Businesses that blog get 67% more leads than those that do not.
Needless to say, creating content for your business can provide a return on the time you put in. But really, what return is that? We talk a lot about how blogging is so important and how SEO matters… but does it?
To understand that, you need to know how to calculate the ROI on your blog posts.
Return on Investment (ROI) is a performance measure used to evaluate the efficiency of an investment or compare the efficiency of a number of different investments. ROI tries to directly measure the amount of return on a particular investment, relative to the investment’s cost. It is important as a business owner to understand how to calculate ROI in order to understand the success of your company and its financials.
Track your time
When it comes to creating content, the biggest investment will be time. Whether it’s your time, or an interns, the cost of blogging will be the cost of the time it takes to write.
Therefore, the best place to start when determining ROI is to calculate the time you want to spend on your blog. If it’s one post a week you are probably spending 2-3 hours on it. Any more and the time investment could go up, so be sure to keep track!
From there, estimate how much it costs you/your business. How much money is spent on those two hours? Do you use any additional software or services? Getting a sense of investment gives you an estimate as to how good of a return you get.
Measure your stats
Start tracking how your posts are performing!
Get a sense of what content works, and what doesn’t. If your blog posts are not getting many views or shares perhaps they’re not engaging/you need to work on your titles. If the posts have a high bounce rate (the rate at which visitors get on the page and leave without clicking through to your site) the content may not be engaging or resonating with your prospects.
Free tools like Google Analytics allow you to track your site’s performance along with all these metrics (and way more) so you can see what content is working for your site.
Convert visitors to leads
A blog post is nothing without a call to action to convert visitors into leads.
Whether it’s a signup form for your blog, a free trial/demo, or an ebook – give something to your visitors that keeps them in your system via a CTA at the end of the post.
A CTA is a call to action which refers to any device designed to prompt an immediate response or encourage an immediate sale. A CTA can allow you to be able to see how many leads you get and whether or not those leads eventually leave to long term customers.
So how do I calculate ROI?
The formula is pretty standard:
Calculate the ROI from there: [((number of leads * lead-to-customer rate * average sales price) – cost of publishing or ad spend) / cost of publishing ad spend] * 100.
So, suppose we spend 10 hours a month blogging and that equates to a $150 time investment. We also spend $100 promoting the blog posts for the month.
This gives us an investment of $250, suppose we get 3 leads, and 1 customer from those leads. We are a software company and our base subscription runs at $50/month so the return on a customer (for one year) is $600.
That gives us ((3 * .333 * 600 – 250) / 250) * 100 = 140%!
Try this out with your team – get a sense of what your time investment is among other costs, and take a close look at what leads are coming from the content you create. Don’t forget to track your metrics and use helpful CTAs to convert readers into customers.
Blogging still sounds like a lot of work though – fortunately there’s a way you can reduce the time spent on blogging and improve that ROI metric.
With Centori, you can find content relevant to your website and industry, schedule it across your team, and report on which pieces of content perform the best so you can leverage the work your team is doing. You can do it all on our Free version as well: