Marketing How To: How to Use Scorecard to Track Your Marketing ROI
In the current market scenario, businesses strive to get the most out of each and every dollar they invest. They also endeavor to spend most amount of time on activities that yield the best returns. Earning the maximum Return On Investment (ROI) of the time and money is the key to success in the current global scenario.
ROI is discussed when the marketing team is involved in various activities like building a media plan and measuring campaign results. ROI forecasts help the marketing team to decide which marketing campaign to choose.
Marketing how to experts usually use a scorecard. A scorecard helps them to project ROI, set goals and to identify flaws in the marketing plan. You need not be a software programmer to create a good scorecard. You may use Microsoft Excel.
Scorecard helps you to consolidate information you may have obtained using various analytical tools like Google Analytics. Rows may contain various channels (campaign and non campaign), like banner ads, email marketing, Facebook display ads, AdWords, direct mail, organic search, etc.
Columns may be titled with visits (due to the campaign), amount invested on the campaign, conversion (sales generated), cost per click, conversion rate, cost per sale, etc.
This is just a suggestion. You may modify to your convenience. Marketing how to experts recommend that a scorecard should be such that it should give you a snap shot of how your business is doing at this point in time. It is important to update your scorecard regularly.
Marketing how to experts use scorecard extensively in their business. It helps them to always stay on top. They use it both to forecast and track their ROI. It prevents them from drowning themselves in loads of data thrown out by various analytical tools.
Scorecard also offers you an opportunity to share data if you are in a partnership, thereby bringing in transparency. It is a great way to democratize your business if there are many people involved. A good scorecard simplifies your business brings in efficiency in its management.