Measuring ROI Leads to Success
First off, return on investment (ROI) is different for every business! Knowing what that looks like for your business can be the key to a successful marketing campaign.
So, what is ROI? Typically, ROI is directly related to sales and making sure you are profiting more than you are spending with your marketing budget. That part is simple, but everything leading up to that will take some thinking.
Conversions are geared toward getting a consumer to perform a desired action; more importantly, getting them to respond to “your” call-to-action. These conversions can be your ROI or are what will help you reach your ROI goals. A conversion can be a click to your website, phone call, walk in your door, interaction on social media, form submission and so much more.
To get conversions you must know your audience, when and how to reach them, and what message will speak to them. From here, what marketing channels are you using to place your message to ultimately get a conversion? There are all forms of traditional advertising and digital advertising to get your message out there, so knowing where to reach your audience with your business’ budget can be tricky.
Lastly, if you don’t have a system in place to track these conversions and sales how do you expect to see ROI and justify it? There are tons of digital tools and analytics in the world that can be very useful. Much of these tools are free to use, however, understanding what you are doing and looking at is a skill in itself. Once you have a good system in place, monitoring and optimizing this process will allow you to increase your bottom dollar and even justify increasing your marketing budget to bring in more.
Business Development Director