📈 How to Calculate Financial Content Marketing ROI 💸
So you’ve seen a few case studies on effective content marketing.
And you wouldn’t say no to some of the well-known content marketing benefits:
- Becoming a thought leader in your space
- Free visitors to your website from Google
- More leads with your lead magnets
- Better quality leads
- Easier sales conversations
- A well nurtured client base
- And so on
However, being the wiley business owner that you are…
You’ll be asking the #1 question:
“What sort of return can I get on my content marketing strategy?”
Of course, all the metrics and benefits in the world don’t mean a thing if the strategy doesn’t drive revenue.
In this post I’m going to share a simple approach for understanding the revenue impact of an investment in content marketing.
- Your Ideal Client Journey and digital KPIs
- The really really easy growth formula
- Mapping out improvements in your KPIs
- Measuring the impact to your revenue
- How to develop a strategy to smash these growth goals
Your Ideal Client Journey and digital KPIs
Before we can dive into any formulas for growth, it’s important that you have a basic understanding of your Ideal Client Journey, as this makes it clear what your KPIs should be.
Here’s the Ideal Client Journey framework I use with all my clients:
This framework helps us map out the main stages of engagement a new prospect goes through on the path to becoming a happy client.
It lets us understand:
- What content topics we need for each stage
- Types and formats of content appropriate at each stage
- Technology requirements
- When manual sales should take over from automation
- What offers to make at each stage to move prospects through the sales funnel
- And so on
(If you’d like a more detailed briefing of how to plan out your Ideal Client Journey, take a look at my online course, Content Marketing for Financial Advice).
Now if we flip this Client Journey on it’s head, we have the more traditional sales funnel model:
Notice that while there are nuances at each stage of the Client Journey Stages we need to consider when we planning strategy, when it comes time to reporting on KPIs they roll up into the following 3 stages:
- Top of the Funnel: the amount of traffic
- Middle of the Funnel: the amount of leads
- Bottom of the Funnel: the amount of new clients
So for example:
- SEO targeted content marketing and paid traffic campaigns are aiming to increase the number of visitors you are getting in the Top of the Funnel.
- Lead magnet content and remarketing ad campaigns are aiming to increase the number of leads you get in the Middle of the Funnel.
- Lead nurture email campaigns and sales focused content are aiming to increase the number of sales you make in the Bottom of the Funnel.
Now you can see that different content marketing strategies can be deployed to achieve specific objectives:
- Increase Traffic: the number of visitors you get to your website or other digital platforms (i.e. social channels, YouTube channel, etc.)
- Increase the Visitor to Lead Conversion Rate %: how many visitors convert into leads
- Increase the Lead to Sale Conversion Rate %: how many leads convert into clients
Here’s how it maps out into a simple formula:
The really really easy growth formula
This formula is super simple, yet you can use it to plan your business growth based on any digital marketing activity:
Understanding your baseline performance:
The easiest way to understand your current baseline performance, is to look at a complete month and note:
- Traffic to your website: get this from the number of visits reported in Google Analytics
- Leads: make sure you’re tracking all lead conversions, from downloads of lead magnets, to direct enquiries, to phone calls
- New Clients
One you have these data points, you can reverse engineer your other KPIs:
- Visit to Lead Conversion Rate %: Leads / Visits
- Lead to Client Conversion Rate %: New Clients / Leads
Now you can plug all the numbers into the formula:
In this example, we’ve had:
- 1,000 visits to our website
- 40 leads
- Visit to Lead Conversion Rate of 4%
- 8 new clients
- Lead to Client Conversion Rate of 20%
Mapping out improvements in KPIs
With all your baseline numbers in place, we’re in a position to map out the impact of improvements in your KPIs.
Again, these are your main “levers” for improving overall results:
- Increase Traffic
- Increase Lead Conversion Rate %
- Increase Sales Conversion Rate %
Anything you do from a content marketing (or even digital marketing) perspective should be aimed at strengthening one of these KPIs.
Let’s have a look at an example.
In this example, we’re going to aim for a 25% increase in each of your KPIs.
The actual strategies you would use to high these targets will depend greatly on your current setup and strategies in play, how they’re performing, and your competitive environment. Needless to say, a 25% improvement is usually a very modest goal!
So what happens to your main KPIs with these 3 small increases?
Due to the the compounding effect of all three changes, you almost double the number of new clients coming into the business each month.
It’s for this reason, that a vital aspect of your content marketing strategy needs to consider the entire Ideal Client Journey.
Ok, so now you can see the uplift to leads and new clients, you might want to plot the business growth.
Measuring the impact to your revenue
Sweet, sweet ROI!
It’s what every business owner is really interested in.
So let’s now map out the revenue impact to these improvements in your KPIs.
To do that, we simply need to understand your Client Lifetime Value (LTV), considering both upfront setup fees and ongoing services.
For example, if you:
- Charge between $1,000 to $7,000 for an initial plan
- And between $1,500 to $7,500 per annum to manage the plan
- That might average out at $8,000/pa for the first year, then $4,500/pa for subsequent years
If a client stays with you on average for 5 years, they’re worth $26,000 over the lifetime.
Understanding this number lets you confidently invest in content marketing.
Want an easy to use, done-for-you Business Growth template?
The Business Growth Planner is exercise 4.1 in my Content Marketing for Financial Advice course, and helps you track your KPIs and plan your business growth using content marketing. Covering traffic, leads and client conversion rates, it allows you to project revenue growth based on increasing performance on your KPIs.
Bottom line impact:
In our above exercise, several 25% increases in the listed KPIs resulted in 15.6 monthly new clients (up from 8).
That represents an additional 7.6 monthly clients every month.
👉 7.6 additional new clients * a lifetime value of $26,000 = $197,600.
Which is additional new business revenue coming in each month based on the uplifts.
When you look at the numbers in black and white like this, it’s clear why so many companies are fighting to invest into content marketing and SEO.
How to develop a strategy to smash these growth goals
Naturally the next question to ask is:
“Which content marketing strategies should I use to hit these growth goals?”
The answer to that depends on a couple of key factors, explained in detail in my course, Content Marketing for Financial Advice:
Alternatively, if you’d like myself and my team to develop a content marketing strategy for your business, I’d like to invite you to apply for a free discovery call: