Marketing ROI: Tracking ROI to Earn More Revenue
The Problem
Business owners want to know there overall ROI and how much revenue each campaign is generating – but with the tools either they or their marketing agency use they can’t get this information.
Here’s why-
Most Everyone uses Google Analytics and/or Google Ads for reporting but the problem is both stop at Goals or Conversions and we all know that not all Goals are leads
Analytics “Goals” can’t distinguish between spam calls and legit phone leads nor can it distinguish between spam form submissions and legit ones. Because of this it’s hard to say that“Conversions” or “Goals” are actually in Analytics or Google Ads reports are actually leads.
Next we know that not all leads convert into clients and this has been a HUGE missing piece of the puzzle for a long time. The difference between converting 15% of leads into clients vs say 50% can be millions of dollars in revenue difference for even the smallest of local firms.
Finally – the last piece of the puzzle is we need to know the difference in revenue for each client. For instance a “Speeding Ticket” client for a law firm -might be a $500 in revenue – whereas a big PI Case could be worth be worth millions.
What About Google Analytics?
Neither Google Ads nor Google Analytics has a way to show the difference in not only leads – but clients. Just like not all leads are the same neither are all clients.
Knowing the difference in client revenue is important when optimizing a campaign. This is data that E-Commerce businesses have had for a little over 10 years now and allows them to be much more effective with their marketing. Let’s take a look at the difference.
E-Commerce businesses can see not only clicks and Goals/Conversion but also Sales and Revenue data. When say for instance a “$20 Dollar” widget is sold – this data is shown in Google analytics. Now compare that data to “Lead Generation” businesses have to work with… Not nearly the same.
Using Analytics we can see Spend, Clicks, and Goals/Conversion just like the ecommerce websites but the law firm in this example can’t see the data that matters. No actual Lead Data, Revenue Data or ROI Data – and this is a problem.
To Solve this problem we need to do two things.
- We need to track every lead and here’s how we do that.
Juvo Leads combines Dynamic Website Call Tracking with Native Form Tracking and Live Website Chat to capture and track every lead that comes in. While every Juvo Leads license includes Call Tracking and Form Tracking not every website chooses to use our live website chat.
2. Now we need to capture Clients, Revenue, and ROI information
Here’s how we do that.
Every time a Phone, Form, or Chat lead comes in, the business or firm gets an email notification. The person who receives the notification can then click the link in the email and see the full lead summary (as shown above). In the lead summary the user can take notes, review the lead information and most importantly set the status to “signed client” if the lead converts did in fact convert. Once a status is marked “Signed” (or any custom status the user creates) they can then add in the estimated client revenue.
This process is usually handled 1 of 2 ways:
- The business or firm owner enters lead data as the leads come in or at the end of each month.
- The marketing agency reviews each leads during their monthly review calls and enters the information during these calls.
There is no ‘Right’ way to do this and Juvo Leads is powerful even if a business or firm doesn’t set statuses or assigned estimated revenue – but the businesses that continually beat their competition are doing so by being more effective with their marketing spend.
By assigning statuses and adding estimated revenue to signed clients you will do 2 things:
- Improve ROI
- Increase Revenue
Case Study of Increased Revenue and ROI from Using Juvo Leads
Here’s an example of a law firm that did both by using Juvo Leads (actually it was their marketing agency that did this but same thing).
Here’s the Google Ads data for this PI firm. We can see spend, clicks, and “conversions” but that’s it.
Based on this data alone what changes would you make?
Are you looking at the “Goal Conversions” data and seeing 15 Conversions there so maybe you should reallocate budget to this campaign from the “Pedestrians” campaign? That would be right way to think about it – but here the data you get with Juvo Leads.
Do you see the important difference?
Of course I’m going to talk about it – but take a second a look. What campaigns looks best based on only “Goals Conversions” now what was the best campaign based on Juvo Leads data?
Do you realize how big of deal this is? The whole “Lead Generation” is doing it wrong and repeatedly making decisions with poor data.
Some marketing agenices we talked to didn’t like the idea for their clients to know ROI but event these could impress their clients with the new data they have access to.
Now let’s take a look at what changes this law firms agency made.
The agency reallocated the budget to two of the higher performing ROI campaigns and completely stopped the ‘Pedestrians” campaign.
Most importantly this agency bought in and stopped optimizing for ‘Leads’ and started optimizing for ‘Revenue’ and it paid off.
But it’s important to note – if the agency only looked at the “Clicks” and “Goal Conversions” which are both available in Google Ads they’d have made the wrong decisions. Clicks are down and “conversions” are down – but the most important number – REVENUE is up.
Let’s compare the two months
With the data from Juvo Leads – the marketing agency using the same Ad Spend were able to drive an additional $94,000 in Revenue and increase ROI from 14X to 29X.
Yes.
They doubled ROI.
If you’re an agency that wants to double your clients ROI or website owner that just wants to increase your revenue – sign up for a free 30 day trial. Sign up HERE.