How to evaluate the ROI of a marketing plan?
Posted: Mon Jan 20, 2025 10:14 am
Raise your hand if you've ever been asked about the return that each action you take brings to your company? When we talk about the marketing world , where you often only work on branding, without necessarily having the immediate obligation to convert leads or sales, the pressure is even more intense, right?
But the truth is that analyzing the return on investment is a valuable practice for directing management and planning strategies , correcting possible routes and making assertive decisions for the business.
This is a methodology used in both offline and online marketing. For example, it is common to find physical stores that invest in distributing flyers about their services, offering the collection of gifts or discounts taiwan whatsapp data upon presentation of the flyer on site. When customers go to the location, their presence is usually counted using technological or manual tools, and at the end of the campaign, a calculation is made of how many flyers were handed out, how many visitors there were and, of these, how many purchased at the establishment (conversion rate).
If you don't measure the return on your actions, you won't be able to adapt your planning . As we said in the post What you need to know about the new concept of marketing planning , static plans no longer work.
For example, if your store has a daily flow of 1,000 people and the number drops to 800, you need to take action and identify what is happening. When we are talking about one or two operations, it is easy to carry out manual control. However, when we are talking about a franchise network with more than 100 establishments, technology becomes an important ally in enabling precise and efficient management.
To calculate the business's ROI, it is possible to apply several measures, which vary according to the company's strategy. A bank that wants to sell life insurance, for example, can calculate the cost per contact and analyze how many people contacted signed up for the service. This way, it can measure how many contacts need to be made per day to reach the established goal (cost per contact).
If your marketing strategy included an ad being placed during a break in the Jornal Nacional, you should be able to measure how many people were impacted within that time frame and then calculate how much you spent on the promotion versus how many customers you acquired. This way, you can calculate the profit per customer acquired.
In relation to digital marketing strategies, the main metrics used to calculate ROI are the cost per click or per day (both in Google Adwords and on social media) and the cross-referencing with the return on sales of the lead.
However, there is no magic formula required to determine the ideal return on investment. Measuring the result depends directly on each business profile, target audience, product and region. The most important thing is to calculate the return on each action invested, as this will be the driving force behind defining the next management steps.
But the truth is that analyzing the return on investment is a valuable practice for directing management and planning strategies , correcting possible routes and making assertive decisions for the business.
This is a methodology used in both offline and online marketing. For example, it is common to find physical stores that invest in distributing flyers about their services, offering the collection of gifts or discounts taiwan whatsapp data upon presentation of the flyer on site. When customers go to the location, their presence is usually counted using technological or manual tools, and at the end of the campaign, a calculation is made of how many flyers were handed out, how many visitors there were and, of these, how many purchased at the establishment (conversion rate).
If you don't measure the return on your actions, you won't be able to adapt your planning . As we said in the post What you need to know about the new concept of marketing planning , static plans no longer work.
For example, if your store has a daily flow of 1,000 people and the number drops to 800, you need to take action and identify what is happening. When we are talking about one or two operations, it is easy to carry out manual control. However, when we are talking about a franchise network with more than 100 establishments, technology becomes an important ally in enabling precise and efficient management.
To calculate the business's ROI, it is possible to apply several measures, which vary according to the company's strategy. A bank that wants to sell life insurance, for example, can calculate the cost per contact and analyze how many people contacted signed up for the service. This way, it can measure how many contacts need to be made per day to reach the established goal (cost per contact).
If your marketing strategy included an ad being placed during a break in the Jornal Nacional, you should be able to measure how many people were impacted within that time frame and then calculate how much you spent on the promotion versus how many customers you acquired. This way, you can calculate the profit per customer acquired.
In relation to digital marketing strategies, the main metrics used to calculate ROI are the cost per click or per day (both in Google Adwords and on social media) and the cross-referencing with the return on sales of the lead.
However, there is no magic formula required to determine the ideal return on investment. Measuring the result depends directly on each business profile, target audience, product and region. The most important thing is to calculate the return on each action invested, as this will be the driving force behind defining the next management steps.