Go take a look through marketing books and search for the word ‘revenue’. Unfortunately it seems the majority of the time, you’ll keep moving through a fruitless journey from one book to the next with no mention of revenue in sight. Of course many marketers these days are being asked by their executive management teams to account for revenue generation.
The age of digital transformation that we’re in now, has given marketers new insights into to analyzing exactly what contributes to revenue. For the sake of clarity and not over-promising, it is true that not everything in marketing can be neatly tied back to revenue via a calculation or formula. But there is a lot that you can calculate and there are a lot of correlations that can be made.
Let’s start with correlations, they’re fun!
At the dawn of the social media age, people asked marketers to calculate the ROI of social media. Many tried and somewhere around 99.9% failed. Perhaps that’s a bit of a tongue and cheek comment but in reality social media plays an influencing factor that’s tough to calculate. While we can say that a post had a click through rate of 1,000 and from that 1,000 there were 5 conversions (ouch) the calculation would not do social media justice. People observer, watch, comment, engage, complain, ask questions, read recommendations, and generally learn a lot about companies, their brands, and their people via social channels. All of these points factor into the value of social media, but how do you measure digital revenue beyond correlations?
Enter the digital marketing suite.
No matter what you call it, CMS, Content Management Systems, Customer Experience Manager, Digital Marketing, the software that is the foundation of your website has become an invaluable tool for measuring impact on revenue generation. The digital marketing and content management platforms available today make it possible to target, track and measure with a connected view of the customer journey across channels.
How can this help you measure revenue?
Present content at the right time to shorten the buying cycle and to improve conversions and sales and reduce cost per acquisition using personalization and behavioral profiling.
- Adapt Campaigns in real time to improve marketing spend using multi-variate testing and analytics.
- Improve effectiveness of campaigns by optimizing messages and delivery by using marketing automation tools that nurture relationships across channels including connecting the offline-journey.
- Develop a in-depth understanding of what leads to purchases by being able to gather more data about customers and zero in on interactions moved more people through the funnel using analytics and CRM integration.
- Identify and respond to trends such as increases in keyword searches or specific content being viewed with analytics that capture in-depth analytics and the capability to readily create new content and adapt campaigns.
- Maximize the value of customers by understanding what impacts the customer journey to eliminate unnecessary incentives using analytics that give a comprehensive view of across multiple channels.
Digital making platforms provide extensive opportunities to measure the effectiveness of all of your marketing without making correlations. From the simplest to the most complex campaigns, you can harvest data to calculate exactly what impacts digital marketing revenue.
Now Back to Correlations…they’re easier now too!
Not everything is easily tied back to formulas. Perhaps it could be, but getting bogged down in over-analysis may be something that isn’t the best use of time or resources. Correlations can still paint a picture about what impacts revenue. But by having access to much more granular data that lets you measure specific efforts and their impact on revenue generation – it’s easier to justify time on some more traditional correlation analysis to find what isn’t overtly obvious. Not everything is explicitly measureable. In combination with all the other specific ROMI measurements you have, correlations can add value and justifying your spend and also helping you to fine-tune your marketing efforts.
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