Taking the Guesswork out of ROI


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Presentation delivered at LISTEX 2013 (www.listex.co.uk) - focussing on how to make sure you know your ROI and maximise the efficiency of your marketing budget

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Taking the Guesswork out of ROI

  1. 1. Digital, Data and Destinations Taking the guesswork out of ROI
  2. 2. ROI: Return on Investment
  3. 3. Data: You’ve got it, so use it…
  4. 4. How much is each sale worth?
  5. 5. How many leads do you need to make a sale?
  6. 6. So, what’s the value of each enquiry? Average Revenue per transaction £4000 Conversion rate (1 in 20) 5% Enquiry Value £200
  7. 7. But phone calls are worth more… Average Revenue per transaction £4000 Phone Conversion rate (1 in 10) 10% Phone Enquiry Value £400
  8. 8. Attribution: Where do enquiries come from?
  9. 9. Google Analytics: Setting up goals - Click on the ‘Admin’ button in the top right - Click on ‘Goals’ in the right hand column - Click ‘Create Goal’
  10. 10. What should your goal be?
  11. 11. Goals: Destination URL
  12. 12. Goals: Time on Site
  13. 13. How to check your Goals - Click on ‘Conversions’ in the left hand menu - Click on ‘Goals’ and ‘Overview’
  14. 14. How are your Goals generated?
  15. 15. Greater detail available (if you have time…) - Compare metrics at Adgroup level and at Keyword level - Adjust your PPC bidding accordingly
  16. 16. Organic and Referrer data - Review keywords for organic traffic. Be mindful of ‘Not Provided’ limitations - Run ROI calculations for paid referrals. Be mindful of possible branding benefits.
  17. 17. So, what is the ROI? Enquiries Value/Enquiry Revenue Generated Cost of PPC ROI 73 £200 £14,600 £3,500 £4.17 i.e. Each £1 spent on PPC generated £4.17 revenue
  18. 18. That’s half of the picture…
  19. 19. How to measure phone enquiries
  20. 20. Call Tracking options - PPC Organic traffic Brochures Newsletters Print ads
  21. 21. Measure calls received
  22. 22. Measure call outcomes
  23. 23. Measure regional trends
  24. 24. See how calls are generated
  25. 25. Measure total calls from each source
  26. 26. Final ROI calculation Phone Enquiries Value/Enquiry Phone Revenue Generated Online Revenue Generated 21 £400 £8,400 £14,600 Total Revenue Generated Cost of PPC ROI £23,000 £3,500 £6.57 i.e. Each £1 spent on PPC generated £6.57 revenue
  27. 27. Caveats • Your ROI calculations will only be as good as you make them – it’s essential to know your conversion rates • Not all phone calls nor clicks are equal – invest the time in further analysis • There is no perfect system and data will always slip through the net e.g. not everyone who receives a brochure or views an ad will call • ROI isn’t everything – banner and print ads may deliver some branding benefits which lead to direct or organic traffic
  28. 28. Conclusion: ROI is out there and waiting • Digital data means you can calculate ROI from your online marketing • Call Analytics means you can view the complete impact of your marketing • Call Analytics also allows you to measure calls generated by offline activity • Effective ROI analysis means you can turn your marketing up to the max
  29. 29. Presented by Iain Martin Skipedia Travel Marketing iain@skipedia.co.uk www.skipedia.co.uk twitter.com/skipedia