It is true that digital PR strategies and campaigns can really be effective for the growth of your business. But in order to utilize all the benefits of it, you need to monitor, measure, and constantly tweak all those strategies.
By calculating its ROI or return on investment, you will be able to measure its effectiveness. So, in order to measure how effective your digital PR strategies and campaigns are, you first need to calculate the ROI accurately.
You need to compare the profits you get from a digital PR campaign with the cost of the same for measuring the return on investment.
So, the basic ROI calculation is:
ROI = (Net Profit/Total cost) ✕ 100.
If you do not have any goal or objectives or have inaccurate data calculating ROI or return on investment of digital PR campaigns will be of no use. And you also can improve your ROI by improving the net profit or reducing the total cost of the campaign.
So, it is vital to consider the following things before you are going to calculate ROI.
You wish to prove that your digital PR campaigns have effectively brought success in revenue for the very organization to the management. Most often, marketers only wish to prove the ROI of their work, but in accessing the success of your methods, ROI should not be the only metric.
So, before you deploy and measure your strategies and campaigns, it is also crucial to understand your unique marketing objectives. Not everything of your digital PR strategies will directly dow in ROI.
Every business is unique, so is yours. It is even different from your competitors in the market. So, your KPIs have to reflect this. In case you are using the KPIs of other businesses, you will get the data, which is not useful for your own.
So, here are some common KPIs that you need to consider.
- Unique Monthly Visitors
- Cost Per Lead
- Cost Per Acquisition
- Return on Ad Spend
- Average Order Value
- Customer Lifetime Value
- Lead-to-Close Ratio
- Branded Search Lift
- Average Position
- Non-Brand CTR
Your data collection methods and system have to be clean for measuring your KPIs. In case any inconsistency or hiccups are there while entering, collecting, transferring, or calculating, you will end up with information and data that can ruin your ROI and KPI numbers.
Incorrect KPIs are of no use to measure the effectiveness of your digital PR strategies and campaigns for converting, attracting, finding online customers. Before you begin collecting data, you have to make sure that you have already identified the KPI that you want to track and assess.
Have you ever thought about how the amount of search page result rankings, cost-per-lead, website traffic, and shares of your Instagram or Facebook posts convert into digital PR ROI? These KPIs are great indicators of how well or not all your digital PR efforts are in generating conversions and attracting customers.
You will be able to experience a better ROI as a result of improved numbers of session duration and better website traffic via optimizing your website content. The authority and trust that is achieved KPIs will definitely take forward to increased subscriptions and sales. Eventually, this will turn into greater revenue for your organization.
Though the method of calculating the ROI of your digital PR strategy and campaign is pretty simple with the equation, for that, you need to gather some basic pieces of information. And all these pieces of information have to be in their correct form and clean. You also need to make sure that you are not following the path of any other organization or any of your competitors from the same industry, as every business is unique in its own way.