ROI is an obvious core concern for marketers. When you show a report filled with clicks, impressions, sessions, and pageviews, a business owner may glance at the numbers but come back by saying, “OK, great numbers, but where’s the ROI?”
To ultimately prove the success of digital marketing efforts, you need to be able to tie results to real-world profits. Now, for an ecommerce company, showing ROI from the web is relatively easy, because you can directly correlate revenue from products sold with the website and the various sources leading users to purchase.
However, for a real estate company advertising to people interested in renting out apartments, proving ROI is a more difficult task.
For a lead generation client, measuring return beyond website traffic starts with proper conversion tracking. Set up Goals in Google Analytics and ad platforms to understand how many leads come from actions such as submitting contact forms. Next, if a significant number of leads come via phone calls, using a call tracking platform like CallRail or DialogTech, can correlate phone calls with sources like organic search or paid search.
Even if you know the average revenue you make per lead that comes into your business, you can approximate ROI by setting a value per lead. For instance, if you receive around $1,000 per lead and you get 20 leads, you can estimate a return of $20,000. Setting a Goal Value will allow you to measure this directly in Google Analytics.
However, for many lead generation clients, even a lead value is an approximation. Ultimately, you should work toward measuring actual return from leads that come in via the web. To set this up, you’ll need to track the original referrer for every form submission that comes through your site. This configuration means you can see that people came from a Google AdWords click or a Facebook link.
This tracking will vary depending on your website’s configuration; some systems may allow you to automatically track this, while others may require some custom development. Talk with your web developer if you need assistance setting this up. This article provides an overview of how to approach building in referrer tracking, along with sample code.
Once you’re able to track the original referrer by name for form submissions, compare this data to final sales records, bearing in mind that a sales process may take months to close. Note the people who actually bought after submitting a form, and include revenue figures if possible. Finally, tally the revenue by source to determine total revenue and average revenue per lead.