One of the biggest pain points for marketers, especially those working with brick-and-mortar businesses, is that it can be incredibly difficult to determine ROI and find statistics and analytics on what's working, how many people your efforts are bringing in, and what the conversion rate is. Over time, digital marketers have evolved and managed to find new ways to calculate, or at the very least, estimate what the ROI is regardless of the business type.
A great way to do this is by utilizing landing pages with lead generation forms on them. After all, it's not at all difficult to calculate the marketing ROI of your lead generation forms.
Using landing pages to collect leads is a great way to lead people into the sales funnel of nearly any type of business. The fact that it establishes a way to determine marketing ROI doesn't hurt the cause either. Gathering data with a lead generation form can help a business in many ways, from growing an email list for your weekly newsletter to gathering cold leads to start calling or emailing about a business's products or services.
So let's get down to it. First of all, what is ROI? ROI stands for return on investment, meaning what the business is getting back in return for the money and/or time they're investing in their sales and marketing. Obviously a business wants to generate more money in return than they are spending on their marketing team/agency, ads, and other campaigns.
Or, to put ROI in an actual calculation:
ROI = (Revenue from Investment - Cost of Investment) / Cost of Investment
When you're looking at your lead generation forms, you need to first know what it takes to create one that works. You want it to be short and sweet and above the fold.
This means you only want to ask for the most pertinent information. And the closer to the top of the funnel they are, the less information you require.
In fact, some of the best top of the funnel forms ask for email address only, although most businesses at least want to get a name to go with it.
You also want your form to be one of the first things that load on a page, so people see it before they even have to scroll (above the fold). If your ad or social post already told people what they were getting when they landed on the page, you don't want to make someone work any more than they have to in order to enter their contact info and get their download or other lead magnets.
You need to keep track of the time it took you to create the landing page for part of the cost of investment. Then track the ad spend and time spent creating assets to promote the landing page. If anything else goes into getting people to that landing page, the cost must be recorded.
This is your overall cost of investment.
Then you need to put a system in place to track all revenue coming in from leads that were generated through that landing page. This is how you calculate an accurate ROI. If you're unable to track this, you can calculate an estimated ROI.
To estimate your ROI based on your landing page and lead generation form, you'll have to use your average sales growth and subtract that from the sales growth seen since this campaign went into place.
The formula would look something like this:
(Current Sales Growth - Average Sales Growth - Cost of Investment) / Cost of Investment
This way you're able to estimate the revenue or return this campaign has brought the business.
Calculating ROI isn't always a completely straightforward task. In fact, with the shortage of data-driven marketers, sometimes it's hard to even find a team who will work to achieve and calculate a good ROI for a business.
However, it is so important for a business to understand exactly how a marketing team and their campaigns are performing. Take advantage of these formulas moving forward within your own marketing campaigns.