{"id":20668,"date":"2022-04-07T16:54:04","date_gmt":"2022-04-07T13:54:04","guid":{"rendered":"https:\/\/affise.com\/?p=20668"},"modified":"2025-08-13T20:05:41","modified_gmt":"2025-08-13T17:05:41","slug":"digital-marketing-roi-in-an-ecommerce-business","status":"publish","type":"post","link":"https:\/\/affise.com\/blog\/digital-marketing-roi-in-an-ecommerce-business\/","title":{"rendered":"Understanding Digital Marketing ROI in an Ecommerce Business"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"20668\" class=\"elementor elementor-20668\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-6e95fbc elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"6e95fbc\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-32f709a\" data-id=\"32f709a\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-9c200d8 elementor-widget elementor-widget-text-editor\" data-id=\"9c200d8\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.20.0 - 13-03-2024 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p><span style=\"font-weight: 400;\">Every ecommerce business has a wide range of logistical questions to ponder. Should we develop an app to run alongside our website? <\/span><a href=\"https:\/\/www.onlydomains.com\/blog\/2021\/10\/28\/what-is-a-io-domain-and-why-should-you-consider-one\/\"><span style=\"font-weight: 400;\">What is .io domain<\/span><\/a><span style=\"font-weight: 400;\"> and how can it help our business? What is the ROI of our digital marketing?<\/span><\/p><p><span style=\"font-weight: 400;\">If that last question hasn\u2019t crossed your mind yet, now\u2019s the time. Calculating the ROI of your digital marketing is a worthwhile endeavor that can help your business in all kinds of ways and doesn\u2019t have to put a sizable dent in your marketing budget.\u00a0<\/span><\/p><h2><span style=\"font-weight: 400;\">What Is Digital Marketing ROI?<\/span><\/h2><p><span style=\"font-weight: 400;\">Digital marketing ROI (return on investment), is a way to put a dollar amount on how successful your digital marketing has been. It shows in a straightforward way whether you have made a profit or a loss on any particular advertising campaign in relation to ad spend.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">While it might be a good idea to enlist the support of a marketing agency, this will lower your ROI.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">You can see how much has been made in profit for each dollar spent on advertising. If you want to see whether you\u2019ve been getting value out of your digital marketing investment, an ROI <\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b2676b6 elementor-widget elementor-widget-html\" data-id=\"b2676b6\" data-element_type=\"widget\" data-widget_type=\"html.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\r\n.blog-intro .blog-intro__title_center {\r\n    top: 30%;\r\n    max-width: 500px;\r\n    margin: 0;\r\n}\r\n<\/style>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4ddcafa elementor-widget elementor-widget-image\" data-id=\"4ddcafa\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.20.0 - 13-03-2024 *\/\n.elementor-widget-image{text-align:center}.elementor-widget-image a{display:inline-block}.elementor-widget-image a img[src$=\".svg\"]{width:48px}.elementor-widget-image img{vertical-align:middle;display:inline-block}<\/style>\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"1280\" height=\"1382\" src=\"https:\/\/affise.com\/wp-content\/uploads\/2022\/03\/Digital-Marketing-ROI.png\" class=\"attachment-large size-large wp-image-20703\" alt=\"Digital Marketing ROI\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4057b53 elementor-widget elementor-widget-text-editor\" data-id=\"4057b53\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p style=\"text-align: center;\"><a href=\"https:\/\/www.emarketer.com\/content\/global-digital-ad-spending-2019\"><span style=\"font-weight: 400;\">Image Source<\/span><\/a><\/p><p><span style=\"font-weight: 400;\">calculation is the best way to find out. With record amounts being spent on digital advertising, this is now more important than ever.<\/span><\/p><p><span style=\"font-weight: 400;\">A positive ROI means that an advertising campaign has been successful in boosting profits. How much of an increase is deemed a \u201csuccess\u201d will depend on each individual business and their targets and aspirations, we\u2019ll look at this in more detail later on.<\/span><\/p><p><span style=\"font-weight: 400;\">On the other hand, a negative ROI would mean that a digital marketing strategy has failed to boost lead generation and in turn increase profits, and has in fact cost more than it has generated in revenue.