NRSNG Academy and Picmonic are two resources that students are using to cut through the fluff and decrease the hours of studying in order to… (Read More)
The post Nursing School Tips: NRSNG + Picmonic = Efficient Studying appeared first on Picmonic.
Hello, and welcome back to your favorite recurring segment on the latest events in business and technology: News You Can Use. Here, we review through the hottest happenings in our industry, and provide some informed commentary on what these developments might mean for your business.
If you’re a marketing or technology professional, you should be taking time out of every week to catch up on the latest current events. Because, after all, being an informed consumer of the news isn’t just good civics — it’s great for business.
1) Amazon to split HQ2 locations between NYC and D.C. (NYTimes)
We’ve seen more than a year of will-they-won’t-they speculation over where the Seattle-based e-commerce giant Amazon will build their much-touted second headquarters. Indeed, the competition to be chosen as HQ2 has been equal parts amazing and ridiculous: The mayor of Kansas City, MO, reviewed 1,000 Amazon purchases and filmed an unboxing video, while the Atlanta suburb of Stonecrest promised to change its name to Amazon, GA.
But in a move that’s sure to raise some eyebrows, news has leaked that instead of a single location for HQ2, Amazon is planning to split their second headquarters between New York City’s Long Island and the Alexandria suburb of Washington, D.C. Analysts note that Amazon already has more employees in the D.C. and NYC regions than anywhere else outside of Seattle, which would explain the split decision.
For much of 2017 and 2018, more than 240 municipalities across the U.S. attempted to lure the tech giant with marketing gimmicks, promises of new infrastructure, workforce development programs, and billions upon billions in tax incentives. With the news that HQ2 is being split between two cities, it remains to be seen whether NYC and D.C. will continue to offer Amazon their full incentive packages, or whether they will attempt to renegotiate. (Given that NY Governor Cuomo has pledged to change his name to ‘Amazon Cuomo,’ our money’s on the former.)
After nearly a year of negotiations, the European Union is reportedly close to passing a comprehensive new tax scheme that would impose additional charges upon internet giants like Google, Facebook, and Apple. Dubbed the “Fair Taxation of the Digital Economy Act” by the European Commission, the rules would “ensure that digital business activities are taxed in a fair and growth-friendly way in the EU.”
At issue is the fact that digital firms pay much less tax in the EU for transactions and services compared to their brick-and-mortar counterparts. Under the new plan, EU member-states would impose a 3 percent levy on the digital revenues of large firms that have been accused of dodging tax payments by routing their profits to the low-tax EU nations like Ireland. As a result, massively profitable firms like Amazon pay unusually low tax rates on their earnings.
However, several EU members — including Germany and France, two key players — have held back from fully endorsing the EU’s new plan in a bid to push further reforms of the EU’s minimum corporate tax rates.
While opposition to taxation and regulation are shibboleths in the tech industry, the EU’s plan is largely sound: Bigger tech firms have an unfair advantage over small businesses because of how they’re able to avoid paying taxes on corporate profits. By imposing a small additional tax on these already-massively-profitable companies, the EU is leveling the playing field for smaller businesses, encouraging competition and innovation.
In a surprise move, Amazon and Apple have announced a partnership that will allow Apple to sell devices directly on Amazon’s storefront for the first time ever. Under the new agreement, Amazon will being listing the newest Apple and Beats products as soon as they are released — such as the forthcoming iPhone XS and XR. In return, Amazon will de-list or remove any third-party resellers who sell Apple products on the site.
The move is a serious blow to Apple resellers and refurbishers, who previously were the only way to purchase Apple devices on Amazon. It’s also part of Apple’s increasingly strict crackdown on resellers, refurbishers, and other third parties — the company has come under criticism in recent years for consumer-unfriendly practices like voiding warranties for devices that have been repaired by a third party. (Apple was forced to backtrack following harsh public outcry over the move.)
While this partnership will no doubt pad Apple’s profit margins for this quarter, it also serves as a stark reminder that retailers are more dependent than ever on Amazon, which has become increasingly bold when it comes to leveraging its considerable economic clout to deter rivals and crowd out the competition.
Google has faced a historic backlash after it was revealed that a top executive was paid $90 million to exit the company after being accused of sexual harassment. Workers at Google offices around the world staged mass walkouts over Google’s handling of the dismissal, as well as what protesters allege are similar cases of sexual harassment that went unaddressed.
