How to Measure ROI Analytics

Any business owner knows that calculating a return on investment, or ROI, is essential in understanding how to best use available funds to support long-term profitable growth. ROI data is a great way to ensure your investments are working for you rather than draining funds without enhancing your business.

A good ROI can look different depending upon benchmarks you have set, the industry you operate in, and other strategies you use while collecting data. While defining an ideal ROI is subjective, the formula for any ROI is simple. It is the net profit divided by the total cost of the investment. This simple formula can give you a good idea of whether you are purchasing the right tools to get the job done effectively.

While the formula for calculating ROI is simple, getting accurate data in the digital marketing world can be much more complex. Digital marketing analytics platforms can help you identify patterns, relationships, and measure outcomes. These tools can help you measure ROI analytics to make informed business decisions. Some of the top digital marketing tools for ROI analytics include:

1. Google Analytics: This free tool can easily track link clicks and activity throughout your website to determine how traffic is directed to your site and how effective other digital marketing tools attract new customers. Google Analytics also integrates easily with other Google tools and can monitor social media campaigns for more comprehensive data.
2. Agorapulse: If you are looking for social media-based ROI data, Agorapulse can automatically calculate your page’s organic Facebook activity return. The ROI formula is a bit different from this platform, as it looks at organic activity rather than paid campaigns, but it is very useful in some instances.
3. Whatagraph: Whatagraph is good with cross-channel marketing campaigns, and with a graphic-intense dashboard, it can provide easy-to-understand information and data for your digital marketing efforts.
4. Heap: Heap monitors ROI from all marketing channels to help you determine those with the greatest value. This platform makes it easy to identify successful funnels and barriers for your site traffic. It also allows you to segment users for detailed analyses that can help you determine which groups drive the highest ROI.
5. Cyfe: Cyfe can monitor ROI and other metrics from digital marketing channels, including social media, websites, and other marketing outlets. This platform has a customized dashboard that makes it easy to interpret data related to ROI.

Determining your ROI for digital marketing efforts ensures that you can continue refining your marketing efforts by focusing on those that work. ROI tracking also provides additional business benefits, such as:

• Quantifying Success: No digital marketing strategy can be considered successful without the metrics to back it up. The ROI calculations can tell you whether certain efforts are paying off or draining your profits. And once you have a baseline measurement, it is easy to set goals for future endeavors to ensure you focus on sustained and continued growth.
• Focusing Efforts: With reliable data, the ROI calculation lets you break down data into small subgroups to identify which channels are the most successful at increasing profits. And once you know this, you can focus your efforts on those channels while ditching digital marketing strategies that aren’t working. In the end, this process can help you design more effective digital marketing campaigns and continue to boost your ROI and profitability.
• Saving Money: Calculating ROI lets you know what is working and what isn’t. You can often get better results with less investment by concentrating on proven strategies and ending those that don’t work when you know what is working. By ditching those that aren’t performing, you may be able to save some serious money over time.
• Planning and Budgeting: The ROI calculation can inform your budget-making process and aid in planning the future of your business. With this data, it becomes much easier to make informed decisions about how to allocate funds dedicated to your digital marketing strategy.

Analytics can help business owners make faster and better decisions. And metrics such as ROI are critical in building and growing a successful company. While determining the ROI for all digital marketing strategies may seem overwhelming, multiple tech tools can simplify this process and condense it to easy-to-understand data. The data can then be used to develop key business insights, strategic plans, and budgets. It’s simply a better way to operate your business, especially in a competitive environment. For more information about ROI analytics for digital marketing, contact the experts at eGlobal Web Solutions today.

eGlobal Web Solutions specializes in marketing your business via the digital marketplace. We use search engine optimization, social and review promotion, and Email marketing for all types of businesses, from local to global. We utilize various digital marketing techniques to increase your internet presence, optimize your traffic and generate new business.