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">However, some campaigns may still be seen as successful even with an initial negative ROI, if they\u2019ve been selling subscription services or other products that will generate more in profits going forward.\u00a0<\/span><\/p><h2><span style=\"font-weight: 400;\">Importance of Digital Marketing ROI for Ecommerce<\/span><\/h2><p><span style=\"font-weight: 400;\">There are numerous benefits to calculating the ROI of digital marketing campaigns for an ecommerce business. Any business that invests money into digital marketing efforts needs to analyze which aspects of its campaigns have been most successful, and which have been less so.<\/span><\/p><p><span style=\"font-weight: 400;\">This allows the business to adapt its advertising strategy for future <\/span><a href=\"https:\/\/affise.com\/blog\/ecommerce-marketing-strategies-to-increase-sales\/\"><span style=\"font-weight: 400;\">digital marketing campaigns<\/span><\/a><span style=\"font-weight: 400;\">. If the most profitable aspects of a particular digital marketing event have been an email campaign, then the business knows to focus in on this area in the future.<\/span><\/p><p><span style=\"font-weight: 400;\">While PPC and Adwords are attractive approaches to increasing your ROI, the holy grail of boosting ROI will always originate from organic search traffic.\u00a0\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Similarly, if a <\/span><a href=\"https:\/\/affise.com\/blog\/ideas-for-affiliate-marketing\/\"><span style=\"font-weight: 400;\">content marketing collaboration<\/span><\/a><span style=\"font-weight: 400;\"> with a particular blog or influencer has not produced the desired results, then the business knows to move away from this partnership in the future, and perhaps look into affiliating itself with brands that resonate more with its customers.<\/span><\/p><h2><span style=\"font-weight: 400;\">How to Calculate Digital Marketing ROI<\/span><\/h2><p><span style=\"font-weight: 400;\">There are a couple of ways to calculate the ROI of digital marketing. Measuring the gross ROI will give a simple, straightforward calculation that will show the direct relationship between how much has been spent on advertising, and how much has been generated in profit.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-19cd1da elementor-widget elementor-widget-image\" data-id=\"19cd1da\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"607\" height=\"189\" src=\"https:\/\/affise.com\/wp-content\/uploads\/2022\/03\/Calculate-Digital-Marketing-ROI.png\" class=\"attachment-large size-large wp-image-20698\" alt=\"Calculate Digital Marketing ROI\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5c9a46c elementor-widget elementor-widget-text-editor\" data-id=\"5c9a46c\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p style=\"text-align: center;\"><span style=\"font-weight: 400;\">Image Created by Writer<\/span><\/p><p><span style=\"font-weight: 400;\">For example, an advertising campaign that has cost $100 to run, but has generated $1000 in sales completions, would have a gross ROI of $10. This means that for every $1 spent on digital marketing, $10 has been generated in sales.<\/span><\/p><p><span style=\"font-weight: 400;\">However, in order to build a more complete picture of the actual effect that digital marketing has had on profits, a more complex calculation needs to be carried out. This is known as calculating the <\/span><b>net ROI<\/b><span style=\"font-weight: 400;\">.<\/span><\/p><p><span style=\"font-weight: 400;\">Calculating the net ROI of digital marketing can also be done with a relatively simple equation:<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b25b193 elementor-widget elementor-widget-image\" data-id=\"b25b193\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"484\" height=\"86\" src=\"https:\/\/affise.com\/wp-content\/uploads\/2022\/03\/Calculating-the-net-ROI.png\" class=\"attachment-large size-large wp-image-20699\" alt=\"Calculating the net ROI\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2af1a84 elementor-widget elementor-widget-text-editor\" data-id=\"2af1a84\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p style=\"text-align: center;\"><span style=\"font-weight: 400;\">Image Created by Writer<\/span><\/p><p><span style=\"font-weight: 400;\">This will give a percentage amount for the returns on the advertising investment. The higher the ROI, the more successful a campaign has been, generally speaking. Of course, this will depend on several factors, and different businesses will measure success by different standards.