Figuring Digital ROI Made Easy
Digital advertising has become a must-have for businesses looking to stay ahead of their competition. In today's fast-paced world, it is the most effective way to connect with your audience, create awareness and drive sales. However, tracking and measuring the impact of your digital campaigns can be daunting. This is where digital ROI comes in.
Did you know that you can figure out exactly how much revenue your digital campaign will return if you know just a few simple answers?
1. What’s your average retail sale?
2. What’s your average profit margin?
3. What’s your closing percentage?
4. What did you spend on your campaign?
Average Retail Sale
To determine the success of your digital campaigns, knowing your average retail sale is vital. It is the revenue earned from each customer transaction before any expenses are deducted and serves as the starting point to evaluate the sales and marketing campaigns' revenue generation value.
Average Profit Margin
Next, you need to know your average profit margin. This figure is the difference between your revenue and costs. Knowing your profit margin is crucial because it helps you measure your income relative to the money you spend on marketing and sales campaigns.
Your closing percentage is a critical metric that measures the number of sales from leads or prospects. It helps you determine the success of your campaigns in driving conversions and whether they are resonating with your audience.
Digital Campaign Cost
Finally, you need to know the cost of your digital campaigns. This will allow you to determine whether your investment in digital advertising is paying off.
With this basic information, we will be able to show you your digital ROI. It’s that simple. Ready to get started on this proven tactic?
Believe it or not even Google promises a $2 return on every $1 spent.