INBOX INSIGHTS, May 22, 2024: Measuring ROI in 2024, Instagram Brand Performance - Trust Insights Marketing Analytics Consulting

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

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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

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%.
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.
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.
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.
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

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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 »

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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:

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:

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.

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

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!

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