When you think about going digital, one of the first questions you should ask is: What is the ROI?
When it comes to the ROI of digital, it goes above and beyond just numbers as digital marketing tools give you more insight into what is working and how effective a campaign or tactic has been.
Let’s play a hypothetical game:
Consider this: You sent out a brochure to all the people in your database regarding a new listing. You chose that thick, glossy paper, hired a professional photographer and the brochure looks great. It has you and your contact details front and center and you are excited to send it out. Then you wait to get a call- this is a passive endeavor.
You don’t know whether the receiver checked your lovely brochure, you don’t know if they showed it to their spouse or friends, you don’t know if they liked it or if they threw it away.
Now think of how much it cost you to do this. Write down the number.
Consider this instead: You run an ad on Facebook for the same listing and target your database and those in your neighborhood. The pictures look great so you are getting likes. You know that Sarah J, a loan officer you worked with a few years ago liked the post, this is probably a good time to renew the acquaintance. You see that Matt D tagged his wife on the post and said that they should check it out. They might be in the market for a new home, you should probably reach out and ask if they would like to schedule a showing. You also got a bunch of likes from new people who were not in your system, new people you can now add to your database.
And you can do this for as little as $15.
Here, you are not waiting to be called, you are in control of your own business- it is an active endeavor.
Now compare this to the number you wrote down earlier. Which of these methods was more effective? Which one gave you more information about how your message was received? And which was cheaper?
One of the advantages of going digital is that attribution is made easy. You know exactly which campaign or message has performed well and this informs your marketing budget, allowing you to divert funds to areas that need it. It also helps identify which social media platform works best for you and your brand. You will get more bang for your buck and your marketing decisions will be backed up by data.
There are many metrics that you can harness to answer the ROI question.
Here are some of the data points you can use:
Reach: This data point shows you the number of people you have reached with your post. There can be both organic and paid reach. If your content is relevant and has gotten great engagement, Facebook will show it to more people and your organic reach (free reach) will increase.
Cost Per Click: This metric is a reflection of how relevant your content is and whether your audience found it helpful/interesting. The lower this number is, the better. It includes all clicks on the post. In 2017, the Cost per click for Facebook ads on real estate was $1.81. The average cost per click on WikiRealty ads is $0.11.
Click Through Rate: This data point comes into play if your post is clickable and opens a new tab on the browser. It tells you how many of the people who clicked on the post stayed on until the page loaded. This shows high intent. In 2017, the click-through rate for ads on real estate was 0.9%. The click-through rate on ads that WikiRealty does for subscribers is 5.6%.
Conversion: If you choose to set up a conversion event on your post, you will be able to track when people take that specific action. Conversion events can be clicks on the post, filling a form, calling or messaging and more. When someone who sees your ad takes an action that you have identified as a conversion event, it will be tracked and this will help in attribution and calculating ROI.
There are a number of other metrics but these are some important ones you should know and use.
At WikiRealty, we provide our subscribers with a dashboard that highlights all of these important metrics so that they can make an informed decision. We also provide them with personalized, in-depth analysis reports each month that breakdown how their account performed during the period. This means that you don’t have to hire an assistant to pull data for you or make excel sheets.