In recent years, our ability to analyze user behavior and determine how Facebook, SEO, email and other tactics affect the purchase decision has improved. However, the challenges of two-step distribution make determining ROI especially difficult for most building products manufacturers. It can seem impossible to account for all the variables that result in purchase when you have little insight at the dealer or contractor level.
With the exception of reduced visibility, the funnel isn’t much different than it is for other marketers. The challenge is connecting marketing metrics to sales metrics. At True, we use three tactics to bridge the gap.
You can start to bridge the marketing ROI gap by focusing on what can be quantified, rather than what can’t. When a direct connection can’t be made between marketing efforts and offline sales, an intermediate, online conversion can help connect the dots. Examples of these include:
Web experience planning is crucial at this point to figure out how users engage with your site and what they want to learn. Focus on finding one relevant, measurable action for each objective.
The calculation is simple:
Cost of the program / Non-sales marketing conversion = Cost per conversion
The first question at this point is always, “What’s a good cost per conversion?” The better question is, “What’s a profitable cost per conversion?” The building products industry has a wide range of price points for a unit or an entire job. The drywall for a new construction build may be roughly $500. New siding is likely to cost upwards of $10,000. The siding company can afford a much higher cost per conversion and still be profitable.
Simple calculations for online conversions are the next step toward demystifying ROI. Determining front-end marketing costs and outcomes based on online conversion points is easier.
In a two-step distribution model, it’s nearly impossible to track every sale at the end-user level. What’s important is identifying trends to learn how different audiences buy. Rather than track every sale, use trends and averages to start to unmask ROI. There are three pieces to uncovering these trends:
When you lose visibility at the point of sales, ROI is always going to be elusive, but we have the tools to audit our marketing efforts and track trends with sales.
Want more tips for unlocking ROI in the building products industry? Download our ebook “5 Tips for Unlocking ROI for Building Products Marketers”
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