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Your marketing ROI, or your return on marketing investment (ROMI), gives you an overview on how your marketing strategy as a whole is paying off by honing in on the returns that came from marketing investments alone. You can calculate ROMI in a given period with this equation:
Sales Growth - Marketing Cost / Marketing Cost = ROMI
Of course, this equation assumes that all your sales growth in that given period resulted from your marketing efforts in the same period. It's not quite that simple, because old marketing strategies can pay off in the future, and some sales are made organically without the help of paid marketing.
For your ROMI to provide value and inform decisions, you need to have comparisons. Measure ROMI monthly to make the most of the metric. Looking at the rise and fall of ROMI over time will show the impact of your marketing strategies more clearly.
There are lots of marketing metrics tools out there, but marketing performance dashboards combine different measurement tools into one. They monitor your performance by pooling data from your website, social media accounts and more. This way, you don’t have to collect data from different places to track ROMI.
You can outsource your ROMI reporting and analytics to experts, or use a software that automates marketing performance reporting. Technology can deliver metrics and charts quickly so that you can utilize the information to your advantage sooner.