Apr 12, 2022
In General Discussions
As a marketing professional, it’s a question you’re used to hearing from your agency clients. They want to know that the money they’re investing into their marketing activities is paying off.Yet proving the worth of your agency’s work can be an uphill battle. In fact, 28% of small- to medium-sized businesses say they have no transparency in how their budgets are used by their agency partners. Even further, “generating a positive ROI” is at the very bottom of the list B2B Email List of reasons why businesses love working with external agencies.But demonstrating ROI for the marketing efforts you support for your clients doesn’t have to be a guessing game. By effectively tracking campaigns across different promotional channels, providing clear attribution with the right marketing tools, and managing performance expectations on a consistent basis with client check-ins, proving the value of a multichannel strategy will become second nature.callrail-call-tracking-softwareWhy Multichannel. Marketing Muddies the ROI WatersDemonstrating ROI isn’t a new or unfamiliar challenge for marketers, with 61% of marketing leaders admitting that they aren’t even confident in their own ROI data.Recently, though, the puzzle has become increasingly intricate as multichannel marketing continues to gain traction. While using a combination of communication and marketing channels is undeniably effective, it adds a new layer of complexity when it comes to proving ROI.Marketing Campaigns Are More Complex Than EverPreviously, many marketers and agencies relied on a “last click” attribution model, where the final, non-direct touchpoint with a customer is given the credit for the entire conversion.That doesn’t hold water in today’s multichannel landscape. Marketing messages are spread across numerous outlets and the customer journey is filled with varied interactions and exposures.A customer might see your client’s paid advertisement on Facebook and click through to the website. They might return a few days later through an Instagram post and opt-in for an email offer. They might finally take action a few days later after receiving an email nudge and pick up the phone to call for more information or to book an appointment or service.Why should that email announcement get all of the glory for that conversion when there were numerous other channels and marketing activities that pushed the customer over the finish line? That’s one of the biggest challenges of multichannel ROI: figuring out how to get multichannel attribution right.Customers Have More Options (And Flawed Memories)“How did you hear about us?” is a question that many businesses have defaulted to in order to understand where customers are coming from. However, when it comes to multichannel marketing, customers’ answers to that question can be misleading.Why? When a customer has several touchpoints with a business, they might not even remember how they first became aware of the brand. Was it the paid Google ad? Or did they stumble upon a blog post? Did a friend mention it? Which one actually came first?When asked, customers will likely give into the psychological concept of the “economy of effort,” meaning they opt for the easiest or most straightforward answer to save time and energy. That gives businesses and their agencies faulty data about how customers actually got there, which makes it that much tougher to prove ROI of various channels and even entire campaigns.