In a company-wide email, Google CEO Sundar Pichai has announced that the company will end forced arbitration for sexual misconduct claims, improve its process for internal investigations, offer greater transparency about harassment claims and outcomes, and create new support systems for employees who come forward.
While Google’s move can rightly be criticized as reactive rather than proactive, we applaud any and all efforts by tech companies to improve their internal culture. Sexual harassment has no place in any industry, and firms that refuse to recognize this fact will continue to lose the talent that made them so exceptional in the first place.
Ajit Pai, the chair of the U.S. Federal Communications Commission, has sent a letter to the chief executives of 13 major telecoms and service providers demanding that they implement a system by 2019 to combat the billions of ‘robocalls’ and other unwanted calls received by Americans each month.
The letter follows a May demand by the FCC for the industry to adopt a ‘call authentication system’ that would end the use of illegitimate ‘spoofed’ numbers, where the caller disguises their number from caller ID systems. Canada put similar protections in place this year, and any U.S. system would likely mirror that of our neighbors to the north.
“I am calling on those falling behind to catch up,” Pai wrote in the letter. “If it does not appear that this system is on track to get up and running next year, then we will take action to make sure that it does.”
Here at CallRail, we’re doing our part to combat robocalls. Read more about how our proprietary anti-spam system helps prevent unwanted calls from reaching your business.
The post News You Can Use: Amazon’s split decision, new EU tech tax, FCC takes aim at ‘robocalls’ appeared first on CallRail.
Wix is the website builder of choice for over 110 million people worldwide — it’s simple, mobile-friendly, and requires absolutely zero development knowledge. That’s why we’re excited to announce the first official call tracking integration with the Wix platform. With the new CallRail-Wix integration, you can add CallRail’s dynamic call tracking to any Wix website with a simple copy and paste.
The power of CallRail and Wix
Whether you’re a small business using Wix or an agency building Wix websites for your clients, it’s essential that you understand how inbound leads are navigating to your site and converting in order to optimize your ad spend. CallRail’s native call tracking integration with Wix now allows our customers to do just that.
The Wix integration automatically installs CallRail’s swap.js code on every page of your Wix website. When a web visitor navigates to your Wix site, we’ll swap in the tracking phone number associated with the marketing source they came from. This allows us to attribute phone call and text message conversions back to the source, campaign, or PPC keyword that drove the website visit.
Why integrate call tracking with Wix
CallRail is the only call tracking provider that requires zero coding to be compatible with Wix. Integrating CallRail and Wix can help your business…
- Gain full phone call and text message attribution
With the rise of mobile, it’s critical to track the most important mobile conversion point: The phone call.
- Access detailed reporting
This integration with Wix allows users to view leads from inbound calls inside CallRail’s intuitive, user-friendly dashboard and reporting engine.
- Analyze inbound lead quality
With access to Conversation Intelligence data for leads from Wix websites, not only can you track where leads are coming from, but also how they’re impacting sales.
Getting Started with CallRail and Wix
To get started with CallRail’s Wix integration, you will need to have a Wix Premium site — read our support article to learn more.
If you have questions or suggestions about how to put the CallRail-Wix integration to work, check out the CallRail Community, where you can connect with other marketing professionals and share best practices.
The post The CallRail-Wix integration: Easy attribution for all your sites appeared first on CallRail.
The truth is, as long as you’re working to engage with partners and grow your channel, you could invest in a PRM platform—but should you?Ask any partner program manager and you’ll no doubt hear a different opinion about when a company should invest in an integrated partner relationship management (PRM) platform.
While some partner program managers might recommend investing in a PRM tool as soon as you start searching for partners, others make do with homegrown solutions well beyond the point where it becomes a hindrance.
How do you know when it’s the right time to invest in a PRM platform?
The Risks of Starting Too Late (or Too Early)
The simple answer is that you should invest in a PRM platform once your partner program has established partners and is generating revenue.
But, as with anything in business, it isn’t quite that easy. If you start too early, your lack of established processes and unproven revenue numbers can make such an investment difficult to justify. The longer you kick the can down the road, though, the more difficult it will be to collect scattered partner data and to break bad habits that inhibit your ability to scale.
