In asset management digital marketing, it is important to ensure that you are receiving a profit on your investments. ROI (Return on Investment) is a metric that calculates the return for each dollar your business spends on marketing. Calculating ROI is important because it allows a company to identify which strategies are working and which ones are not. Based on this data, companies can cease efforts on assets that are not performing well, while reallocating the funds towards more profitable assets. A company can also modify and develop new strategies based on the information received from ROI.
How to Maximize ROI:
ROI can be calculated per asset or for the entire marketing structure as a whole. When calculating the ROI of one particular asset, ensure that the objective of your marketing campaign is clearly defined. Your latest marketing asset’s main objective might be to boost sales on a certain product. With that clear goal in mind, you will be able to calculate how much return you are getting on each dollar you invested once the campaign ends. The example above is known as a key performance indicator (KPI).
There are a number of KPIs you can employ to ensure that you are maximizing your marketing investments. Make sure to find the one that most strongly aligns with the goal of the marketing campaign. Set benchmarks to accurately measure the success of your campaigns.
There are usually two areas to assess:
1) Industry averages
2) Historical performance of similar past assets.
Once your ROI is up and running, make sure to perform monthly assessments and strategy meetings to continue optimizing ROI data in the future. When calculating the ROI of your company’s entire marketing performance as a whole, use other metrics to gain a deeper insight into which assets are performing and which ones are not.
Other Important Metrics:
- Customer Acquisition Cost
Customer Acquisition Cost (CAC) calculates the cost necessary to persuade one customer to make a transaction of any kind.Companies utilize this metric to measure whether the cost of attracting new customers is worth the investment made. Businesses find CAC a useful tool in measuring the success of marketing activities.
- Conversion Rate
Conversion rate measures the percentage of customers that made a transaction due to the influence of a marketing campaign. If a campaign reached 50 people and out of these 50 people, 10 people made a transaction, then the campaign’s conversion rate can be calculated as 20%. Conversion rate is an extremely useful metric for businesses wishing to evaluate the performance of their marketing activities.
- Engagement Metrics
Engagement metrics are valuable in letting businesses know about actions taken, time spent on a website or social page and track the amount of traffic on a website/app/advertisement. Engagement as a percentage allows a company to know how many people out of 100 are engaging with an advertisement at all. Engagement metrics inform a company as to whether its digital marketing content is engaging, relevant or effective. Engagement metrics are of various kinds and each kind can provide a company some level of insight.
CONCLUSION:
In Asset Management Digital Marketing, ROI can be used to calculate the performance of one particular asset, or the entire marketing budget performance as a whole. In both instances, the principle of ROI is the same. ROI presents the amount being returned for each dollar being invested into an asset/entire marketing budget. Keep clear goals and key performance indicators when utilizing ROI. Using other metrics such as customer acquisition cost and conversion, businesses can gain a better perspective.
ROI is useful to companies because it allows companies to access which marketing strategies are working and which ones are not. This information permits for a strategy to be developed or re-modeled as required while allowing for better allocation of funds.