One of the most powerful tools for business owners today is digital marketing. It allows you the option to interact with customers on a level you just can’t when it comes to other marketing strategies. More than that, it spreads your reach far and wide. It’s both affordable and measurable, making it an ideal choice for companies today.


Digital Marketing Mistakes Killing Your ROI

Sadly, not everything in the realm of digital marketing is instantly flawless. Instead, there are a variety of marketing mistakes that a digital marketing agency can do that can hurt your ROI.


If you’re new to the realm of digital marketing, one mistake an online marketing agency can make is a complete lack of flexibility. If something isn’t working as planned, it’s time to make a change, yet few marketing agencies today have invested in the tools essential to facilitate that shift. This can seriously impair your company’s ability to progress.

Ensure that the agency’s efforts adapt to the campaign’s requirements. What works well on Facebook may not work well on the blog, so while it may appear that you’re saving money by spreading material across two channels, the agency should be flexible enough to recognize when something isn’t working and how to fix it.

Poorly Collected Data, Analyzed Slowly

Will you be able to identify what isn’t working? When will you realize the problems? ROI is about the ability to quantify what is and is not working in any area, but it is especially simple in the world of digital marketing. The majority of your channels have already developed excellent solutions to assist you with your numbers.

From Google Analytics to Facebook Ads, a social media marketing agency can typically obtain the data you need to determine their strategy’s performance, and they can always make adjustments based on the data. Look for tools that can assist you in determining the size of the splash (or lack thereof) so that you can build a stronger campaign in the subsequent round.

social media marketing agency


Even if it works in marketing, if it does not work at your business, you have a problem. Aligning your digital marketing and inbound marketing efforts is critical, and failing to do so can quickly erode your ROI.

To avoid this problem, look for options that will enable you to track your campaign from start to finish. Determine what isn’t working for your leads and how to adjust your messaging to make it more effective across the board.

Damaging Follow-Up

There are various steps involved in the majority of digital marketing campaigns. It all starts with a sound marketing approach. It continues throughout the customer service experience, and for many businesses, this is the point at which failure occurs.

If a marketing agency cannot generate a lead during a marketing campaign and subsequently nurture it throughout the customer experience, you will not achieve the ROI you deserve.

Lack Of Customer Service

If you assume the process ends once a consumer makes a purchase, you may have just resolved one of your own ROI problems. Once a lead becomes a completed transaction, you have a great deal of data about that individual.

Convert the data into an enticing personalization strategy. The objective here is to retain them as customers, which frequently requires a detailed examination of the data on what first drew them in.

marketing agencies

Measure Digital Marketing ROI: 6 Metrics To Consider


Whether it’s form submissions, phone calls, content downloads, or email subscriptions, it’s critical to analyze the impact of your marketing on your conversions.

Setting up objectives in Google Analytics is rather straightforward and can provide you with excellent visibility into how your marketing is generating leads.

After you’ve configured your goals, you can review your conversion data in a variety of reports. You may view it by marketing channel or landing page, which enables you to determine which pages and channels are more effective for you.

Maintain monthly tracking of these numbers to get a sense of how many inquiries your sales team receives each month, quarter, and year.

Cost Per Lead

Now that you know how many conversions you’re receiving, you’re probably curious about their cost. If you’re spending money on pay-per-click advertising to generate leads, understanding your cost per lead is critical for determining whether your ads are effective.

If you spend $134 on paid advertising to generate four leads, your cost per lead will be $33. Naturally, you want to generate as many high-quality leads as possible at the lowest cost.

If you realize that your cost per lead exceeds its potential worth, you should examine your marketing campaigns. With marketing attribution, you can track the money generated by your leads as they close. You may also measure offline conversions, which means your CPL will decrease as you gain a full picture of the impact of your marketing on revenue generation.

This enables you to obtain an accurate cost per lead and a holistic perspective of your campaign.

Lead Close Rate

Now that you’ve determined how many leads you’re receiving and at what cost, How many of those leads translate to sales?

This information is likely to be stored in your CRM system, or you may need to obtain it from your sales team. Once you’ve done so, it operates as follows:

Multiply the amount of successful sales by the number of leads. As a result, you will have a closing ratio expressed as a percentage. If you have 50 sales leads and 10 closed sales, for example, the ratio is 10 divided by 50 multiplied by one 100, which equals 20%.

Understanding this measure enables you to quantify the revenue generation performance of your marketing campaigns. Of course, you may eliminate the manual work entirely and let marketing attribution perform the heavy lifting for you.

Lifetime Value

Lifetime value is a great metric to use to have a holistic understanding of your digital marketing ROI. Companies can determine how long it takes to repay the expenditure required to acquire a new customer by comparing customer lifetime value (or CLTV) to cost of customer acquisition (CAC).

CLTV is a dynamic indicator that indicates how much money you may anticipate from a single customer throughout the length of the relationship. The longer a customer remains a customer, the more valuable they become. As such, churn management should be integrated into your sales and marketing processes.

To determine CLTV, you must first find your average purchase value and then multiply it by your average frequency rate. Then, once you’ve determined the average customer longevity, multiply it by the customer value.

Cost Per Acquisition

Your cost per acquisition metric indicates the average cost of acquiring a new customer. Divide your overall marketing costs by the number of sales generated to determine your cost per acquisition. Understanding your CPA enables you to have a more accurate picture of your digital marketing ROI. If you’re spending more on acquisition than a customer generates, it’s time to rethink your marketing strategy and efforts.


To be clear, if you’re an eCommerce marketer, you may attribute income to marketing campaigns directly within Google Analytics, eliminating the requirement for a large number of the KPIs described above.

By comparing income to marketing channels and campaigns, you may rapidly evaluate which marketing channels and strategies are most effective at increasing sales.

However, what if you produce leads and pass them on to sales? Or if your sales cycles are typically lengthy, preventing you from gaining visibility into how users interact with various channels prior to converting?

Attribution marketing is a simple answer to these issues.

digital marketing agency

Protect Your Marketing ROI With A Watchdog

So now that we covered the ways in way a marketing team, agency, or vendor, can underperform, underdeliver, and in some cases bring you further from your goals, lets cover the solution.

Hire the right candidate each time. That’s it.

Agencies can be better at their sales pitch than delivering services, so that advice is easier said than done. What you can do is: Interview, Assess, Analyze, Compare all candidates.

But what do ask them? Your lack of experience and knowledge is exactly why you are hiring them in the first place.

Watchdog Business Tools has Scorecards for all the popular marketing channels, allowing you to do exactly what needs to be done to find and contract with the right marketing manager.

They work as easy as anything, and effectively too. All you do is sit down, video call, or email the questions to your candidate (or existing manager). With the results, you make objective decisions as to whether or not they can help your goals. Based on their scoring, you’ll be able to compare the interviewees and select the one that will help grow and scale your business.

Learn more about Watchdog Business Tools Scorecards.

Read our previous blog on how intellectual property works.