Waiting too long to invest in a dedicated PRM platform has plenty of pitfalls:
- You don’t have a single source of record for partner data. In-house partner management solutions tend to be pieced together as partners need new features, like automated deal-registration flows or sales content management. Data becomes scattered across many different tools and locations, so combining that data into a single source of record becomes a time-consuming and expensive proposition.
- You’re likely missing out on deals. Emails go unseen, spreadsheets get misplaced, and partners frequently forget how to let you know about new deals.
- Your partners start to feel neglected. Piecemeal communication and disorganized marketing efforts can give the impression that your partners are near the bottom of your priority list, leaving them unmotivated to make referrals and help sell your product.
- You start to develop bad habits. Knowledge of how your partner program operates becomes scattered across your organization, and your team compensates by creating hacks and shortcuts to get their work done. These bad habits are difficult to break and can inhibit your ability to scale your program.
Rolling out a PRM platform before your team is ready also can create headaches:
- Your processes aren’t mature yet. When you’re first starting out, you’re still working out how your partner program needs to operate. Rolling out a unified platform too early makes it more expensive and time-consuming to make sweeping changes to how you run your partner program.
- You need enough partners to make the investment worthwhile. Asking executives to sign off on a dedicated PRM platform is far more likely to succeed when you can show hard numbers that prove how the investment will help grow the business.
How to Know When You’re Ready for a PRM Platform
To help you out, we’ve put together five key questions you can ask your team to determine whether it’s the right time to invest in a PRM platform.
1. Does your team have an organized, documented sales process for partners?
Just like having a well-oiled pipeline is critical for direct sales, your channel team needs organized and documented procedures for managing partners, deals, and leads before investing in a PRM platform.
The concept of a “partner pipeline” is probably more critical than the PRM technology itself. Thinking about your end-to-end partner experience as a pipeline forces you to streamline your efforts into a measurable and repeatable process with clearly defined stages and actions. It nails down a shared understanding between your team, your organization, and your partners that will make your partner program more actionable and more scalable.
It’s important to define and implement partner-facing processes that are in your partners’ best interests—and then to shape your technology platform around those interests. The flexibility of Allbound lets you shape your PRM platform around your partners’ needs and processes, so it’s essential to have your partner pipeline established before rolling out additional tools.
2. Does your team find it challenging to keep all your partner program information and communication organized?
When you have only a handful of partners, things are easy to manage. A shared spreadsheet can suffice for tracking partner contacts, marketing materials can be easily distributed using file-sharing services like Dropbox, and partners can submit referrals and deals manually through email.
As you grow beyond a few partners, though, most teams notice they start losing their overview of relationships with potential and existing partners. Who submitted this deal again? Where is that white paper my partners keep asking for?
As soon as this begins to happen, either you’ll make mistakes or your team will need to invest extra time and energy into keeping everything in order—time and energy that would be best used elsewhere. This is the ideal point at which you’ll want to consider rolling out a unified PRM platform. As you continue scaling your channel, a tool like Allbound can help bring order to the natural chaos of communicating with multiple partners.
3. Is your team having trouble motivating your partners to make sales?
In addition to running their own business, your channel partners most likely sell more than one product or service. Of course, that’s to be expected, but it does mean that if you want them to put effort into selling your products and services, you’ll be competing for your partners’ attention and loyalty. Without a centralized system to communicate with your team and to track their progress, partners can often feel neglected and unmotivated to make sales or refer customers to your company.
Channel partners are most likely to sell the solutions of companies that they like working with. Keeping a personal connection can go a long way toward motivating your partners, and PRM tools like Allbound help maintain that personal connection as you scale your partner program. Keeping the lines of communication with your partners open and being able to quickly provide them with any assistance they need will help them focus on your products and services.
It’s also critical to make it as easy as possible for your partners to sell. Your partners will always take the path of least effort—they want products that are easy for them to sell, from companies they’re familiar with. Having a centralized platform for partners makes it easy for them to get the information they need to sell your products and services, and it motivates them to make referrals and sales through rewards, gamification, and friendly competition.
4. Is your team having trouble providing sufficient sales and marketing support to your partners?
Time is your team’s most valuable resource; you need to make sure they’re able to use their limited hours as efficiently as possible. Once your channel has grown beyond a few partners, providing customer support and helping them one-on-one with sales and marketing takes up a significant amount of your team’s schedule—time that could be spent reaching out to potential partners and growing sales.
