Increasing Your ROI

September 14, 2018

Increasing Your ROI

Increasing Your ROI

There isn't one correct way for businesses to increase their return on investment (ROI). No matter what tactics you use (social media, content marketing, or old-fashioned cold calling), it's important to have a plan and a way to measure results. Here are some techniques suggested for increasing sales and marketing ROI.

Quantify Your Marketing ROI

Before you can add value to your ROI, you must develop a system to analyze the results. Creating the system may take some time but it is a great investment that will pay off in the long run. Focus on these three key areas:

  1. Break down results by channel. It is difficult to gauge the efficacy of your marketing tactics when you first deploy them. An accurate assessment is even more complicated when the amount of investment and the audience size for each channel differs. Use indicators like cost per sale (or per earned revenue) and conversion ratio to decide which channels are the better investments and tweak your budget accordingly.
  2. Analyze your email performance. Automated emails form the bridge between engagement and conversion for many businesses. The sending process might be automatic but you need to analyze the metrics yourself. Use opening rate, click rate, and bounce rate data from your mailers to tweak your content and mailing schedule for the best results.
  3. Track demand generation. Use the data from every program you employ to determine its individual contribution per dollar invested, its growth rate, conversion rate, and pipeline value per lead. Remember to account for growth over time if there are significant differences between how long you have used each one.

Incorporate Events into your Marketing Schedule

Use a calendar to mark the events on which you want to focus and create a campaign to precede each one. You will have to plan at least a fortnight in advance. Apart from advertising, a good content strategy can be very helpful in funneling your leads into purchasing decisions. Keep in mind that your products and services do not necessarily have to be related directly to the event. Sometimes, your audience is just looking for an excuse to purchase, not a reason. Give them one.

Improve Customer Satisfaction

More than ever before, people turn to reviews before they make a purchase. You, yourself have probably been turned off a purchase after reading a slew of negative reviews about a product or a service provider. Evaluate your support department and retrain them if required. Engage with old customers and offer special privileges and discounts, all of which you should advertise on social media. Encourage satisfied customers to leave a review if they have a great experience.

It is possible to circumvent customers from reading negative reviews about your business if they are already there. Reviews on most sites are arranged chronologically - if you wow everyone who buys from you today onwards, positive reviews can help bury the old ones.

The Time is Now

Increasing your ROI may seem like a mammoth task but it usually is not. By using the analytics tools at your disposal, tweaking your strategy, and proactively engaging customers, you can turn that sales plateau into a distant memory.

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