--- title: "Calculating the ROI of a successful digital marketing program" description: "Whether you are launching a new digital marketing program or reworking an old one, calculating the ROI of your marketing strategy" author: "Drishan Vig" published: 2022-08-29 canonical: https://yourviews.mindstick.com/view/83688/calculating-the-roi-of-a-successful-digital-marketing-program category: "digital marketing" tags: ["roi", "digital marketing program", "conversions", "engagements", "conversion rate optimization", "close rates", "customer lifetime value"] reading_time: 3 minutes --- # Calculating the ROI of a successful digital marketing program Whether you are launching a new **digital marketing program** or reworking an old one, calculating the **ROI of your** [**marketing strategy**](https://www.mindstick.com/blog/300035/a-working-digital-marketing-strategy)is an important part of your overall strategy. It's important to measure how well your efforts are paying off, and the **ROI of a** [**successful digital marketing**](https://www.mindstick.com/blog/11444/5-content-marketing-blunders-that-are-scaring-away-readers)program is not only a matter of revenue but also of customer lifetime value. The lifetime value of your customer is the number that tells you how much they spend over their lifetime. ## Boosting conversions on mobile devices **[Conversion rate optimization](https://www.mindstick.com/articles/12669/conversion-rate-optimization)** is an important part of any [digital marketing](https://www.mindstick.com/services/digital-marketing) program, and boosting conversions on mobile devices is no exception. Mobile users spend approximately 70% of their online time on their mobile devices. **[Conversion rates](https://www.mindstick.com/blog/12083/how-to-drive-conversion-rates)** are largely dependent on ease of use and mobile-friendly site design. According to eMarketer, the number of mobile-only users will rise to 55.7 million by 2022. Furthermore, over 79% of smartphone users have their mobile devices on hand [throughout the day](https://answers.mindstick.com/qa/35882/can-i-drink-warm-water-throughout-the-day-to-lose-weight). ## Measuring close rates **Measuring close rates** is a vital part of any successful digital marketing program. You can measure the rate at which leads become customers by adding up the number of closed leads generated during a certain period. This helps you determine the effectiveness of your digital **[marketing campaign](https://answers.mindstick.com/qa/34952/describe-your-most-successful-marketing-campaign)** and determine where to allocate the budget. It can also help you prove ROI. ## Measuring customer lifetime value - [**Measuring customer lifetime value**](https://neilpatel.com/blog/how-to-calculate-lifetime-value/) is an important part of a successful digital marketing program. By knowing how much each customer is worth to your business, you can adjust your marketing model to maximize your [return on investment](https://answers.mindstick.com/qa/105732/how-to-calculate-return-on-investment-roi). Once you have a clear idea of your customer lifetime value, you can bid more aggressively on [paid advertising](https://answers.mindstick.com/qa/105599/why-use-paid-advertising), build a more targeted audience, and scale your business more easily. - You can calculate the **lifetime value of each customer** by considering the amount they will spend over the course of their relationship with your company. This value is based on a number of factors, including the average order value, the frequency of purchases, and the gross margin. The longer your relationship with your customers, the higher your CLV. - **Measuring customer lifetime value** is critical for your business. Without it, you could end up wasting money on marketing. The **goal of a CLV** is to maximize your profits while minimizing costs. It also helps you focus your spending to attract the right type of customers. If you aren't able to **measure your CLV correctly**, you may be unknowingly overspending and losing money, or underspending and struggling to keep up with demand. - **Customer lifetime value** is one of the most important metrics for an online business. In today's marketplace, winning and retaining valuable customers is a costly endeavor. By focusing on these customers, you can increase your customer's lifetime value, attract better new customers, and prevent negative trends like customer churn. --- Original Source: https://yourviews.mindstick.com/view/83688/calculating-the-roi-of-a-successful-digital-marketing-program Copyright © MindStick Software Pvt. Ltd. This Markdown version is provided for developers, AI systems, and offline reading.