Without growing your team, then, how do you continue supporting your partners? The answer is to focus on creating universal sales, marketing, and partner support resources, distributed through a shared self-service partner portal. PRM tools such as Allbound make it easy to set up a user-friendly, professional portal where your partners can register deals, track sales targets, access sales and marketing content, and more.
5. Are you looking to scale your partner program quickly?
The ideal time to invest in a PRM platform also depends on how quickly you’re looking to scale your partner program. Generally, the faster you need to grow, the earlier you should look into a partner management solution. If your plans involve a team (or multiple teams) of partner managers that all need a consistent view of the program, a PRM tool like Allbound can help keep everyone in sync as you scale.
Without a PRM platform, partner program performance data is spread across many different applications, users, and systems. This makes it impossible to gain insight that could be used to improve your partner program. As you scale, measuring your efforts will help you determine, for example, which partners are performing best and which partners could benefit from a little help.
Is Investing in a PRM Platform Worth the Risk?
Absolutely! Getting a PRM platform in place too early is far less risky for your business than waiting too long. A PRM platform like Allbound gives you the flexibility you need to grow from a handful of partners to a thriving channel. If your team is losing track of partner communications and deals, struggling to capture the attention and motivation of your channel partners, fighting time constraints, or growing rapidly, now might be the time to invest in a PRM platform.
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The post When is the Right Time To Invest in a PRM Platform? appeared first on Partner Relationship Management Software (PRM).
Learning how to use the PetDesk dashboard is easy; getting your clients downloading and using the app may be more challenging. We found our customers often asked us for ideas on how to encourage their clients to use the PetDesk…
The post 7 Best Practices to Get Clients to Download Your Vet App appeared first on PetDesk.
The Massachusetts General election on Nov 6th is just around the corner and with Boston being our hometown, we are watching the discussion around ballot question #1 closely.
If passed, Question 1 would establish ratios limiting the number of patients that could be assigned at a time to individual nurses at Massachusetts hospitals and health clinics.
Q + A between SEED SPOT and Emily Goodstein, Online Fundraising Strategist
By Bianca Buliga, Digital Marketing Manager
SEED SPOT: We recently had the opportunity to sit down with Emily Goodstein, a fundraising strategist, author, and advocate. She took the time to talk with us about #GivingTuesday! We got to pick her brain on all things #GivingTuesday. We’re excited to share her thoughts, insights, and best practices!
SEED SPOT: Tell us about yourself! How did you gain your fundraising expertise?
Emily: I’m Emily Goodstein — a lifelong resident of the District of Columbia, digital marketer and online fundraising enthusiast. I’ve spent over 15 years working at or with nonprofits, helping purpose driven organizations tell their stories in effective ways to gain new supporters. Before starting my own digital marketing practice, I worked at Convio and Blackbaud where I had a front row seat while good for the world groups put together strategies and campaigns to raise as much money from their donors — using email, web and social media tactics to creatively engage supporters. As a consultant, I work with 12 organizations doing much of the same work.
SEED SPOT: What are common misperceptions about #GivingTuesday that you’d like to debunk?
EG: Oh, there are so many.
One of my favorites is that #GivingTuesday is only about giving money — but it is really about all kinds of giving. Many organizations break from fundraising asks on #GivingTuesday and ask for donations of time or items they need. Other organizations use the day to simply say thank you in the midst of a sometimes overwhelming end of year season.
Another myth about #GivingTuesday it is just one day — when in reality in could actually kick off an organization’s entire end of year fundraising cycle. And taking this one step further, prep for #GivingTuesday should really begin the day after last year’s GT ended — thanking your donors and thinking about what worked and what didn’t.
SEED SPOT: How can entrepreneurs leverage #GivingTuesday as a springboard into a lucrative year-round giving campaign?
EG: I love this question! The truth is, a good #GivingTuesday strategy is actually just a good year round fundraising strategy. So starting in January, folks may consider some list growth tactics that can take place all year long (so when GT hits, they have a whole bunch of eager fans waiting to hear from them). Consider a pop-up on your website to gather email addresses or running a contest where folks can enter by giving their email. And spend the year cultivating donors and building a relationship with them — showcasing how you and your cause add value to their lives or their communities. So, that way, when you get around to asking for money in November and December, folks know how important your organization is and don’t feel like the ask comes out of the blue.
