INBOX INSIGHTS, May 22, 2024: Measuring ROI in 2024, Instagram Brand Performance

INBOX INSIGHTS: Measuring ROI in 2024, Instagram Brand Performance (5/22) :: View in browser

Inbox Insights from Trust Insights

👉 Download our Generative AI Power Pack of Cheat Sheets!

Measuring ROI in 2024

I thought I’d try an experiment this week. We’ve spent time internally building custom models for various purposes. I was curious how close to a polished post I could get by using a couple of them together. Here’s what I did:

We’ve built our Ideal Customer Profile model, which includes data around pain points and goals. I asked that model to give me a list of topics our ICP would want to read more about. After some iterating, the strongest topic measuring ROI. Great, now I know what content to put together.

Next, I took that topic and opened up KatieGPT. This is the custom model we’ve built a few months ago based on my knowledge and content. KatieGPT is my digital doppelganger. I asked KatieGPT to write a post about measuring ROI in 2024 using the 5P Framework.

My question to you is: how did the systems do? If I hadn’t told you that I didn’t write this, would you know? I’d love your feedback.

Here are the AI-written results:

Measuring ROI in 2024: A Practical Guide Using the 5P Framework

Introduction

As we navigate the complexities of marketing in 2024, understanding your return on investment (ROI) is crucial. With new tools, privacy regulations, and evolving consumer behaviors, the 5P framework—Purpose, People, Process, Platform, and Performance—provides a structured approach to effectively measure and optimize your ROI.

Purpose: Define Your Goals

Start with a clear understanding of what you aim to achieve. Your goals will guide which metrics to track and how to measure success. Consider:

  • Sales Growth: Target metrics like revenue, average order value, and conversion rates. For example, set a goal to increase online sales by 20% over the next quarter.
  • Website Traffic: Focus on page views, unique visitors, and bounce rates. You might aim to boost website traffic by 30% through improved SEO and content marketing strategies.
  • Customer Engagement: Measure social media interactions, email open rates, and time on site. Set a goal to increase social media engagement by 25% through targeted campaigns and interactive content.

Clearly defining these goals ensures everyone is on the same page and that the metrics you track are aligned with your business objectives.

People: Identify Key Stakeholders

Identify who needs to be involved in your ROI measurement process. Include team members from different departments to ensure comprehensive data collection and analysis. Collaboration is key:

  • Marketing Team: For campaign insights and execution. They can provide data on campaign performance and audience behavior.
  • Sales Team: To correlate marketing efforts with sales outcomes. They offer insights on how marketing leads convert into sales.
  • Data Analysts: To manage data collection, integration, and analysis. They can ensure the accuracy and relevance of the data being used.
  • IT and Compliance: To ensure data privacy and security. They ensure all data collection practices comply with the latest regulations and standards.

Engaging all relevant stakeholders from the beginning ensures a holistic approach and that all perspectives are considered in the ROI measurement process.

Process: Establish Robust Tracking Systems

Implement processes that enable accurate data tracking across all marketing channels. This includes:

  • Multi-Channel Tracking: Integrate data from Google Analytics 4 (GA4), CRM systems, social media analytics, and email marketing tools. For instance, set up GA4 to track user interactions on your website and use a CRM to track lead progression.
  • Data Governance: Ensure data integrity and compliance with privacy regulations. Establish protocols for data handling, storage, and sharing to prevent data breaches and maintain user trust.
  • Regular Audits: Conduct frequent reviews to keep your data and processes up to date. Schedule quarterly audits to check the accuracy of your data and the effectiveness of your processes.

A well-established process ensures consistency and reliability in your data, which is critical for accurate ROI measurement.

Platform: Choose the Right Tools

Select platforms and tools that will help you gather, analyze, and visualize data effectively. Key considerations include:

  • Google Analytics 4 (GA4): For comprehensive web and app tracking. Use GA4 to track user behavior, conversion paths, and attribution.
  • CRM Systems: For tracking customer interactions and sales data. Tools like Salesforce or HubSpot can help manage and analyze customer data.
  • Social Media Analytics: To measure engagement and performance on social platforms. Use tools like Hootsuite or Sprout Social to track social media metrics.
  • Marketing Automation Tools: For tracking email campaigns and customer journeys. Platforms like Mailchimp or Marketo can automate and analyze email marketing efforts.

