Included in every session will be one or more Skill Set exercises to help you engage with the Big Ideas presented. While this is optional, don’t cheat yourself and move through the Roadmap without applying the concepts you’re learning! Challenge yourself to complete every Skill Set activity and see what changes in your business as a result. We promise good things will happen.
Knowing Your Marketing ROI
Do you track the ROI of your marketing channels? Tracking your marketing ROI is the only way to determine which marketing efforts are worth continuing, and how much to invest in which channel. As a baseline, your marketing efforts should return about 4x the amount of your investments. Consider the following criteria for determining which marketing channels offer you the highest ROI.
Channels
Make a list of the marketing channels you are investing in.
Examples:
- Website SEO
- Flyers/Hangers
- Signs
- Referral/Networking
- Email campaign
- Google
- Search Campaign
- Display Campaign
- Facebook ADs
- Instagram/other social media
- Coupons
- Other
Tracking
Set up very specific and measurable tracking processes that allow you to understand exactly what is happening through your marketing channels.
- Identify a tracking system you will be using, or use a CRM (customer relationship management) software
- Track each incoming lead through your sales process to determine where leads drop off
- Track leads that continue through your funnel and are converted to a sale
- Determine the percentage of conversions versus drops
ROI
The tracking phase of understanding your marketing ROI is the difficult part–determining your ROI is easy. Keep in mind that your marketing ROI is determined channel by channel! The point of learning your actual marketing ROI is separating out the successful marketing channels from the unsuccessful ones, so you can invest more in the successful ones.
- Calculate how much you spent on one marketing channel
- Calculate the total net profit from all converted leads in that channel
- Take your total net profit, divide it by the amount you spent, and multiply that final amount by 100. This is your ROI percentage on that marketing channel.
Keep in mind that a successful ROI for a marketing channel should be around 400%, or 4x the amount you invested in it. Invest more heavily in your most profitable channels!