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">In order to arrive at the net profit, the cost of the digital marketing campaign needs to first be subtracted from the revenue it has generated.<\/span><\/p><p><span style=\"font-weight: 400;\">So, for the same advertising campaign as illustrated above, the net profit would be calculated by first subtracting the various costs, such as the cost of utilizing a <\/span><a href=\"https:\/\/www.brightpearl.com\/warehouse-management\/what-is-a-fulfillment-center\"><span style=\"font-weight: 400;\">shipping warehouse<\/span><\/a><span style=\"font-weight: 400;\">, from the gross income. If the accumulated costs came to a total of $200, then the calculation would be as follows:<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-842ad79 elementor-widget elementor-widget-image\" data-id=\"842ad79\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"475\" height=\"84\" src=\"https:\/\/affise.com\/wp-content\/uploads\/2022\/03\/Net-ROI-calculation.png\" class=\"attachment-large size-large wp-image-20708\" alt=\"Net ROI calculation\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1d54fe2 elementor-widget elementor-widget-text-editor\" data-id=\"1d54fe2\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p style=\"text-align: center;\"><span style=\"font-weight: 400;\">Image Created by Writer<\/span><\/p><p><span style=\"font-weight: 400;\">In this instance, the ROI would be 800%, meaning for every $1 spent on digital marketing, $8 has been generated in profit. This seems less impressive than quoting the gross ROI, but it does paint a much more accurate picture and is much more beneficial for working out the cost-benefit analysis of an advertising campaign.\u00a0<\/span><\/p><h2><span style=\"font-weight: 400;\">What Is a Good Digital Marketing ROI?<\/span><\/h2><p><span style=\"font-weight: 400;\">It\u2019s hard to quantify what is classed as a good ROI for digital marketing, as different companies will have different goals for their digital marketing campaigns. Some businesses will also wish to take into account the other positive impacts of digital marketing, such as increasing brand awareness, which will generate sales further down the line.<\/span><\/p><p><span style=\"font-weight: 400;\">New startups and small businesses will have a lower expectation of the ROI from their digital marketing approach as they attempt to build awareness of their brand and develop a loyal customer base. It will take time for a new ecommerce site to make an impact on Google search rankings and with advertisers, so most new businesses will consider anything above breaking even a success for their first few months, or even years.<\/span><\/p><p><span style=\"font-weight: 400;\">Digital marketing can be a long-term investment, especially in areas such as SEO, (search engine optimization), where it can take a while for the full effects to be felt.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-96c925d elementor-widget elementor-widget-image\" data-id=\"96c925d\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"455\" height=\"430\" src=\"https:\/\/affise.com\/wp-content\/uploads\/2022\/03\/Good-Digital-Marketing-ROI.png\" class=\"attachment-large size-large wp-image-20704\" alt=\"Good Digital Marketing ROI\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5e73740 elementor-widget elementor-widget-text-editor\" data-id=\"5e73740\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Some digital marketing channels are likely to provide higher ROI than others. Email marketing, for example, has an incredibly high ROI of around 380%. In other words, <\/span><a href=\"https:\/\/www.barilliance.com\/email-marketing-statistics\/\"><span style=\"font-weight: 400;\">for every $1 invested in email marketing, $38 is generated in profit<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">This is largely because email marketing campaigns are relatively cheap to run, and so take up a small chunk of your marketing spend.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">They often target customers who have either purchased before or who have considered purchasing but not carried on all the way through the checkout process. Cart abandonment emails, and other types of triggered email campaigns, generate <\/span><a href=\"https:\/\/www.barilliance.com\/email-marketing-statistics\/\"><span style=\"font-weight: 400;\">306% more click throughs<\/span><\/a><span style=\"font-weight: 400;\"> per email than non-triggered emails.<\/span><\/p><p><span style=\"font-weight: 400;\">More established brands selling products in a growing market should consider investing more heavily in digital marketing in order to <\/span><a href=\"https:\/\/affise.com\/blog\/new-product-growth-marketing-strategy\/\"><span style=\"font-weight: 400;\">secure a larger market share<\/span><\/a><span style=\"font-weight: 400;\">. In this instance, the ROI should be expected to increase year on year as the market share, and therefore profits, increase.