Top 7 Digital Marketing ROI Metrics You Need To Know in 2022

How much is your digital marketing plan going to create revenue for you?

Every digital marketing plan should track return on investment. ROI is a measure of how much revenue a company makes after all the expenses, and provides clarity on worthiness of your investments. Positive ROI confirms the company is on the right track.Negative ROI confirms that you need to reevaluate your marketing strategies, that includes assessing the ROI of individual digital marketing campaigns. Which digital marketing metrics should be used and how these can be assessed in terms of return?  

Techsaga, with 12+ years of expertise and knowledge is a Digital Marketing Company, helps you transform your business that delivers a measurable amount of an investment, through business-centered digital marketing solutions.

In this post, we’ll discuss some vital digital marketing ROI metrics and explain how to use them to assess your return. To help you gain valuable insights into your marketing campaigns, we provide a suite of advanced marketing tools.

To know more, keep reading the blog!

How to calculate ROI?

The basic ROI formula includes subtracting the money you spent from your return from your earned money. Then, dividing that result by your investment, followed by multiplication of 100, will give conversion of ROI to a percentage. Calculating marketing ROI is not simpler, rather tricky as it involves  numerous campaigns over the long and short term that may contribute to one sale.

Calculating ROI over the long term

If you’re calculating your digital marketing ROI over a long term, adding marketing expenses and revenue.

Calculating ROI over the short term

Specifically, if the ROI of a specific campaign needs to be calculated through different digital marketing metrics and key performance indicators (KPIs) to determine its value. 

Few useful digital marketing KPIs are:

• Website visitors
• Conversion rate
• Cost per lead
• Customer lifetime value
• Brand awareness

Lead generated in a campaign has its own conversion time. Lead may enter your marketing funnel and can get converted after several years down the line, depending on various campaigns and types of content. 

For example, prospects can click your ad, signing up for your email list.

Few weeks or months later, clicking on the link provided in the email will land them on your website blog. From that landing page,further they may take interest in free trial. Finally, after the trial phase ends, they may make a purchase.

So, the lesson learned is immediate conversion/sale is not expected, and it's still valuable.  Above example shows that you might consider someone clicking an ad followed by registering with an email and signing up can be considered a successful conversion. Your conversion rate for your email list signup can be one of your KPIs metrics for your specific digital campaign.

Calculating digital Return On Investment over the long term can work, if your business has a long buyer’s journey. However, calculating ROI for specific digital campaigns helps you to track or  meet your goals.

Tracking the Digital marketing ROI metrics, helps you improve your campaign effectiveness and accuracy. 

Here we discussed 7 most useful marketing success KPI or metrics for calculating ROI.

1. Average sale price

Average sale price is a relatively simple metric, but offers accurate numbers while calculating your digital ROI. Your average sale price is the average gross revenue for a sale. Add gross sales revenue for a specific campaign run for a specific time and divide it by the total sales.

Average calculation allows you to know the amount for differences in price due to sales, discounts, and product variation.

2. Customer lifetime value

Customer lifetime value (CLV) measures customer;s worth for your business in their journey as a customer. To calculate CLV, average revenue from a customer in a year multiplied with the average number of years your customers stay with your company.

Then, subtracting the cost of retaining that customer from that final number.

3. Cost per lead

Cost per lead (CPL),also referred to as cost per conversion, is typically used for paid traffic. CPL is the cost incurred to the company to acquire a lead or a prospect — a user who expresses interest in your products, services, or company and may become a customer. To calculate this, divide the number of leads acquired in a defined period of time by the ad spent over the same period.

4. Lead close rate

Your lead close rate is the percentage of your leads which make a purchase. To determine your lead close rate, divide the total number of leads by the number of closed leads, multiplying with 100 to get the percentage value of Lead close rate..

5. Cost per acquisition

Your cost per acquisition time spent on ads to gain a new customer. Calculating CPA digital marketing metric, is to divide your digital marketing costs for a campaign over  a period of time by the number of conversions earned during that period or campaign.

If your cost per acquisition is lower than your average revenue from a sale, Your ROI is positive.

6. Cost per click

Your cost per click (CPC) is the amount you spent on single clicks by the user on your pay-per-click ad. To determine metrics of CPC, calculate total cost of your clicks over a given period dividing by the number of cost per click (CPC) . CPC calculator helps you to calculate CPC in a quick and effective way. If a company is using Google Ads,Google Analytics can help you get the CPC data,  alongside other useful information about your ad campaigns.

