Figuring out your digital marketing ROI can benefit your organization by letting you know how effective your various types of spending are, and also informing decision making in the future. As part of the ROI calculation process, you need to figure out what your baseline sales would have been without the spending whose ROI you are trying to calculate. You also need to thoroughly understand what your own business goals, KPIs and tactics are. It?s also important to think about how you will obtain your data and guarantee its integrity.
Key Takeaways:
- To determine your ROI effectively you need to know at what sort of time increments you should be taking your measurements.
- To know ROI, you need to have a baseline that shows what sales were before the institution of any advertising efforts at all.
- You need to establish what the company goals are and have a metric that reliably shows how well you are doing at reaching those goals.
“It seems fairly obvious that the point of calculating ROI is to determine the effectiveness of marketing spend.”
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