<\/span><\/p><p><span style=\"font-weight: 400;\">The best way to monitor how \u201cgood\u201d your ROI is, is to compare it to the industry standards, and against those of your direct competitors. Digital marketing is a rapidly changing area of investment, so this is the eBay way to monitor the effects of your campaigns in real-time.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Alongside this, it\u2019s important to measure ROI against the historical performance within your own organization. Using ROI data downloads to set benchmarks and realistic targets for the future will help you monitor the peaks and troughs of your ROI performance, and keep a realistic picture of how successful different marketing tools have been for your organization.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9f741af elementor-widget elementor-widget-image\" data-id=\"9f741af\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"940\" height=\"699\" src=\"https:\/\/affise.com\/wp-content\/uploads\/2022\/03\/measure-ROI.png\" class=\"attachment-large size-large wp-image-20707\" alt=\"measure ROI\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b90a107 elementor-widget elementor-widget-text-editor\" data-id=\"b90a107\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p style=\"text-align: center;\"><a href=\"https:\/\/www.marketingprofs.com\/\"><span style=\"font-weight: 400;\">Image Source<\/span><\/a><\/p><h2><span style=\"font-weight: 400;\">Digital Marketing ROI Metrics<\/span><\/h2><p><span style=\"font-weight: 400;\">ROI is calculated using two key metrics: costs and returns. However, there are several other metrics at play when it comes to digital marketing, and keeping track of these is equally as important when analyzing the success, or failure, of a digital marketing campaign.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">There are many different tools available that can <\/span><a href=\"https:\/\/affise.com\/blog\/category\/updates\/affise-bi-integrates-with-appsflyer-pull-api\/\"><span style=\"font-weight: 400;\">help you track and analyze<\/span><\/a><span style=\"font-weight: 400;\"> the various metrics you wish to monitor, from click-through rates to total website traffic.<\/span><\/p><p><span style=\"font-weight: 400;\">We\u2019re going to take a look at six key metrics to track when measuring ROI, how to calculate their effectiveness, and what this can tell you about your digital marketing campaigns.<\/span><\/p><h3><span style=\"font-weight: 400;\">1. Conversion Rate<\/span><\/h3><p><span style=\"font-weight: 400;\">Tracking conversion rates is a good way to measure ROI over time. Boosting your click-through rates with the power of digital marketing is a great way to convert leads into paying customers, with email ad campaigns and social media promotions playing a large part in driving sales.<\/span><\/p><p><span style=\"font-weight: 400;\">When tracking conversion rates it is important to look at which marketing channels are performing well and which are not. Are emails generating the most leads, or is social media marketing performing better? Doing this allows you to focus your marketing efforts where they are most effective and can generate the best results.<\/span><\/p><p><span style=\"font-weight: 400;\">You can also track performance by device. Mobile devices are well known to generate high volumes of traffic but are less likely to result in conversions. If this is true for your ecommerce site, then you can tailor your digital marketing more towards converting mobile users.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2a8a14f elementor-widget elementor-widget-image\" data-id=\"2a8a14f\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"1035\" height=\"717\" src=\"https:\/\/affise.com\/wp-content\/uploads\/2022\/03\/Conversion-Rate.png\" class=\"attachment-large size-large wp-image-20700\" alt=\"Conversion Rate\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-eae17f9 elementor-widget elementor-widget-text-editor\" data-id=\"eae17f9\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p style=\"text-align: center;\"><a href=\"https:\/\/www.smartinsights.com\/ecommerce\/ecommerce-analytics\/ecommerce-conversion-rates\/\"><span style=\"font-weight: 400;\">Image Source<\/span><\/a><\/p><h3><span style=\"font-weight: 400;\">2. Cost per Lead<\/span><\/h3><p><span style=\"font-weight: 400;\">Some businesses will operate by using digital marketing to generate new leads which can be followed up on by sales teams. In this scenario, it is important to know how much each new lead is costing the business.