A customer lifecycle tool is a critical part of any digital marketer’s toolkit. The more you know about your customers’ journeys, the easier it will be to pinpoint their interests and trigger the right message at the right time.
You also want to be able to track the results of your various digital marketing campaigns. With so many moving parts, it’s easy for things to get messy. That’s why it’s important to have an effective tool to keep track of all this data. That’s where a ROI (return on investment) pie chart comes in.
The Anatomy of a ROI Pie Chart
A ROI pie chart is nothing more than a pie chart with one huge caveat: It doesn’t reveal the actual values of the individual pieces. That’s the role of a regular pie chart, which we’ll cover in more detail below.
The main goal of a ROI pie chart is to ensure that you are always comparing apples to apples. It ensures that the data is accurate and easily comparable because you’re using a single, standard unit of measurement.
To create an effective ROI pie chart, you will need to follow these steps:
Define Your Metrics
The first step is to define your metrics. You’ll need to decide what you’ll use to measure the success of your digital marketing campaign. The main criteria will be how much money you spent on the campaign and how many leads you generated. You can also add some other key performance indicators (KPIs) such as the number of downloads or orders for a specific product.
If you decide that conversions are the best way to go, you can measure the success of your campaign by looking at the number of customers who completed a purchase after clicking on one of your affiliate links. Alternatively, if you decide that people who spend more time on your site are more valuable, you can measure the effectiveness of your campaign by looking at the number of pageviews.
Create a Single Unit of Measurement
A unit of measurement is a standard way of comparing the results of one experiment to another. For example, if you’re running a Facebook advertising campaign and you want to see how effective it is, you can compare the results of the campaign to those of another, similar campaign that you ran last year. The only way to make these kinds of comparisons is to use the same unit of measurement.
To create a single unit of measurement for your ROI pie chart, you will need to decide on a specific metric for each of the four quadrants. This will be the most complicated part of your process, but once you’ve got it down, everything else will be easier.
Create Grand Totals for Each Category
Once you’ve got your unit of measurement established, you can move on to the next step which is to create grand totals for each category. There are a few different ways of doing this, but the easiest and the most common method is to add up all the individual cell values in each column and then translate that total into a single number that represents the whole column.
If, for example, you’ve decided that pageviews are the best way to measure the effectiveness of your website, you can take the number of pageviews for each individual category and add them together to get a grand total for the entire column. You can then do the same for the other three categories to create a complete view of the data.
Determine the Cut-off Levels
The last step is to determine the cut-off levels for each category. These are the values that will determine how much each piece contributes to the overall pie chart. For example, you might decide that anything under 10,000 pageviews per month will make up 25% of the pie chart, 10,000 to 20,000 pageviews per month will make up 50% of the pie chart, and anything over 20,000 pageviews per month will make up the remaining 25% of the pie chart. In this case, the fourth and the third quadrants would be fairly equivalent, contributing 25% each to the grand total.
With these steps in mind, you can begin to put together an effective ROI pie chart for your digital marketing campaign. Having a clear idea of the metrics you’ll use to measure the success of your campaign will help you make more effective decisions about your digital marketing efforts. From there, the rest is simply updating your stats and charts often to track your progress and make improvements as you go.