If you’re not tracking your return on investment (ROI) for your marketing efforts, you’re at a huge risk of wasting your invaluable (and most likely, limited) marketing budget. Tracking your marketing ROI not only helps you know what’s working and what’s not, but the higher your ROI, the easier and faster you can scale your practice. Never fear, we’re here to help you learn how to calculate your marketing ROI properly so you can maximize it with fervor!
Here’s the scoop on ROI:
ROI is a measurement of the value that an investment provides. When it comes to your marketing ROI then, it’s the amount of return on your marketing efforts relative to your marketing costs. It indicates the profitability of a marketing investment and can be used to determine whether or not you decide to move forward with that particular marketing campaign. Ultimately, ROI takes the guesswork out of making marketing decisions.
Still not sure why you should be tracking your ROI?
According to Dental Economic’s research, the sad fact is, “over 50% of dental practices don’t adequately monitor results from their marketing efforts, and 21.3% have no idea what works for them.” And since digital marketing is still in its early days for most chiropractors as well, it’s probably safe to assume chiro percentages aren’t much different.
But whether you’re a dentist, chiropractor, optometrist, or the proud owner of the Potato Parcel company, tracking your business analytics is vital, including your marketing metrics. Not only for making data-driven decisions for the success of your company, but also, monitoring your data is paramount to increasing your revenues and profits.
So, why is tracking your ROI important?
The higher your ROI, the easier and faster you’ll be able to scale your marketing, sales, and consequently, your profits.
No wonder then that ROI is considered one of the most important metrics (aka KPI or key performance indicator) in determining the success of a company’s marketing campaigns.
As we previously discussed, your ROI is the return you gain relative to the price of the initial investment. In order to track your ROI, you need to first find out your return (how many new patients your marketing has generated and the lifetime value of those new patients) and the price of the initial investment (your marketing dollars spent).
ROI is calculated with the following formula:
This is how you work it out for your practice:
In other words, if that was your marketing ROI, your practice would be bringing in 3.4 times the amount spent on digital marketing, or $3.40 for every $1 spent. Once you start tracking your marketing ROI, you can then work to maximize it to boost profitability! And we'd like to help you with that, too.
The key to maximizing your return on investment for your marketing efforts is tracking your return on investment for your marketing efforts. Since we’ve covered how to calculate your marketing ROI, you should have the most important factor to maximizing your returns in the bag. Your next move is to . . .
Stay tuned for next week’s blog for our 3 tips to maximize your marketing ROI with fervor!
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