Choosing the right tools ensures that you’ve got the necessary capabilities to track, analyze, and report on your marketing activities.

Performance: Measure and Optimize

Focus on performance metrics that align with your goals and provide actionable insights:

  • ROI Calculation: Use the formula (Net Profit / Cost of Investment) x 100 to determine your return. For example, if your campaign generated $50,000 in revenue with a $10,000 investment, your ROI would be 400%.
  • Predictive Analytics: Employ machine learning tools to forecast trends and optimize future campaigns. Tools like IBM Watson or Google Cloud AI can help predict customer behavior and campaign outcomes.
  • Marketing Mix Modeling (MMM): Analyze how different marketing channels contribute to overall performance. MMM can help identify which channels are most effective and where to allocate your budget for maximum impact. Applying the 5P Framework to Measure ROI
  1. Purpose: Set specific goals such as increasing online sales by 20% over the next quarter, improving website traffic by 30%, and boosting social media engagement by 25%.

  2. People: Involve your marketing, sales, data analytics, and IT teams to ensure all aspects of your campaign are tracked and analyzed. Ensure each team understands their role and the importance of their contributions.

  3. Process: Establish robust tracking systems to monitor user interactions from the first touchpoint to the final sale. Conduct regular audits to ensure data accuracy and compliance.

  4. Platform: Utilize GA4 to track web traffic, your CRM to monitor sales data, and social media analytics tools to measure engagement. Ensure seamless integration across these platforms for a comprehensive view.

  5. Performance: Calculate your ROI using the (Net Profit / Cost of Investment) x 100 formula. Use predictive analytics to forecast future performance and adjust strategies accordingly. Leverage MMM to optimize your marketing mix.

Conclusion

Using the 5P framework—Purpose, People, Process, Platform, and Performance—you can effectively measure and optimize your ROI in 2024. This structured approach ensures that all aspects of your marketing efforts are aligned, tracked, and analyzed, providing you with actionable insights to drive success.

What challenges have you faced in measuring ROI? Reply to this email to tell me or come join the conversation in our Free Slack Group, Analytics for Marketers.

– Katie Robbert, CEO

Share With A Colleague

Do you have a colleague or friend who needs this newsletter? Send them this link to help them get their own copy:

https://www.trustinsights.ai/newsletter

Binge Watch and Listen

In this episode of In-Ear Insights, the Trust Insights podcast, Katie and Chris discuss using Agile principles for prompt engineering. You will learn the importance of process development and project management when working with large language models (LLMs) like ChatGPT. Discover how to use the 5 P’s framework and the RACE framework to create effective prompts and streamline your workflow. Finally, understand why documentation and planning are essential for scaling your use of prompts across your organization.

Watch/listen to this episode of In-Ear Insights here »

Last time on So What? The Marketing Analytics and Insights Livestream, we walked through building a sponsorship kit. Catch the episode replay here!

On this week’s So What? The Marketing Analytics and Insights Live show, we’ll be digging into analytics for sales. Are you following our YouTube channel? If not, click/tap here to follow us!

In Case You Missed It

Here’s some of our content from recent days that you might have missed. If you read something and enjoy it, please share it with a friend or colleague!

Paid Training Classes

Take your skills to the next level with our premium courses.

Free Training Classes

Get skilled up with an assortment of our free, on-demand classes.

Data Diaries: Interesting Data We Found

In this week’s Data Diaries, let’s revisit Instagram metrics. This series will be coming to an end in the middle of this year as Meta retires the data collection software that provides it, Crowdtangle. But until then, let’s see how things look.

This week, we’ll examine how brands have been doing on Instagram:

Brand performance overall

What we see broadly as we look at the last 2 years of brand performance is a roller coaster ride of sorts. At the beginning of 2023, brands had an average engagement rate of 0.19%; today, that’s around 0.12% as engagement ebbs and flows over the last 17 months.

That’s… not great. For context, a 0.12% engagement rate means 12 out of every 10,000 followers engages with a brand’s content.

When we dig into the specific media types that generate engagement, we see something unusual beginning in mid-2023 and carrying into 2024:

Brand engagement by media type

What we see are more and more video spikes. Video still has the lowest median engagement rate of the three different formats, but it’s getting more volatile over time; the likelihood that videos will break out and see abnormally high engagements is getting more frequent.

