Taking the Guesswork out of ROI

Digital, Data and DestinationsTaking the guesswork out of ROI

ROI: Return on Investment

Data: You’ve got it, so use it…

How much is each sale worth?

How many leads do you need to make a sale?

So, what’s the value of each enquiry?

Average Revenue per transaction £4000

Conversion rate (1 in 20) 5%

Enquiry Value £200

But phone calls are worth more…

Average Revenue per transaction £4000

Phone Conversion rate (1 in 10) 10%

Phone Enquiry Value £400

Attribution: Where do enquiries come from?

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’

What should your goal be?

Goals: Destination URL

Goals: Time on Site

How to check your Goals

- Click on ‘Conversions’ in the left hand menu

- Click on ‘Goals’ and ‘Overview’

How are your Goals generated?

Greater detail available (if you have time…)- Compare metrics at Adgroup level and at Keyword level

- Adjust your PPC bidding accordingly

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.

So, what is the ROI?

Enquiries 73Value/Enquiry £200Revenue Generated £14,600Cost of PPC £3,500ROI £4.17

i.e. Each £1 spent on PPC generated £4.17 revenue

That’s half of the picture…

How to measure phone enquiries

Call Tracking options

- PPC- Organic traffic- Brochures - Newsletters- Print ads

Measure calls received

Measure call outcomes

Measure regional trends

See how calls are generated

Measure total calls from each source

Final ROI calculation

Phone Enquiries 21Value/Enquiry £400Phone Revenue Generated £8,400Online Revenue Generated £14,600

Total Revenue Generated £23,000Cost of PPC £3,500ROI £6.57

i.e. Each £1 spent on PPC generated £6.57 revenue

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

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

Presented by Iain MartinSkipedia Travel Marketing

iain@skipedia.co.ukwww.skipedia.co.uktwitter.com/skipedia