Measuring B2B marketing ROI is an essential element of a business that helps you keep tabs on your business performance. Business owners can better understand the digital marketing aspect of their business and client base using ROI as a measurement tool. As a statistical measure, it can offer better insights into key marketing decisions and highlight areas of the business needing improvement.
Marketing ROI is, very simply, the return you receive on your marketing investments. Your income against the money you spent on marketing measures your ROI.
If you’re a the owner (or having another role) of a Business-to-business (B2B) company, you probably know, that B2B marketing consists of various parts and activities, such as SEO, PPC, Email Marketing, B2B Lead Generation, and so on.
It’s quite hard to stay up to date and see the real ROI based on all marketing activities, especially when some of them are quite complex to read. So, at Velainn we are gathering all the marketing efforts and simplify ROI numbers for B2B Companies, so that you know exactly if your investments bring value or the it is better to consider changing marketing strategy or tactics.
Marketing ROI gives you real numbers with which to assess business performance. With a simple percentage, you get a clearer idea of the success of your strategy and can make alterations accordingly.
Measuring B2B marketing ROI shouldn’t just be considered an efficiency tool but a standard business practice. It has, for example, applications in managing marketing budgets and strategies. A low ROI might indicate you need to expand your budget and explore new techniques.
Automated B2B marketing is one of the most effective ways to demonstrate ROI. While other analytics software and research campaigns can reveal general customer behavior patterns, automated marketing software like Hubspot takes it one step further by analyzing business performance on individual customer behavior.
It offers a more holistic picture of every customer’s journey. This, in turn, gives you access to more accurate data that can be used to inform future strategies.
In theory, ROI is a pretty straightforward formula. Subtracting the marketing investment from your business’s revenue in the relevant time period gives you a base number. You can turn it into a significant percentage by dividing by the initial investment and multiplying by 100.
Another option is to use the below formula:
(Sales growth – Marketing Campaign Expenses)/ Marketing Campaign Expenses
Let’s imagine, that your B2B sales grew up by $100,000 with the help of the particular marketing campaign. This campaign expenses were in total $20,000, so how we can determine ROI?
(($100,000-$20,000) / $20,000) = 400%.
Measuring B2B Marketing ROI
So the ROI us 400%. Was it a good ROI? I think, yes.
Of course, in practice, the process is a bit more complicated. ROI isn’t just about the basic revenue-investment ratio; there are a lot of other variables that need to be accounted for. You want to establish the specific influence of your marketing strategy on your returns.
As an example, measuring ROI from your 1) Content Strategy or/and 2) Ads campaign, you can do the following steps:
Set up analytics software on your website: Real-time traffic rates can be obtained only with active monitoring. However, you must differentiate between visitors and click-throughs that end in a purchase. As always, I recommend using HubSpot.
Measure organic traffic: This should reflect the people who turned to your site due to your advertising efforts or Organic search. Visitors who simply found your service through a specific google search would reflect marketing ROI refer to Organic only.
Track conversions: Your site should be set up to determine what qualifies as a conversion. This could be an actual purchase, a contact for a quote, or visiting a specific page on your site.
B2B marketing ROI should be actively analyzed to determine traffic patterns and identify changes in those patterns. This is also the best approach to staying on top of things and adapting as necessary.
There is always room for improvement. To boost your B2B Marketing ROI, you can try various tactics that fully exploit your marketing efforts. Some of them are below:
– Consider using Account Based Marketing;
– Inbound marketing focused on engaging your target audience and converting more warm leads;
Focus on the pain points of your buyer personas, create a pillar page with the relevant asset (e-book, white paper, infographics), and hide it behind the form. Then, this page must be promoted through ads.
Remember to measure the ROI of each Marketing Campaign. When you find the most profitable for your business, you can stick with it and use it multiple times.
Measuring B2B marketing ROI is an essential business aspect to stay on top of the game. As long as you know how your business is performing, you can remain vigilant in updating and adapting to changing climates.
Moreover, Velainn can help you implement digital and automated B2B strategies and effective analytics to assess progress. Check more about Inbound Marketing Implementation.