The goal of any business is to be profitable, and this can only happen when you make smart purchases with product investments, you control your overhead costs, and you have a loyal customer base. Your marketing strategies play a huge part in developing product or company awareness, and the money you spend to make the magic should be paying you back in some form or another, but particularly through increased sales.
This return on investment, or ROI, happens when you decrease your costs and increase your income. A positive ROI is when you more than a dollar for every dollar that you have spent to make the sale, produce the product, or serve the customer. If your ROI is high, the faster you achieve positive growth and profitability. However, many small business owners fail to calculate their ROI, which can jeopardize the company budget. If you are this owner, you need to take some time to read through these tips for the best ways to improve your marketing ROI.
1. Focus on Increasing Your Income
Even though you can decrease your expenses and operating costs, a more positive way to achieve a healthy ROI is by increasing your income. This the overall potential for growth. You should actively seek out a new way to invest time and money into systems that are profitable. The initial investment might seem steep, but the goal should be a long-term improvement in sales. As the profitable and successful Mark Cuban says, “Sales Cure All. Know how your company will make money and how you will actually make sales.”
2. Capitalize on Powerful Metrics
Using analytics can reveal the details of your business that you might have overlooked. By pinpointing the most successful campaigns or areas of your business, you can tweak your message or approach in the future. Try to use a unique URL whenever you launch a promotion channel and track clicks for the best information on the origin of user traffic. If you have the skillset, you can use Google Analytics for help with this. As you grow more confident with the process and the data, you will be able to optimize the metrics that have shown the best potential and matter the most.
3. Consider a Price Hike
While it sounds crazy and almost off-putting for new customer growth, the thought of raising prices places pressure on the company for creating or delivering a high-quality product that justifies the raise. In doing so, it helps a company more quickly raise the capital it needs to grow. Customers won’t complain if they feel like they are getting what they paid for.
4. Implement Automation
Automation is one way to decrease operating costs while increasing efficiency. Using zonal ocr software, for example, can help do the heavy lifting when it comes to paperwork and documentation, while other services can provide tools for scheduling social media posts or automated emails. The software can help reduce human errors, but it also reduces labour costs. With remote connectivity through mobile apps, it is also easier to stay on top of the data and can have the report issued at the push of a button.
5. Get Creative
If you want your marketing efforts to stand out from the rest of the pack, don’t rely on emails alone. Research shows that the average consumer receives over 80 emails a day. By embedding a video within your content, you can improve your conversion numbers by almost 20%. Use social media networks to reach your intended market, as these resources are both cost-effective and a prime application constantly accessed by a growing majority of consumers.
The Bottom Line
There are a lot of tools that can help you build your business through marketing, but before putting a plan together, you need to check on your ROI numbers. You need to know where your current finances stand and what it will take to be profitable. Having these goals will help you know how much you can spend and how much you need to bring in for the ROI to swing in your favour.
Also published on Medium.