The Importance of Measurement (ROI)

Any professional marketer will tell you that it’s not worth going to the effort of implementing an Internet marketing strategy (which is going to cost you time and money), without also implementing a system to track your progress and determine what is working for your particular business. By tracking each strategy you implement, you will be able to measure your return on investment (ROI) and determine whether or not the strategy is effective.
What is ROI?

Consider the following example: Let’s say you invest $500 in an online advertising campaign that generates $1,500 in revenues. Your profit (sales minus expenses), or ROI, is $1000 or 200%.

Here’s an easy way to track targeted campaigns. First, purchase a good statistics package to measure your website traffic. The statistics generated should tell you where your website visitors are coming from, where they are going, how long they are staying, and from which part of your site they are leaving. Then, use dedicated promotional codes for different campaigns that you test so that you can follow which campaigns are drawing customers to your site.

You may want to measure your progress weekly, monthly and yearly to determine whether you are achieving your objectives and meeting the targets you have set for your business. Here are some popular website analytics and statistic packages you may want to consider using:

WebTrends – DeepMetrix