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">This is done with a relatively simple calculation.\u00a0<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3e780e6 elementor-widget elementor-widget-image\" data-id=\"3e780e6\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"624\" height=\"71\" src=\"https:\/\/affise.com\/wp-content\/uploads\/2022\/03\/Cost-per-Lead.png\" class=\"attachment-large size-large wp-image-20702\" alt=\"Cost per Lead\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7ab6ad3 elementor-widget elementor-widget-text-editor\" data-id=\"7ab6ad3\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p style=\"text-align: center;\"><span style=\"font-weight: 400;\">Image Created by Writer<\/span><\/p><p><span style=\"font-weight: 400;\">Simply divide the total cost of a particular marketing campaign by the total number of leads that have been gained as a result of it. This will give you the cost per lead.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">If the cost per lead is higher than the amount being generated by closing your leads, then the marketing has not performed well, and the ROI will be negative.\u00a0<\/span><\/p><h3><span style=\"font-weight: 400;\">3. Lead Close Rate<\/span><\/h3><p><span style=\"font-weight: 400;\">Calculating the lead close rate is important, as leads only generate income for your business if they become paying customers. A high lead close rate indicates that your bounce rate is lower, and therefore your sales will increase, as will your ROI.<\/span><\/p><p><span style=\"font-weight: 400;\">It is important to keep track of how many leads you need to close in order to achieve your ROI goals. This will help with planning digital marketing campaigns and help give them focus. It is also worth keeping in mind the quality of the leads that are being closed, as some will be worth more to your business than others.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">The lead close rate can be calculated by dividing the total number of conversions by the overall number of leads.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1e16397 elementor-widget elementor-widget-image\" data-id=\"1e16397\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"624\" height=\"72\" src=\"https:\/\/affise.com\/wp-content\/uploads\/2022\/03\/Lead-Close-Rate.png\" class=\"attachment-large size-large wp-image-20706\" alt=\"Lead Close Rate\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ebebd9d elementor-widget elementor-widget-text-editor\" data-id=\"ebebd9d\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p style=\"text-align: center;\"><span style=\"font-weight: 400;\">Image Created by Writer<\/span><\/p><h3><span style=\"font-weight: 400;\">4. Cost Per Acquisition<\/span><\/h3><p><span style=\"font-weight: 400;\">Calculating your cost per acquisition will tell you how much it costs your business on average to secure a new customer. If you are spending more on acquiring new customers than they are actually spending with your business, then your ROI will be negative and your digital marketing will need a rethink.<\/span><\/p><p><span style=\"font-weight: 400;\">Cost per acquisition is calculated by dividing the total marketing costs by the number of sales that have been generated by said marketing.\u00a0<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4d5ed5b elementor-widget elementor-widget-image\" data-id=\"4d5ed5b\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"624\" height=\"72\" src=\"https:\/\/affise.com\/wp-content\/uploads\/2022\/03\/Cost-Per-Acquisition.png\" class=\"attachment-large size-large wp-image-20701\" alt=\"Cost Per Acquisition\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-466c864 elementor-widget elementor-widget-text-editor\" data-id=\"466c864\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p style=\"text-align: center;\"><span style=\"font-weight: 400;\">Image Created by Writer<\/span><\/p><p><span style=\"font-weight: 400;\">Knowing how much it costs to acquire a new customer helps you understand what your sales targets need to be in order to have a positive ROI.<\/span><\/p><h3><span style=\"font-weight: 400;\">5. Average Order Value<\/span><\/h3><p><span style=\"font-weight: 400;\">The average order value is a good metric to track for many reasons, but it can be especially helpful when looking at return on investment. It is simply the average amount in dollars that is spent when a customer places an order.<\/span><\/p><p><span style=\"font-weight: 400;\">To calculate the average order value, you simply divide the total revenue by the number of orders placed.