What's scarier than wasting money as a small business owner? The thought should send chills down your spine. Yet, as a digital marketing agency, we see this all the time, it's as common as seeing a costume of Harley Quinn on Halloween. By not doing this, business owners are simply throwing money into the black-hole of digital marketing.
Less than 30% of small businesses are tracking a return on investment for their marketing.
Why Does Marketing Tracking Matter?
Most business owners don't know and are not tracking their return on investment when they run ads. That stat is scary, because when you don't know how a campaign did or which campaign was ACTUALLY the one that got you results, you can keep pouring money into marketing channels that aren't working. 😱 Generating new leads is a feat for businesses to achieve. By knowing which campaigns generated those valuable leads, it lets you know where to focus your marketing efforts and justifies your ad spend.
A Real Life Example Of How Tracking Grew A Canadian Business
Often when we begin working with businesses, they are limited to basic Google Analytics tracking. Don't get me wrong, this is a great start! Google Analytics stores a wealth of information that you can use to make business decisions, but we like to take it a step further.
When "Anonymous Wholesaler" began working with us on their digital marketing, they had Google Analytics setup but no website conversion tracking. As we were beginning to run ads, we wanted to ensure tracking was added to the website to determine how many people who visited converted into a lead. This tracking was added not only for the ads but on the whole website. This is what we found after just a few weeks of tracking:
- We could see the which traffic sources generated the highest conversion rate
- We could tell which ads were performing the best and make educated conclusions to update and optimize results
The traffic source that had the highest conversion rate was organic search traffic (Google searches). So using a little deductive reasoning, increase the traffic source = increase the number of website leads. To do this we implemented search engine optimization (SEO) strategies. After four months we increased the website traffic by 107%. Year over year, web traffic has over doubled with organic traffic increased by 71%. With the tracking we added, we could also see a organic traffic conversion rate of 13.65%.
This is an example of the return on investment proper tracking can provide, and this isn't the only client we've done this for either. Once we have this data, it's up to your team to determine your close rate and value of the average sale, which will give you your ultimate return on investment. There are also CRMs that will help you to keep track of this process with your sales team. Custom programming can be done to tie your website and CRM together in some cases to provide you with reports.
What Else Can Tracking Data Show?
The list is really endless, but analytics can often give insight into website issues. A key one that we see is a website's mobile vs desktop traffic. For another client of ours, we saw that most of their traffic came from mobile. However, the bounce rate on mobile was much higher than those who visited using a desktop. This shows us that there may be issues on the website when people try to view it on their mobile device, creating the need for a mobile audit. (Your website's bounce rate is the number of people that leave your website after they land without visiting other web pages.)
Use The Data You Have
Now if you're in that 70% of businesses that don't have conversion tracking on your website, start with using what you have, and then start collecting data. Whether that's looking at your Google Analytics data, or another source. And ask your customers how they heard about you, and keep an ongoing monthly tally of people's answers. Of course, we recommend adding conversion tracking to your website as well. We start with getting to know what your website should achieve and then implement tracking in order to track your goals such as contact form submissions, order completions, clicks on add to cart buttons, chats initiated, etc.
Are you in that 70% and are tired of not knowing which marketing campaigns are working? Let's chat, there are many ways to track campaigns on and offline.