What is my Return On Investment, my ROI for our marketing? It is a question that I am often asked and the normal answer is – “It’s complicated.”
Is it really?
No, but it is not as straightforward as most people would like.
The reason that it seems complicated is because it depends on the purpose of specific types of marketing. Each type of marketing will give you a different type of ROI – and not all of it is easily identified by numbers.
Easy Types of Marketing to Identify ROI in Numbers
Some marketing types allow you to count exact numbers and are used for very specific purposes. This is why I always recommend to my clients that they have a diverse marketing strategy. Which one will work for you? Let’s dive in.
Direct Marketing
Direct Marketing is usually a flyer of some sort that is sent to a measurable amount of homes. You have the starting numbers – how many homes your flyer is sent to. Then you have your numbers that come back in the form of a phone call, email or website hit. You may even have a customer call and tell you that they found out about you from your flyer.
The numbers of how many you send out and how many leads you can track are clear here. There is also an unknown impact number – your awareness. We will talk more about that in a bit.
Email Marketing
Email is still king. This is where you can literally knock on someone’s digital door and gain access to their eyes. People still open emails and if your open rate is in the double digits, you are doing something right.
You can measure your ROI in how many opens you have and how many clicks on links are from your emails. The larger your list, the better your return.
Google Ads
These ads are designed for when people are specifically seeking what you are selling. I need a plumber near me. Perfect – make an ad for that. If you have a service or a specific item that people are searching for in the moment, then a Google ad is a strong part of your marketing strategy.
Google Ads give you the metrics of how many people see your ad and then how many people click on your ad. If you have something that people aren’t really seeking, but could be enticed to purchase when the moment arises, move on to Social Media Ads.
Social Media Ads
Social Media ads are ideal for products and services that are impulse purchases or maybe they don’t need right now, but when they do, they will remember they saw you.
The numbers are challenging to measure but can be recorded if you take them with a grain of salt.
The reason I say that is because way back when Apple added the increased privacy and no tracking measures on the iPhone, the numbers became harder to measure. 80% of people opted out of tracking, so maybe someone saw your ad, and maybe they didn’t. You are left with a guesstimate of how many actually saw your ad because most people don’t want you to know.
The numbers you can rely on, are the numbers of leads that you get on your ads and the traffic numbers to your lead generator and/or website/landing page.
When ROI is Your Awareness
What? How do you measure awareness?
Eric Qualman said it best when asked what is the ROI of Social Media (awareness marketing at its finest).
“The ROI of social media is that your business will still exist in 5 years.”
This is where the marketing and sales crews often butt heads. Marketing is a traffic driver, lead generator and awareness builder. It does NOT close business. That is where your sales messaging and sales team (or you) come into play.
HOWEVER, awareness is a VERY important aspect of marketing. If customers or clients are not aware that you exist, then how will you be able to sell to them? How will your company survive?
Top Types of Marketing for Awareness ROI
Social Media
Social media is the Queen of awareness marketing. You need her to spread the word about your business and show your potential clients and customers how you can solve their problems.
People need to be reminded that you exist and they need to see a post from a company 5 to 10 times before they may act on it. So yes, you need to post, you need to post where your clients are, and you need to post often and on multiple platforms.
(It can be a lot, so if you need help, we got you.)
Networking – In Person
Many people forget that their are still humans out there to talk to in person. Have you ever hung out with your neighbors for the hundredth time and thought, I don’t even know what this person does for a living. Every time you interact with a person is an opportunity to network.
Join a networking group or visit local networking events. I prefer groups that meet weekly because that gives me the opportunity to really build relationships and refer others, as well as seek new business. Become the person who has “got a guy.”
Networking – Online
This is can be a true driver of awareness and is often overlooked. I can just post online right? Wrong.
You need to get out and interact. Engage with your audience and those that you want to be part of your audience. Answer questions, seek out advice, look for others in your niche to chat with and build relationships. When you are away from your digital network, much like your in person network, they can work for you and spread the word about your business.
The Marketing Guarantee Fallacy
What is my guarantee?
What promises can you make me that this will work?
These are questions I am often asked by potential clients and clients that are already working with me and my agency. The answer is never one that they want to hear.
Because the answer is there isn’t an ROI guarantee.
What I CAN guarantee is that the system works…when you work the system.
That is what is key about marketing. If you implement a clear strategy with diverse marketing channels, then you will be able to measure your ROI and build your awareness at the same time.
What I can also guarantee, is that if you don’t put in the work, then you won’t get a return.
What questions do you have about ROI? What has been your experience with marketing and sales? Contact me on LinkedIn or hit me up on Bluesky – I would love to know.
Cheers my friends, you’ve got this.