Digital Marketing Analytics Consulting Service: Strategic Audit & Advertising ROI.
Have you already invested significantly in marketing and advertising, all without paying close attention to your return on investment (ROI)?
If so, it’s essential to quantitatively analyze each of your investment products to date. To do this, it’s good practice to compare performance indicators with the cost of acquiring a new client, as well as the cost generated by each demand (cost per lead).
Following this analysis, we’ll generate a detailed report that outlines the performance of your current or past marketing campaigns. We’ll also propose several improvement strategies that will increase your ROI moving forward.
How do you measure the return on investment (ROI) of my paid advertisements (Pay-Per-Click)?
Historically, marketing agencies have relied on less precise metrics (such as the number of prints) to evaluate a campaign’s progress. Today, with the evolution of web marketing, many new performance indicators are now being used such as the clickthrough rate or the advertisement’s relevance to a given audience demographic.
The key to determining a campaign’s ROI lies in the methodology that’s employed to measure and evaluate results. For example, if the goal is to generate demand from potential clients (leads), the first indicators to take into consideration are the number of incoming forms and calls. By first identifying the source of this traffic, the appropriate campaign can then be deployed in the right place.
To recap, in order to calculate the performance indicators discussed above, it’s necessary to employ the proper tools and methods to measure performance. This can be done, for example, by configuring Google Analytics or by using software which tracks phone call rates.
What indicators do our experts use?
A key performance indicator (KPI) measures quantitative performance in the interest of making informed business decisions.
Performance indicators exist in every area of business management; here, of course, we are concerned with KPIs in the context of digital marketing.
COST PER LEAD (CPL)
The CPL, also known as the cost per prospect, is a performance indicator which illustrates the profitability of a campaign in relation to the cost of acquisition per lead. A typical scenario would involve comparing the CPL of a Google Ads campaign with the CPL of a social media campaign.
CUSTOMER ACQUISITION COST (CAC)
This indicator represents the average budget impact of acquiring a new client. It’s calculated by multiplying your cost per lead by the sales close rate. For example, if a campaign generates leads at an average cost of $20 (CPL), and you evaluate that one sale is completed per every three leads, your customer acquisition cost would be $60.
CUSTOMER LIFETIME VALUE (CLV)
The customer lifetime value allows you to calculate the net benefit of acquiring a client, considering the duration of that client relationship. This indicator allows you to determine, among other things, the customer acquisition cost (CAC) that needs to be maintained for a marketing campaign to remain profitable. For example: in the domain of cloud computing software (SAAS), where software is typically offered and billed as a recurring subscription, CLV is calculated by multiplying the duration of an average subscription by its price and then subtracting the variable cost linked to the subscription.
RETURN ON INVESTMENT (ROI)
Similar to CLV, calculating ROI affords you a holistic picture of the profitability of your marketing campaigns. This is an essential indicator for choosing between different project options and budgets because it helps you determine the best option in which to invest.
Our marketing analyses and digital audits
Our agency offers a performance reporting service for all web marketing strategies, whether they focus on search engines, different social media platforms, or take the form of digital signage. This report includes:
- Key performance indicators (KPIs)
- A summary and in-person meeting, with the aim of ensuring that our numbers reflect your growth objectives and are realistic for your business model.