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-fc43d67 elementor-widget elementor-widget-image\" data-id=\"fc43d67\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"624\" height=\"72\" src=\"https:\/\/affise.com\/wp-content\/uploads\/2022\/03\/Average-Order-Value.png\" class=\"attachment-large size-large wp-image-20696\" alt=\"Average Order Value\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f83e419 elementor-widget elementor-widget-text-editor\" data-id=\"f83e419\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p style=\"text-align: center;\"><span style=\"font-weight: 400;\">Image Created by Writer<\/span><\/p><p><span style=\"font-weight: 400;\">Tracking average order value is handy if you wish to try and increase the amount each customer is spending. Even a small percentage increase in AOV can result in a sharp increase in total profits. Small changes to digital marketing, such as increasing upsell through email marketing, can provide these positive changes to average order value.\u00a0<\/span><\/p><h3><span style=\"font-weight: 400;\">6. Customer Lifetime Value<\/span><\/h3><p><span style=\"font-weight: 400;\">This is one of the most important metrics when looking at ROI for digital marketing. Customer lifetime value gives you a picture of what a customer may spend during their time as a patron of your business.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Although initial lead conversions are important, they do not always paint an accurate picture of the returns that digital marketing has provided. Customer lifetime value can help you understand the long-term benefits of marketing and the ROI from it, by illustrating long-term gains.<\/span><\/p><p><span style=\"font-weight: 400;\">For example, spending $100 to convert a lead to a paying customer, who then goes on to spend $50 on an initial purchase, may seem to give you a negative ROI. However, if that customer spends a further $50 every week for the next ten years, then suddenly marketing to them seems like a much better investment.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">To calculate CLV, you should multiply the average yearly spend of a customer by the number of years that somebody typically remains a customer. Then, subtract the cost per acquisition of one new customer. This will provide the customer lifetime value.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-292f877 elementor-widget elementor-widget-image\" data-id=\"292f877\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"624\" height=\"70\" src=\"https:\/\/affise.com\/wp-content\/uploads\/2022\/03\/calculate-CLV.png\" class=\"attachment-large size-large wp-image-20697\" alt=\"calculate CLV\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-fe341e8 elementor-widget elementor-widget-text-editor\" data-id=\"fe341e8\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p style=\"text-align: center;\"><span style=\"font-weight: 400;\">Image Created by Writer<\/span><\/p><h2><span style=\"font-weight: 400;\">How to Improve Digital Marketing ROI<\/span><\/h2><p><span style=\"font-weight: 400;\">Now that you know how to calculate the ROI of your digital marketing, it is time to look at how it can be improved. Improving the ROI of digital marketing will lead to an increase in total profits across the business.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2442200 elementor-widget elementor-widget-image\" data-id=\"2442200\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"700\" height=\"661\" src=\"https:\/\/affise.com\/wp-content\/uploads\/2022\/03\/Improve-Digital-Marketing-ROI.png\" class=\"attachment-large size-large wp-image-20705\" alt=\"Improve Digital Marketing ROI\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c7ab811 elementor-widget elementor-widget-text-editor\" data-id=\"c7ab811\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p style=\"text-align: center;\"><a href=\"https:\/\/www.digitalexaminer.com\/small-business-marketing-roi\/\"><span style=\"font-weight: 400;\">Image Source<\/span><\/a><\/p><h3><span style=\"font-weight: 400;\">Begin by Setting Your Goals<\/span><\/h3><p><span style=\"font-weight: 400;\">The first step when looking to improve the ROI of your digital marketing is to set clear goals. By having a clear idea of what you wish to achieve with your digital marketing, you\u2019ll be able to guide your efforts and better structure your campaigns.<\/span><\/p><p><span style=\"font-weight: 400;\">This not only means setting goals for what marketing materials you wish to produce, but also for what impact you wish for them to have. Research benchmarks for your sector of the ecommerce industry, and set realistic goals for website traffic, conversions, average order value, and any other metrics you are measuring.