The other great thing that should happen year round is reaching donors on many channels — not just by email. So once you get the email address of a supporter, consider re-targeting them on Facebook via the Custom Audience feature or sending a strategic direct mail piece. Or giving them a ring to thank them for their involvement without a fundraising ask (SEED SPOT note: this is a great way to engage your Board Members! Imagine getting a thank you call from an organization’s Board!). All this work will mean that your donation pitches are better received and donors already feel connected to your cause before they are asked to support it.
Lastly, remember to spend non-peak fundraising months testing what works well. You can always do an A/B test of email subject lines or use the Facebook promotion feature to test messages or imagery with a small budget. This way, when November and December roll around, you will know what will resonate with your audience to gain the highest donation response rate possible.
SEED SPOT: What are some common mistakes entrepreneurs make in nurturing donor relationships and how can these be avoided?
EG: The biggest mistakes I see time and time again are organizations thinking #GivingTuesday is a super saturated time and they don’t plan to participate because the field is so crowded. The kicker here is that we see the number of dollars raised growing year over year (over $300 million was raised online in 2017, up 78% from 2016) so if organizations choose not to participate in #GivingTuesday, they’re actually leaving money on the table. For organizations who aren’t in need of fundraising dollars (or, like some of my clients, organizations who had other reasons to fundraise only a month or so before #GivingTuesday hits), it may be a time to ask for non monetary gifts — but it is a time when your community is expecting to hear from you — even if your message is purely one of thanks.
The other common mistake, which can be easily avoided, is entrepreneurs only communicating with supporters in a sometimes stuffy newsletter format. Don’t wait until you have seven or eight things to list in a newsletter — it is okay to send more emails with only one ask per message as opposed to packaging everything up into a periodic update. Additionally, feeling forced to produce content just because it is “time to send out the next newsletter” is a really easy mistake to make. But cut yourself some slack and email your list when you have something to tell them, not because the calendar says it is time to send an update.
SEED SPOT: Any additional resources entrepreneurs can look into for more help?
The team at the Nonprofit Technology Network has some amazing resources too: https://www.nten.org/
SEED SPOT: A huge thank you to Emily for helping us give power to our #GivingTuesday strategy! We at SEED SPOT are excited to take her advice to amplify our own #GivingTuesday campaign. Learn how you can donate to SEED SPOT here.
Want to hear from other Content Experts eager to help you improve your business? Consider attending a SEED SPOT 2-Day Launch Camp – one may be coming to a community near you!
Need some advice on making an ask to a donor? Learn some tips from a SEED SPOT Team member here!
The post How to Spin Your #GivingTuesday Campaign into a Full-Year Culture of Giving appeared first on SEED SPOT.
For many, it seems that finding your perfect partner can be a real challenge. You know you want partners, you’ve heard how great they can be and how much they can help your business grow. But so far they have remained elusive, mythical business creatures. Hunting for your ideal business partner should not be as impossible as the quest for Sasquatch.
First thing’s first, before you start your partner search ask yourself, do you know where to find partners or how to lure them in? Knowing these things are key to making sure you’re following the right track to finding your perfect partner. If the partners you do recruit aren’t the ideal fit, they are likely to churn. On top of that, if you’re chasing the wrong type of partner, your efforts can be costly in both the long and short term. In fact, partners churn about 10% of their vendors per year. If you’re just starting out your hunt for your perfect partner there’s a handful of things to consider.
Hunting for your ideal business partner should not be as impossible as the quest for Sasquatch.
1. How to Identify Your Ideal Partner.
When looking for your perfect partner, ask yourself:
- Which type of partnerships are you looking to add to your business?
- What responsibilities will your partner have?
- How much time and money are you willing to invest in your partner program?
- Your ideal partner may be the right fit for you—are you the right fit for them?
- How will you define success for your partners?
- How will your partner define their own success with you?
Ask yourself these questions before jumping into a partnership to make sure you are setting yourself and your partners up for success. After all, the goal of any partnership is to have two equally invested parties who are both benefiting from the success of the relationship.
