How to measure ROI with Call Tracking
10 September 2014
The 2014 State of Marketing Measurement survey is in. Marketers and CEOs find it much more important to tie revenue with marketing activities than brand. The image below shows the most popular marketing measurements for 2014
Most popular marketing measurements for 2014
With a high focus on acquisition, marketers need to be able to make the connection between marketing activities and revenue. With call tracking it’s possible.
Gone are the days when digital marketers are only responsible for measuring clicks. With mobile becoming much more prevalent and phone leads increasing they must be able to tie these phone conversions back to their digital campaigns. And as we know the lines between online and offline are constantly blurring.
If you’ve implemented call tracking on your website, you’ve gone the first step to being able to join the dots between marketing expenditure and sales. You have visibility on every lead your marketing campaigns generate, but as we know, not every lead is created equal. We’ve written a blog post on how to close the loop between lead and sale in the past, which is worth a read if you are new to this. So for the purpose of keeping this article short(ish), I’m only going to briefly go into how you can measure how many phone leads turn into sales.
- Call Wrap Up. This feature allows our customers to classify each call as it happens. The sales team or call centre enter some values into the keypad after the call ends, so each call can be classified as a sale, lead or anything you desire. They can also assign a sales value to each call. Call Wrap Up is perfect for businesses that commonly make the sale on the first call
- CRM Integration. Using our CRM integration marketers can attach the marketing keywords, ads, campaigns and channels responsible for each inbound phone lead directly to each contact in their CRM system. Create reports from the CRM to see which marketing initiatives are responsible for the most won opportunities and the most profitable sales. This is perfect for businesses with a longer sales cycle.
Below is a simple example of how a company measured accurate ROI from common digital marketing channels with call tracking. The columns in red are the metrics not attainable without call tracking.
Cost per lead
Now that you have visibility on every lead the website generates (phone and web leads) it’s easy to calculate a cost per lead. In the example above the company factored in investment for each medium, but the same logic works if you want to measure CPL for campaigns, keywords, ads and anything else.
Cost per acquisition
By using Call Wrap Up or a CRM integration, businesses can determine how many phone sales their marketing campaigns generate. Add these sales to sales that come from web forms or traditional 'clicks' then divide total acquisitions with total investment for an accurate CPA figure.
Tie revenue back to marketing campaigns
With Call Wrap Up businesses can directly link phone sales to a dollar amount. Same goes for customers using our CRM integration. With these metrics in hand marketers can easily identify the campaigns with the highest returns. And according to the State of Marketing 2014 survey, that’s what it’s all about.
Keep an eye out for our next blog post on how to determine how offline campaigns effect online traffic and conversions.