This begs the important question: why?

In a recent post by Instagram head Adam Mosseri, Meta announced that they’re continuing to make changes to the algorithm. One of the key changes they’ve made over the last year is to make the algorithm more TikTok-like. What does that mean? It means that less emphasis is placed on the account and more emphasis is placed on the topic of the post.

That means that even a small account can see runaway success on a single piece of content if it has the correct signals indicating it will spread well and be engaging to the audience. It also means the algorithm is less dependent on account size and follower size.

That’s a double edged sword for marketers. On the one hand, it alleviates the pressure to accrue followers for sake of having bigger numbers. In today’s Instagram algorithm, that’s less of a boon than it used to be. On the other hand, it increases the pressure to generate hits, to make every piece of content a grand slam. It requires rethinking the general strategy of posting for the sake of posting or posting low value content just to have something there, and instead making something that will take off. That requires much more effort, focus, cost, and creativity.

As we see the rise of generative AI and the tsunami of low effort content increase, quality of content will continue to matter more and more if we want the AI algorithms that power social networks to boost our efforts.

Trust Insights In Action

Job Openings

Here’s a roundup of who’s hiring, based on positions shared in the Analytics for Marketers Slack group and other communities.

Join the Slack Group

Are you a member of our free Slack group, Analytics for Marketers? Join 3000+ like-minded marketers who care about data and measuring their success. Membership is free – join today. Members also receive sneak peeks of upcoming data, credible third-party studies we find and like, and much more. Join today!

Blatant Advertisement

Imagine a world where your marketing strategies are supercharged by the most cutting-edge technology available – Generative AI. Generative AI has the potential to save you incredible amounts of time and money, and you have the opportunity to be at the forefront. Get up to speed on using generative AI in your business in a thoughtful way with our new offering, Generative AI for Marketers, which comes in two flavors, workshops and a course.

Workshops: Offer the Generative AI for Marketers half and full day workshops at your company. These hands-on sessions are packed with exercises, resources and practical tips that you can implement immediately.

👉 Click/tap here to book a workshop

Course: We’ve turned our most popular full-day workshop into a self-paced course, available now and updated as of April 2024!

👉 Click/tap here to register for the course

Interested in sponsoring INBOX INSIGHTS? Contact us for sponsorship options to reach over 26,000 analytically-minded marketers and business professionals every week.

Upcoming Events

Where can you find Trust Insights face-to-face?

  • Society for Marketing Professional Services, Los Angeles, May 2024
  • MAICON, Cleveland, September 2024
  • TraceOne, Miami, September 2024
  • MarketingProfs B2B Forum, Boston, November 2024

Going to a conference we should know about? Reach out!

Want some private training at your company? Ask us!

Stay In Touch, Okay?

First and most obvious – if you want to talk to us about something specific, especially something we can help with, hit up our contact form.

Where do you spend your time online? Chances are, we’re there too, and would enjoy sharing with you. Here’s where we are – see you there?

Featured Partners and Affiliates

Our Featured Partners are companies we work with and promote because we love their stuff. If you’ve ever wondered how we do what we do behind the scenes, chances are we use the tools and skills of one of our partners to do it.

Read our disclosures statement for more details, but we’re also compensated by our partners if you buy something through us.

Legal Disclosures And Such

Some events and partners have purchased sponsorships in this newsletter and as a result, Trust Insights receives financial compensation for promoting them. Read our full disclosures statement on our website.

Conclusion: Thanks for Reading

Thanks for subscribing and supporting us. Let us know if you want to see something different or have any feedback for us!


Need help with your marketing AI and analytics?

You might also enjoy:

Get unique data, analysis, and perspectives on analytics, insights, machine learning, marketing, and AI in the weekly Trust Insights newsletter, INBOX INSIGHTS. Subscribe now for free; new issues every Wednesday!

Click here to subscribe now »

Want to learn more about data, analytics, and insights? Subscribe to In-Ear Insights, the Trust Insights podcast, with new episodes every Wednesday.

Leave a Reply

Your email address will not be published. Required fields are marked *

Pin It on Pinterest

Share This