Finally! A Way to Calculate Social Media ROI
BY Aaron Aders
Shares, likes, links and retweets are all great, but what's their impact on sales? Here's a new way to get the metrics you need to measure your online marketing efforts.
Shares, likes, links and retweets are all great, but when the budget cycle rolls around, these metrics just don't cut it. Digital marketers need to know the impact on sales that are driven by such metrics.
Unfortunately, in the past, attributing digital marketing channels to sales has been an elusive skill that many marketers simply don't have the tools or education to complete. Today, marketers will find that a much clearer view of the impact on sales from each digital marketing channel can be easily generated using a new practice known as multi-touch attribution. Empowered with information provided by multi-touch attribution, digital marketers can:
• Justify digital marketing spends
• Optimize digital channel budget allocation
• Calculate more accurate CPA (cost-per-acquisition) figures
• Set up new campaigns for success
From email marketing to social media, multi-touch attribution analyzes every marketing channel touch point in the customer journey from the initial brand discovery to the final conversion (purchase). Multi-touch tracking can provide powerful data, but the processing of this data through attribution modeling can provide even deeper insights into the value of each marketing channel.
A model is a compromise between simplicity and reality. It's too simple to only analyze the last touch point that drove the customer to conversion, also known as last-touch attribution. Conversely, it is far too complicated to analyze and attempt to predict every possible customer journey.
Considering these constraints, there are a few fundamental attribution models that can be used to easily determine the value driven from each digital marketing channel. Furthermore, each model has at its core a set of marketing goals that are taken into account when calculating individual channel value. Have a drip campaign to nurture users through a long sales cycle? There's a model for that. Perhaps your team is running a seasonal promotion with a quick-convert 5-day offer? There's a model for that. Or maybe your only goal is brand awareness, in which case--there's a model for that! You get the picture.
• An overview of the multi-touch attribution and the benefits of using fundamental single-touch and multi-touch models.
• A quick assessment questionnaire to provide insights into which model(s) are most relevant to the needs and goals of your digital marketing campaign.
• Our Multi-Touch Attribution Study, which analyzed 30 client domains and over 23 million unique online conversions with over 150 million touch points to give insights on when, where and how much value digital marketing channels provide throughout the customer journey.
• A step-by-step guide on how you can implement multi-touch tracking on your website using the free online tool Google Analytics as well as setting up a linear model analysis using Microsoft Excel.
The most informed marketing teams generate the best results. Download Slingshot SEO's Multi-touch Attribution eBook today to get the knowledge and tools you need to optimize your marketing spends and increase ROI.
Aaron Aders: Aaron is co-founder of DigitalRelevance™, a national leader in earned media and inbound marketing services. Building on more than a decade of Internet marketing experience, Aaron steers the strategic vision behind DigitalRelevance market research and collateral. @drelevance