ROI, or return on investment, is an important metric for your digital marketing campaign. Setting an ROI objective and tracking its progress helps roofing companies avoid the common pitfalls of agency metrics like website traffic and click-through rate.
Most marketing agencies deliver reports based on vanity metrics like website traffic and ad impressions, which are driven primarily by generalized content that fails to convert visitors into leads or customers. By directly measuring ROI, roofing businesses can ensure they receive the most possible marketing value.
Measuring ROI for Roofing Companies
Your company’s ROI is measured by subtracting the money you spent from the money you earned. For example, if a marketing campaign costs you $100, but you made a total of $400 in lead calls, then the ROI for this ad is $300.
Keeping track of your roofing company’s ROI is crucial to ensure your marketing efforts are effective and cost-efficient.
What is a Good Marketing ROI for Roofers?
A good marketing ROI for your roofing company is anywhere from 3:1 to 5:1. Ratios are effective forms of ROI measurement because they simplify the calculation and are easy to apply across various channels.
In other words, for every dollar you spend on internet marketing, you should receive a return of three to five dollars.
A 10:1 ratio would be considered elite and something you’d have to work hard to sustain.
Qualities of a Good ROI
In addition to a benchmark numerical value, your ROI must possess these qualities:
- Diverse: The goal is to have multiple streams of profit
- Measurable: While some guesswork is expected, a close estimation is ideal
- Profitable: Earns your company a profit when all expenses are accounted for
- Sustainable: Influenced by a long-term strategy
Increase Your Marketing Campaign’s ROI
Low ROIs for roofing companies are typically the result of overspending on paid media, particularly Google Ads PPC campaigns. Failing to invest in organic lead generation channels, like search engine optimization, is the primary culprit of low returns on investment.
Another factor to consider is the conversion rate. If your website attracts relevant visitors but does not generate leads, it could be due to a poor user experience and ineffective calls to action. At Roofing Webmasters, our suite of services includes conversion rate optimization to maximize ROI.
Contact our agency today to discuss how we’ve consistently increased our roofing clients’ ROIs over the past decade.
