Traditional methods for measuring ROI need to be adjusted to accommodate the modern, digital world we live in. To truly determine if your campaigns are profitable, you need to go beyond the click.
Measuring Impressions at the Top of the Sales Funnel
In life, we are taught that you only have one chance at making a first impression. The same is true when guiding consumers down the sales funnel. Making a good first brand impression encourages prospects to begin that journey. This is where measurement starts.
Whether it is via video, display, digital ads, web, search or social media campaigns, measuring your first impression is an important task. A few metrics to keep in mind include:
- Impressions. When measuring how often a display ad is served, pay attention to the number of users who are served the ad in relation to your target audience.
- Frequency. Ads may become disruptive to users if over-served. Focus on the amount of times individual people are seeing your ads to ensure an ideal frequency.
- Video Impressions. Measure the number of times that users watch your entire 15 second ad spot on YouTube versus the number of times that the ad is bypassed. When did they stop watching? Did they make it to your call to action? You can also measure whether devices have any influence on the view time and number of impressions for each video ad.
Measuring Web Engagement In the Middle of the Sales Funnel
As prospects enter the middle of the sales funnel, they will often encounter your website. Each prospect will have a different journey based on the pages they view, the conversations they have with the interactive chat feature (if available) and the products or services they are interested in learning more about. In order to effectively measure the ROI of your web engagement efforts, track and analyze the following components:
- The number of times a prospect visits your website, the order of pages that are viewed and links that are clicked on.
- The time spent on each page. This engagement metric is very important to understanding how a prospect is interacting with your product, services and brand.
- Conversion rates.
– Did the prospect contact your company for additional information?
– Did the prospect download a white paper or case study?
– Did the prospect sign-up for newsletter or blog post updates?
– Did the prospect begin to follow your company’s social media?
Measuring Social Engagement in the Middle of the Sales Funnel
Understanding how your prospects interact with your brand via social media channels is an incredibly important aspect. A few key metrics that you should measure are:
- Reach. How far and wide is your content spreading? Reach can be used to measure how far your content is spreading on social media, as well as the number of accounts that view it. This important metric can also be used to better understand engagement metrics.
- Engagement. How many people are interacting with your social media content? Popular engagement metrics include the number of post reactions, shares and comments.
- Influence. Who is engaging with your content? It is important that you understand not only how many people are engaging with your content, but also who these people are. For example, are customers interacting with your content or are other industry partners (or even news outlets) influencing the conversation? By understanding the influencers, you can more readily redirect the conversation and capitalize on the content’s reach.
Measuring Leads in the Bottom of the Sales Funnel
By the time your prospects reach the bottom of the sales funnel they should be considered strong leads. However, in order to push your leads towards the final sale you will need to measure a few data points.
- Length of The Sales Cycle. You should measure the time it takes from the moment you first interact with your prospect to the time the sale is completed.
- Lead Conversion Rate. How many leads respond positively after communicating with you and/or reviewing the information that you sent them regarding products or services?
- Lead Response Rate. How quickly do you respond to leads who reach out for additional information?
Measuring the ROI of Sales
Converting prospects to customers is the final component of the sales funnel. At this stage, you have all of the data you need to accurately measure the ROI of each sale. To calculate the ROI you will need to know the following components:
- Time spent acquiring the customer.
- Resources spent acquiring the customer.
- Lifetime value of a customer.
The Bottom Line: Use the Right Metrics to Measure Success
The moral of the story is simple: Each component of the sales funnel has a corresponding list of modern metrics that will help you to determine the true ROI of your campaigns and sales process. By tracking, recording and analyzing impressions, web engagement, social engagement, leads and sales, you can more effectively tailor your efforts to generate a positive ROI.