Using Google Analytics is one of the best ways to measure your ROI. This includes recording the data of visitors like age, gender, and interests. It also helps to determine the most browsed websites and devices used by online users. Sometimes, the tool can help update the geographical location of the audience. The best thing about Google Analytics is it can track keywords used by visitors. This helps brands with target marketing and lead conversion.
How To Measure ROI Effectively
There are two easy ways to measure the ROI numerically:
- Calculate the net return on an investment divided by the cost of investment x 100 = Return on investment
- Subtract the final value of investment from the initial value of an investment divided by the total cost of investment x 100 = ROI
Different Methods To Measure ROI
Here is a simple guide for measuring your ROI with different methods:
- Absolute Return - Digital marketers must be aware of how absolute return is the first step of measuring ROI. It is calculated over a certain period of time span.
- Price Return - The price return is another way to calculate the ROI. You simply have to find out the difference between the final value and the initial value of the investment.
- Annual Return - Taking a look into the annual return gives a complete picture of the investment return, including the time value of money.
- Compound Annual Growth Rate - It is the best way to calculate the rate of return on investment on a yearly basis. This method calculates the compound interest on the return on investment over a period of time.
- Total Return - This method takes into account the total income, total investment and return on investment for a clear ROI calculation.
Applications of Google Search Console
Google Search Console is a free tool for monitoring and analysing websites. It is one of the easy ways to measure your ROI accurately. While one can easily gloss over Google Search Console, this can offer accurate data straight from Google, the value of which cannot be discounted at any cost.
Applications of Google Analytics
ROI analysis and cost analysis features of Google Analytics is one of the best ways to measure your ROI. Google Analytics can offer resourceful insight into data like the most popular content marketing type suited for businesses, best content format for increasing search visibility organically, and more. Apart from visitor data, it gives an overall understanding of how frequently you should post and the right time for the highest traffic. Google Analytics shows customer data over 4 different tabs depicting different results. These tabs include:
Benefits of Using Google Analytics for ROI
ROI is not always monetary. Sometimes, it is all about building the right marketing strategy for businesses that helps to bring fruitful results. Google Analytics offers easy ways to measure the ROI. It cuts down costs significantly and prevents wasting time on strategies that do not bear results. Let’s take a look into some of the finest KPIs for smooth conversion tracking with Google Analytics:
- Organic Traffic - It is an important Google Analytics metric that shows the number of organic visitors to the website. The metric also shows data based on session changes. Implementing the right keywords and taking the right SEO steps can help here.
- Search Visibility - This metric helps to indicate the frequency with which a domain comes up on Google search results based on the opportunity keywords used. Working on search visibility helps to work on website optimisation strategies that offer easy ways to measure the ROI.
- Bounce Rate - This is a metric from Google Analytics that depicts the percentage of users who have bounced back from websites without taking active decisions. It could be the result of various factors such as no call to action (CTA), weak loading speed, and so on. The usual bounce rate is between 40-60%. Anything more than this means the website is close to insignificant based on search rankings.
- Cost Per Click - This is a Google Analytics metric that opposes paid campaigns. Cost Per Click defines the money invested to attract each visitor from organic search results. It can be calculated by determining the entire budget for creating the website divided by website traffic. Low CPC indicates effective SEO strategy and high ROI.
- Return on Investment (ROI) - This is a direct indicator of all brand marketing campaigns. The metric helps to determine if the net income is worth the investment in website optimization. It can easily be calculated by the gain on the cost of the investment divided by the cost of investment. Google Analytics is one of the best ways to measure ROI.
This simple guide for measuring your ROI is highly effective for businesses in the long run. Optimising websites, brands, and domains is essential to keep up in today’s competitive market. Taking control of your website through powerful marketing tools and strategies gives you a competitive edge. Integrating the right tools gives access to accurate data. So, make sure you are making the best use of Google Analytics and Google Search Console for improved website results. It also helps you monitor important website data consistently.