<\/span><\/p><p><span style=\"font-weight: 400;\">When coming up with your goals, it is important to make sure they are SMART. This means setting goals which are:<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6117a2c elementor-widget elementor-widget-image\" data-id=\"6117a2c\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"720\" height=\"720\" src=\"https:\/\/affise.com\/wp-content\/uploads\/2022\/03\/SMART.png\" class=\"attachment-large size-large wp-image-20709\" alt=\"SMART\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-fb06f97 elementor-widget elementor-widget-text-editor\" data-id=\"fb06f97\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p style=\"text-align: center;\"><a href=\"https:\/\/pixabay.com\/illustrations\/goals-definition-target-1260139\/\"><span style=\"font-weight: 400;\">Image Source<\/span><\/a><\/p><ul><li style=\"list-style-type: none;\"><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><b>Specific<\/b><span style=\"font-weight: 400;\"> &#8211; don\u2019t use general targets such as \u2018increase ROI\u2019. Set specific goals such as \u201cincrease ROI by 40%\u201d.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><b>Measurable<\/b><span style=\"font-weight: 400;\"> &#8211; use metrics that have quantifiable values so you know when you\u2019ve achieved your goals.\u00a0<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><b>Achievable\/Accepted<\/b><span style=\"font-weight: 400;\"> &#8211; set targets that can be realistically achieved. Having goals that are too far out of reach will set you up to fail before you even begin.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><b>Relevant\/Reasonable<\/b><span style=\"font-weight: 400;\"> &#8211; use metrics that align with the goals of your whole business. Make sure your ROI targets are relevant to your overall business plan.<\/span><\/li><\/ul><\/li><\/ul><ul><li aria-level=\"1\"><b>Time-bound <\/b><span style=\"font-weight: 400;\">&#8211; set targets for when these goals should be achieved. This will focus your efforts and help provide accountability.<\/span><\/li><\/ul><h3><span style=\"font-weight: 400;\">Identify Your KPIs Based on Your Goals<\/span><\/h3><p><span style=\"font-weight: 400;\">KPIs, or key performance indicators, are the metrics by which you will measure how close you are to achieving your goals. Be sure to use KPIs which are relevant to the goals you have established. For example, if one of your goals is to increase your average order value, you should monitor metrics that directly affect this, such as the lead close rate.<\/span><\/p><p><span style=\"font-weight: 400;\">You\u2019ll need to use different KPIs depending on which type of digital marketing you\u2019re monitoring. For example, KPIs for SEO will be different from those for <\/span><a href=\"https:\/\/affise.com\/reach\/\"><span style=\"font-weight: 400;\">partnership marketing<\/span><\/a><span style=\"font-weight: 400;\"> or email marketing.<\/span><\/p><p><span style=\"font-weight: 400;\">Having clear KPIs will help keep all members of your marketing teams working towards the same goals, and will enable everybody to see what progress is being made. It will also allow everybody to know exactly what is expected of them and the marketing they are working on.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">There are a variety of third-party services available to make the process of <\/span><a href=\"https:\/\/affise.com\/cpapi\/\"><span style=\"font-weight: 400;\">collating data from across different advertising services<\/span><\/a><span style=\"font-weight: 400;\"> simpler.<\/span><\/p><h3><span style=\"font-weight: 400;\">Always Test Your Strategies<\/span><\/h3><p><span style=\"font-weight: 400;\">Trial and error may seem like a costly strategy to adopt for any aspect of your business, but with digital marketing, it really is the only way to proceed. The good news is, by tracking your KPIs and monitoring your ROI, you can quickly react to any aspects of your digital marketing campaigns that are not as effective, and reduce the amount of money you are wasting on them.<\/span><\/p><p><span style=\"font-weight: 400;\">Running A\/B tests on your digital marketing is a good way to do this. By developing two different versions of Google Ads or a landing page, for example, you can see which generates the more positive results and then proceed with adverts that reflect that. Google Analytics is an awesome tool for tracking open rates, site traffic, click through rates (CTR).