3 Tips for Tracking Marketing ROI
What do you get from your marketing campaigns? It could be a sense of popularity and a feeling that the phones are ringing and the orders are coming in more frequently. However, a sense that your brand is doing well doesn't tell you much of a story of success. What you need are the numbers, but how do you track marketing ROI? A text message marketing campaign can help.
Why Check Your ROI?
ROI or Return on Investment is a major part of your marketing campaign. It's the follow up to all of the visioning, writing, and focused effort you've put into the campaign. With an understanding of your ROI, you can make better decisions about your future marketing directions. Understanding your ROI isn't an aspiration: it's a necessity. According to Track Maven, "every marketer needs to be able to prove their return on marketing investment and tie their efforts to revenue and other business outcomes."
1. Check Your Leading Metrics
Some metrics are relatively easy to track. For example, if you send out a text as part of an SMS marketing campaign, you should be able to get a report on:
- Texts sent
- Messages received
- Contact counts
- Opt-ins to campaigns
With this information, you can track your changes in engagement and use them to analyze and refine your campaigns.
No matter what kind of marketing you're doing, you should be able to track:
- Page impressions
- Different interactions, including texts, emails, and phone conversations
Check for a correlation between your campaign and these types of metrics by tracking current data for these metrics. Compare your current data with past data to see if you can track down the reasons for the change.
2. Understand Your Impact With Test and Control Groups
How do you know if a text marketing campaign worked if it's just a busy time of the year? According to Marketo, "a great way to measure the true impact of a particular marketing program is to test the effectiveness of that initiative against a well-formed control group by comparing the two groups’ results." Text marketing is especially helpful in this regard. You can segment your customers into different marketing lists and send out a message to one and not the other, or you can send out different messages to see how well each one works. That way, you can get a sense of the ROI of a specific marketing campaign before you leap in.
3. Get Insight Into Customer Lifetime Value
While you want to sell those pizzas right now, understanding customer lifetime value is also important when you're investing in a marketing campaign. CLV is "an often-overlooked metric that can accurately predict how much your customers are really worth," according to Shopify. Your customer is worth so much more than a single sale, and if you treat them as a one time sale, that could be all you get. Encourage your customers to sign up for a text marketing list so you can stay connected, and increase their engagement and value to your business.
Collect information about your customers to understand how valuable they could be to your business over time. To do this, you'll need to gather customer data about the recency of each purchase, frequency of purchases, and the money that a customer spends in each time frame. If your text marketing campaign brings in frequent or high spenders, it has a higher ROI.
At EZ Texting, we're here to make your text marketing campaigns simpler. How can you improve your marketing and understand its effects? Learn more at EZ Texting when you sign up for free today.