2. Developing Your Ideal Partner Persona
After you’ve determined your hunting strategy, which partner type you would like to implement, and your partner responsibilities, it’s time to build your Ideal Partner Persona (IPP). Assigning a name, title, industry, and business size to this profile will help you adjust your messaging to fit that specific person. Everyone wants to be communicated with like a valued person and tweaking your messaging to match the language and values of that persona will help bridge the relationship gap and relate with their goals.
When creating this partner persona, you want to make sure your IPP is someone who isn’t so different from you that your cultures and products/service offerings do not align, but different enough to have a diverse audience—giving you the chance to address prospects that are normally outside of your reach. Remember, the partnership has to be a good fit for both of you, otherwise, your partnership could end with a messy breakup. If that partnership doesn’t work out, don’t think the perfect partner is nothing more than an urban legend—get back to hunting!
3. Determining the best way to lure in your perfect partner.
You’ve spotted your perfect partner, it’s time to lure them in. The goal of any partnership program is to be exclusive enough to drive interest, but open enough to avoid disqualifying solid partner candidates.
In addition to referral commission, helping your partners feel well educated and prepared to have conversations with your customers is a huge incentive. The easier it is for partners to sell your product, the more the partner will be willing to sell for you. With partner education in mind, it may be a good idea for you to offer free quarterly training, an invitation to an annual partner conference, reserved time with the engineering team to request new features or integrations, and/or a subscription to your platform for a length of time. Making the education a known factor from the beginning will help partners to feel supported.
4. How to Get on the Right Track for Long-Term Partnerships.
Like any employee, partnership relationships work well if you set achievable, task-based goals. Think about this, if there are free goodies on the line, in addition to your standard agreement, your partner will work hard to earn those goodies. Not to mention, if you elevate your partner’s status based on their achievements, they will feel valued and recognized. How many times have you referred six friends to try yoga, spin, karate, etc. just so you could get a free month of classes? I have. Those rewards are highly motivating. As a bonus for the vendor, referred customers are more likely to adopt, quicker. It’s a win for the partner and a win for the vendor.
5. Eyes on The Prize—Now What?
After demonstrating to your partner all you have to offer, it’s their turn to offer benefits to you. Any relationship, including partnerships, is a two-way street so it’s important to make sure that your partner is as invested as you are in the relationship.
Finding your perfect partner isn’t impossible and doesn’t have to be as elusive as the search for Sasquatch. Determine what partner type is best for your business, what characteristics make those partners ideal, where to find those partners, how to intrigue those partners, and what will give the partner enough incentive to join your journey. If you can answer all of those questions, the next step is to start hunting. Get ‘em, tiger!
The post Urban Legends Debunked: Perfect Business Partners Do Exist. appeared first on Partner Relationship Management Software (PRM).
Whether you work in-house or have clients, marketing ROI is a critical component of making sure your marketing efforts are working — and proving to key stakeholders that you’re adding value.
In this post, we’ll review the data you need to pay special attention to when measuring ROI, as well as how to calculate ROI based on your campaign goals.
Prep work for calculating marketing campaign ROI
Crunching numbers and calculating ROI is the easy part. Most of the work goes into choosing the right ROI calculation for your business or campaign and then pulling the necessary data to plug into the equation.
Determine your revenue and marketing spend: Need I say more? For campaigns where sales are the goal, you’ll need to know your post-campaign revenue and total marketing spend. If you’re optimizing for leads or other non-monetary conversions, see below.
Calculate the value of future customers: For some campaigns, success is measured in conversions that will turn into revenue later — think lead form submissions, newsletter subscriptions, etc. But it’s still important to ascribe a dollar value to each conversion because, while these calculations aren’t exact, they at least enable you to get a general idea of how much money your hard-won conversions will bring in.
The two most common ways to calculate this are average purchase value (APV) and customer lifetime value (CLV). If your customers tend to only buy once, or very sporadically, you can stick to APV. But if your customers tend to buy multiple times or pay via subscriptions, CLV may be a superior metric to use.
Determine sales cycle length: Another variable worth considering is how long it will take the marketing campaign to show results. If your product or service has a high price point, your sales cycle is likely considerably longer than, for example, an e-commerce clothing company. Alternatively, you may find that the sales cycle for leads you gain at tradeshows is usually much faster than those generated through digital channels (or vice versa).