<\/span><\/p><p><span style=\"font-weight: 400;\">You can carry across what you have learned to other areas of your marketing, too. If you find that using more informal language in adverts generates better ROI than an advert with a formal tone, you can begin using more informal language in your email campaigns.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-dd3b2b2 elementor-widget elementor-widget-image\" data-id=\"dd3b2b2\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"450\" height=\"340\" src=\"https:\/\/affise.com\/wp-content\/uploads\/2022\/03\/Test-Your-Strategies.png\" class=\"attachment-large size-large wp-image-20710\" alt=\"Test Your Strategies\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ae483bf elementor-widget elementor-widget-text-editor\" data-id=\"ae483bf\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p style=\"text-align: center;\"><a href=\"https:\/\/www.seobility.net\/en\/wiki\/AB_Testing\"><span style=\"font-weight: 400;\">Image Source<\/span><\/a> <span style=\"font-weight: 400;\">Author: Seobility &#8211; License: <\/span><a href=\"https:\/\/www.seobility.net\/en\/wiki\/Creative_Commons_License_BY-SA_4.0\"><span style=\"font-weight: 400;\">CC BY-SA 4.0<\/span><\/a><\/p><h3><span style=\"font-weight: 400;\">Evaluate and Improve<\/span><\/h3><p><span style=\"font-weight: 400;\">Generating data to measure your KPIs and your ROI is only beneficial if you act upon it. Testing your strategies will give you a good idea about which areas you can improve to generate better ROI on your marketing activities. This should be a continual process so that you are constantly evaluating how to make better returns on your investments.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Once you\u2019ve tested one aspect of an advert, such as the images used, implement the changes that your research suggests will be most positive, and then move on to testing other parts of the advert, such as the language used.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Once every aspect of the advert has been tested and revised based on what you have found, apply those changes to other areas of your digital marketing campaign.<\/span><\/p><p><span style=\"font-weight: 400;\">You\u2019ll be surprised at the findings that your data may lead you to. For example, the timings of adverts may impact how successful they are. Different channels may produce differing numbers of leads depending on the time of the day, week, or month. All this data can be analyzed to your benefit, so don\u2019t overlook any findings.<\/span><\/p><h2><span style=\"font-weight: 400;\">Final Thoughts<\/span><\/h2><p><span style=\"font-weight: 400;\">So there we have it, as we mentioned at the beginning, you had plenty of questions to ponder, and now you have a whole host more. But be assured that these questions are essential queries to think about.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">If you were debating what domain name to choose for your website, you would do your research and realize that having, for example, a .<\/span><a href=\"https:\/\/www.onlydomains.com\/blog\/what-is-a-ae-domain\/#4th\"><span style=\"font-weight: 400;\">ae domain means<\/span><\/a><span style=\"font-weight: 400;\"> that your website instantly becomes more global and opens up new markets to you. Similarly, doing your research around your ROI on digital marketing will tell you how you\u2019re performing as a business, and what areas you can improve in.<\/span><\/p><p><span style=\"font-weight: 400;\">Be sure to wisely choose the metrics you will monitor, and set KPIs that are relevant to your business and its goals. Monitor as much data as possible, you never know what conclusions you may be able to draw from it.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Every ecommerce business has a wide range of logistical questions to ponder. Should we develop an app to run alongside our website? What is .io domain and how can it help our business? What is the ROI of our digital marketing? If that last question hasn\u2019t crossed your mind yet, now\u2019s the time. Calculating the [&hellip;]<\/p>\n","protected":false},"author":29,"featured_media":21055,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"footnotes":""},"categories":[51],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Digital Marketing ROI for Ecommerce | Metrics &amp; Growth Tips<\/title>\n<meta name=\"description\" content=\"Learn how to calculate and improve digital marketing ROI in ecommerce\u2014track KPIs, boost conversions, and optimize campaigns for profit.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/affise.com\/blog\/digital-marketing-roi-in-an-ecommerce-business\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Digital Marketing ROI for Ecommerce | Metrics &amp; 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