If you don’t know where you’re going, any road will take you there.
Do you know what contribution your digital marketing is making to your business’s success? How about what annual revenue increase you would expect to see from every 100 people who sign up to your email newsletter?
A common misconception with digital marketing is that the performance of your campaign can’t be related back directly to business performance metrics. In fact digital provides the perfect medium to measure performance – and we’re not talking about reach and engagement.
Let’s look at the email marketing sign up question. If you establish that when you send out your monthly promotional email to the 10,000 subscribers on your email database, it drives an average of $4,000 in sales revenue. You can then work that back to calculate that each subscriber is worth $4.80 in revenue to your business annually. Depending on your business’s margins and any other relevant factors (eg. customer retention, lifecycle etc.) you can then calculate an acceptable CPA (cost per acquisition) for each new newsletter signup.
Whilst this is a highly simplified example it does illustrate the concept of goal setting in digital marketing, which is based on modelling out the value of every marketing activity’s endpoint.
By working through each element of your marketing campaign in this way you are able to establish target CPA’s for each activity. This enables you to instantly identify which marketing activities are delivering positive ROI, and which one’s aren’t.
Our goal setting workshops facilitate this process – in essence we bring the digital knowledge and you bring the understanding of your business’s finances and operation.