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Getting Your ROI
Is It All Worthwhile?
Let’s be perfectly clear. There’s no point in you spending money on any content unless you can show that you are making a good investment. Anything else is a waste of time and cash, and not likely to help you grow your business. In short, you need to make sure that you are getting a good Return on Investment (ROI) before you instruct us to go ahead with any work.
How to Calculate Content Marketing ROI
You might want to express your return as a percentage of the money that you spend.
For example, if your goal is a direct increase in sales, then you can express the ROI in terms of the money that you raise, less the money you spend, divided by the spend amount. You can then define the result in percentage terms.
So, if you end up making £2,000 in direct sales traceable to specific content, and you paid us £500 to develop that content, you will get a 300% return on your investment.
Figuring out Your Metrics
Before you can make these calculations, however, you need to understand your metrics. You will need to set out some key performance indicators, and you can approach this in several different ways.
We previously mentioned direct marketing, where you can link a specific piece of content to a shopping cart, as prospects buy one of your products or services. In this situation, you can measure the conversion rate, but bear in mind that you will probably have several different steps in the buyer journey.
For example, your new customer may have entered your sales funnel by clicking on a Facebook ad, which took them to the content marketing (landing) page. Here, they learned more about your company, product, or service, which convinced them to take action. In this case, they clicked through to the shopping cart and made the purchase. So you will need to apportion some of the cost of the Facebook ad and the “cost per click” into that equation.
Working out Your KPIs
We can help you to determine what your key performance indicators should be. These will vary from campaign to campaign.
In another example, you may want to build awareness in your organisation without expecting an initial sale. You may want to build credibility, expertise, and trust in the first instance, so you create a new blog with regularly updated posts or articles. Here, you can use analytics software to see how long an individual visitor spends on each page.
You can see if they scrolled down, are likely to have read the article in question and if they clicked through to another page on your site during their visit.
If you decide to run a new social media campaign, you can gauge how many people “liked” the particular content or how many viewers were engaged.
Micro Conversion KPIs
Remember, revenue is not always the primary KPI. Typically, a new customer will take a relatively long journey before they actually purchase, and there will be many steps along the way. They’ll need to take positive, individual actions (or conversions) to move through your complete funnel and you need to be able to track the value of each piece of content along the way.
You may not be able to tell if a specific piece of content towards the beginning of the funnel was directly responsible for an eventual sale. However, you may already know that, on average, 1.5 % of people who initially subscribe to your email newsletter content will eventually become customers. Once you have determined the average lifetime value of a customer (let’s say £10,000), you can then deduce that the value of that email newsletter conversion was £150.
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You can also check your company’s performance in the search engine rankings. You should check each individual page, including articles or blog posts and see how they perform over time. As each page ranks higher, then it will gain more viewers, and some of these people will respond to the CTA on each page. You will be able to record each relevant click and determine its relative or final value, and as such, will know if that piece of content gives you a good ROI.
Dynamism
It can be tough to keep on top of changes as this is a very dynamic and ever-evolving situation. You should nevertheless set initial benchmarks, so you have figures to work with and can determine a fair target ROI before you begin a campaign.
Further Information
So, remember to set some key performance indicators before you begin and establish reasonable ROI benchmarks. It’s not always easy to work this out when it comes to individual steps along the buyer journey, but we would be delighted to help if you need any direction.