In either case, take a look at your historical data to determine your sales cycle length before running ROI calculations. That way, you can be sure you’re giving your campaigns enough time to generate revenue before you measure them.
How to find the right ROI calculation for your needs
At face value, calculating ROI is simple: Just subtract marketing spend from revenue to determine your ROI figure, and then divide again by marketing spend for your ROI percentage. But depending on the specifics of the campaign, it’s important to make small tweaks to this formula for the sake of accuracy (and to prove you’re doing your job!).
1) Your campaign is optimized for one-off sales
In this situation, you can stick to the simple equation for ROI percentage:
ROI = (Revenue – Marketing Spend) / Marketing Spend
Example: You run a Facebook ad campaign promoting your new jewelry line. You earn $5000 in revenue and spent $2000 on the campaign. Your ROI is then (5,000 – 2,000) / 2,000, or 150 percent.
2) Your campaign is optimized for non-monetary conversions that will turn into recurring sales
Similarly to the situation above, you want to assess how much money you stand to make based on customer lifetime value, instead of just one-off revenue. First, find your customer acquisition cost:
Customer Acquisition Cost = Revenue / New Customers
Then, plug in numbers to this modified ROI equation:
ROI = (Customer Lifetime Value – Customer Acquisition Cost) / Customer Acquisition Cost
Example: You run a beauty products subscription service and conducted a direct mail campaign to get new subscribers. You spent $5,000 on the campaign materials, and earned 50 new subscribers as a result, making your customer acquisition cost (5,000/50), or $100. Your customer lifetime value is $200, so your ROI stands to be 100 percent.
3) Your campaign is optimized for non-monetary conversions that will turn into one-off sales
Here, you can still use the original ROI equation, but you need to determine both your estimated ROI per lead and your sales conversion rate. First, find your customer acquisition cost:
Customer Acquisition Cost = Revenue / Total leads
Then, find your ROI per lead:
ROI per lead = Average Purchase Value – Customer Acquisition cost
Next, determine your forecasted revenue based on your lead to customer conversion rate:
Forecasted revenue = (Total leads * Sales Conversion Rate) * ROI per lead
Now, plug these numbers back into the normal ROI formula:
ROI = (Forecasted Revenue – Marketing Spend) / Marketing Spend
Example: You sell MRI equipment to hospitals and purchase a booth and sponsorship at a large trade show where your goal is to generate leads. You spent $100,000 on the sponsorship and earned 200 leads, giving you a customer acquisition cost of $500. If your average purchase value is $250,000, you could expect an ROI per lead of (250,000-500), or $249,500. If your lead to customer conversion rate is 5 percent, then you can expect 10 of those 200 leads to become paying customers, earning you $249,925*10, or $2,495,000 in forecasted revenue. Since you spent $100,000, that leaves you with an ROI of .025 percent.
But what about attribution for multichannel campaigns?
As a marketer, you know that in general, no campaign or marketing tactic makes money by itself. When calculating ROI for a marketing campaign, it’s important to decide in advance how (or if) you will factor in other touchpoints, and how much credit you’d like to give to them.
For example, if you’re running a single-channel direct mail campaign targeted at people who are unfamiliar with your brand, you can feel pretty confident giving 100 percent attribution to that channel — especially if you use proper tracking methods. However, if you’re running a promotional campaign that spans direct mail, email, and Facebook ads, you’ll need to decide if you want to calculate ROI by overall campaign spend, and/or break it down by channel.
To a large degree, this decision will depend on your resources. A holistic look at marketing spend in a multichannel campaign would definitely be easiest, but you’ll lose out out on important information regarding which channels performed best within the campaign. Breaking down the campaign by channel offers better insight, but requires more effort and resources.
What’s a marketer to do? At a minimum, calculate your ROI based on overall marketing spend. Doing so at least allows you to answer the question your stakeholders want answered most: Did this campaign generate revenue? From there, you can select an attribution model that can help you determine which channels contributed most to your ROI.
For more tips on attribution for multichannel campaigns, check out this post on how to dissect a marketing touchpoint.
Calculating ROI on marketing campaigns doesn’t have to be difficult. With a little prep work, you can choose and equation that works best for your campaign goals and business model.
Want to know your ROI from phone call conversions? Learn more about how CallRail makes it happen.