer will spend in their life. When you look at the long-term profit as an investor, you can stand to gain from a customer.

Read Also: Hyper-Personalization In Digital Marketing: The Key To Engaging Customers

It deals with the ability to see beyond their first purchase which gives you a more accurate chance to look at ROI.

How to Improve Your Digital Marketing ROI?

When you start to measure your digital marketing ROI, you can search for more improvements in it. Here are a few ways through which your ability to measure ROI can boost your company’s bottom line.

• If your goals are unclear, then there’s a good chance that you might not be using the right metrics to track your ROI. This step will help you to measure and improve your digital marketing return on every investment.
• Once you have clearly defined your goals and objectives in place, you need to make sure that you’re choosing KPIs to align with these goals. Using these KPIs helps you to track your progress, and you’ll be able to see how close you are getting to achieving your goals.
• When you come to know which element of your campaign performs best, you can then make strategic changes to both current and future marketing campaigns. 
• If you want to improve ROI, you can adjust your campaigns which are based on what you find. Perform new trends or tests based on what you find to get new ways it helps you to make your campaigns better than before.

Final Thoughts About Digital Marketing ROI

The only way to improve your digital marketing campaigns is to know where you stand with your current campaigns and their performance.  This type of measurement helps you to tie campaigns’ success with the overall business bottom line.

It is an important thing to remember that you need to start with this specific goal before you are going to measure digital marketing ROI. No matter which channel you are using, the key to improvement is ongoing measurement.