In this digital age, marketing ROI for financial institutions has been transformed. In the past, spikes in sales were usually difficult to track and could leave financial analysts scratching their heads as they tried to understand the causation. However, now companies can access specific insights on their marketing campaigns through tracking and analytics. Because data and customer profile information flows through financial institutions daily, organizations have access to analytic data like never before.
Smart financial institutions will utilize the analytics and data they receive to truly track the ROI of a marketing campaign from start to finish. In order to do this, you must follow the steps outlined below to assure you have the correct information, benchmarks and formulas to truly prove your ROI.
Define the Campaign
In order to set up truthful metrics for proving marketing ROI, you need to have a clear and relevant marketing strategy in place. For instance, what is your end goal? Are you promoting a mortgage loan product and need to track how many mortgages are closed? Or are you trying to get customers to download a new mobile app and need to track downloads? Regardless of the objectives or the ways those objectives are executed; the point is that the goal must be clearly defined in order to measure it.
Track and Monitor the Campaign
Marketing campaigns are high touch and take a lot of work; the job is really never done. Once you have planned and begun to execute a great marketing campaign and have set up analytics to measure ROI, there is still tracking and monitoring to be done. Tracking and monitoring is the grease that will keep your marketing moving along toward more success. You can use your analytics to see what aspects of your campaign have produced results and optimize your campaign further.
Measure the Campaign
Measuring sales costs, campaign costs, and the number of customers you gained throughout a campaign from analytics will help you prove the exact ROI of your marketing campaign. The CAC (Customer Acquisition Cost) formula is one example of an easy and efficient way to calculate your ROI based on the number of new customers you gained from the campaign.
Campaign Sales Costs + Campaign Marketing Cost ÷ # of Customers Gained = CAC
You must remember that marketing ROI is not your only goal in your marketing campaign, however. It is also important that you are producing and publishing quality content for your audience that will keep them engaged and educated. The more engaged your audience is the more profitable your ROI will be.
For more metrics about how to prove marketing ROI for your financial institution, download our free eBook now!