How does a digital marketing company measure ROI of a business?

1. How does a digital marketing company measure ROI of a business? Every company that has hired a digital marketing company for their business must measure their ROI. Measuring isn’t that easy to be done because every campaign is built on different purposes and different goals. Once you check by visiting the analytics page, you will understand how complicated it is. Don’t worry and don’t be scared. If you see the analytics page for the first time and then we are sure you would be scared and confused. That is when you need to understand how these metrics can be measured easily. You need to know this because you can’t leave your campaigns in the hands of the marketers without you knowing nothing. Let us see how a company measures its ROI. 1. Conversion rate: If your goal of the campaign is to convert the leads, this is the most important and popular metrics that are used to track the ROI over time. With the results projected, you can easily understand what is happening in the campaign, this includes, from where your audience is coming, which channel is generating more leads, and which device is working the best. With this metric, you can measure the ROI and then see if you can invest in the one which is producing more result. 2. Cost per lead: Businesses run for leads and leads are the reason you are earning profits. It is not enough if you are getting leads from the campaigns, you also need to know how much one lead costing you is. Knowing this will give you a picture of the ROI that you are earning from that campaign. You can calculate the lead cost by dividing the total spent money by the number of leads achieved. 3. Lead close rate: You might end up getting thousands of leads, that is who might have filled the form. But in those thousands of people, how many have got converted is what gives you

2. the idea of how much ROI you have earned. This information will also be easy for you to work on the new campaigns and which are giving the best output. 4. Cost per acquisition: It will tell you how much it costs on an average to acquire a customer. This will help you understand the new customer that you are acquiring and the ROI that you gain on it. If you are spending more on acquiring a customer than the profit that they bring to your business, then there is no point in investing so much on them. You need to change the marketing methods and the campaigns and find a better way to lower the cost. 5. Average order value: You might run the campaigns for many purposes and one campaign is that when the user places an order by clicking on buy on option on the campaign. This average order value (AOV) will measure the average cost that is spent on the customer when he places the order. You will be excited about the number of orders you are getting but if there is no ROI from the number of orders received. Even if you could increase the average value of at least one order, then it would result in an increase in revenue.