7. Conversion rate

Your conversion rate is the percentage of visitors that convert, and make a purchase, and sign up for an email list.  This metric is similar to lead close rate, but the key difference here is that one measures lead close rate over a long period, contrary to that conversion rate is typically used for specific campaigns. Your conversion rate narrates the importance and relevance of your landing pages. More conversions means positive ROI for your business.

Techsaga:Delivering Clients for more than 10 years

Through weekly communications, monthly reporting and strategy reviews we make sure every digital campaign is focused totally on delivering results aided by client-centric approach.

5 Tips To Consider To Save Time During The Software Development Life Cycle Process

It has been found that 85% of software projects run according to the schedule and the process of development of software solutions becomes difficult when things do not go according to the proper planning and time. Therefore, it becomes imperative for the software projects to be delivered within the scheduled time. If you are looking for a Mobile Apps Development Company,  you can surely contact the platform of  Techsaga and this will help you solve all the problems related to software and mobile apps development. Mobile apps development company, Techsaga corporations enables connectivity of customers and business owners through digital medium and helps them improve business strategies and techniques to achieve targeted goals. 

As far as five tips to save time during the software development lifecycle process are concerned, they have been mentioned as follows:

Understand the requirements of the software before beginning its lifecycle

If there is a particular requirement, it has to be dealt with proper guidance such as designing and coding there are some important questions that need to be asked to establish the requirements and these questions are as follows:

What is going to be the purpose and objective of the software or the project?

When is the requirement of the software? Its requirement has to be as specific as possible and it can be either after a year or two months or it can be very soon.

What kind of features and functionality does the particular software require to have for its further processes? It is very important to start with the most important feature and a new feature must be included so that users can understand and use them.

How will it be possible for you to know whether the software was successful or not?

These questions can surely create a clear road map for the project and communicating the road map with the team members will be an additional benefit to making the software successful.

Usage of software automation tools will be great

As far as software development projects are concerned, they can consist of two or three developers but when the project is big, there can be a requirement for a large number of individuals to work on that particular project. Once the developers finish their task of the project, they move on to the second project. When it comes to the transition among the team members, automation tools play a very important role. These tools also complete the repetitive tasks which may not require complete expertise or creativity by the team members.

Founded in 2012, Techsaga is a leading Software development company, that has a creative team of professionals who can comprehend the needs of the client's business with key business insights to deliver results. 

Saying “no” to necessary features will be great in the software development lifecycle

The brand can ask for various features to be added to the software but do the users need them? This question must arise because it is, after all, the question related to the requirement of the users. If the users don’t need the feature, it may not be necessary and it will be a waste of time for any company to add unnecessary features. The project needs to begin with a requirement after the full analysis of what the users want. Without having a complete analysis, it will be very difficult for you to understand the features that the users want.

Continuous test of software functionality is advantageous

For any software to face any problem is very common and because of this, testing software functionality throughout the software development lifecycle continuously is going to be great. This can ensure whether the software is working properly or not. It will also reduce the time which is spent on fixing the bugs of the software. This particular continuous test will also ensure that the problem will not be able to delay the project related to the software.

Communication becomes the most important key in software development projects

A team with great communication and collaboration certainly becomes successful when it works on any project related to software development and in addition to this help, automation tools are going to be great to help the team.

It is also important for team members to understand that the communication is not just meant to begin a particular project and end it by just informing about it but it is about understanding the project and working on it in such a way that the quality of the project can be taken care of in a great way.

It is important for software development companies and software development project brands to nurture great collaboration and communication among the team members to work on a particular project sincerely.

 Team meetings among the members can considerably improve the performance of the project but only if the team meetings are done in the right way. It also happens that team meetings can also be a waste of time if they are not done with complete sincerity. There are various brands present online that know how important it is to understand the importance of communication among the team members to make a particular project related to software development successful.

Conclusion

All the five tips mentioned above are great to save time when the work on any project related to software development takes place. If you want to have a Mobile Apps Development Company,  you can contact Techsaga which will help you in this process. If you want to have the details, you can surely visit the website of the platform of Techsaga.