The advent of Internet and its gradual penetration into the corners of the world has led to a shrinking world. For the businesses, recognising the customer's choice and requirement are of utmost importance, but the marketers find themselves submerged in the overwhelming amount of marketing data available. It is bewildering to understand how marketing analytics relate to Return on Investment (ROI) with such varied and diversified visitors.
The ROI is an evaluation to measure the performance of the efficiency of an investment. It directly measures the return in relation to the investment cost.
Marketing Analytics is the process of controlling and analysing the metrics data in order to ascertain the ROI of marketing efforts that a business has put in.
Tips to increase ROI
The ROI is the key factor to assess how successful the marketing efforts have been. Marketing Analytics, in addition, is an essential tool based on which businesses can initiate, plan and execute their marketing campaigns and enhance their Y-O-Y returns.
Target optimum result by leveraging the right analytical platform: The most crucial step would be to select the apt data analytics platform that would help give a complete insight into the sales teams' efforts. It should give clarity on their performance, profitability and revenue contribution which will assist in informed decision-making and aid in targeting more lucrative opportunities.
On one hand, the sales leaders will benefit by getting complete an insight into the project goals and can work strategically towards it. On the other, it comes handy in identifying and redressing the issues on a priority basis. The right choice of data analytics platform enhances the operational efficiency as it enables the strategic use of the available data for business development and ensures improved marketing ROI.
Focus on improved well-planned and stragetic ROI: A perfect planning will certainly guarantee better results. It is mandatory to underline what to measure, when to measure and how to measure. First an outline should be proposed, gradually a detailed plan should be worked out. Side by side, it should be figured out as to how analytics can be installed to achieve the anticipated ROI.
Investigating what works is fine but knowing what works better will do the trick. Shun vanity metrics: The overwhelming data can distract us by misleading. Social media likes of Facebook, Twitter, and others may give an impression of popularity but they hardly help in generating real revenue. It is better to keep such data out of measurement.
A lot of time, money and effort goes into it, so the focus should be on targeting the right segment. The narrowing of the segment will ensure better ROI gains.
Increase sales: In this digital era, there is an abundance of information floating and is easily accessible to all. On one hand, the customers are empowered by this to make well-informed purchases, while on the other, the business houses can also strategise and exploit this to their great benefit. The only need is that the marketing team knows and learns how to translate this data into revenue.
Experiment and explore as much as you can: There should be no limitations while testing or measuring. Experimentation and exploration of new avenues are certain ways to accelerate your business as it will lead to fresh possibilities.
There is an adage: No pain; no gain. Nothing can be achieved by hanging on to traditional, tried and tested methods. The changing times ushers in the need to be innovative and think out-of-the-box to be the leaders. Continuous improvement and strategic planning are the need of the hour to improve ROI.
The writer is Kounal Gupta, CEO, Henry Harvin Education