Do you know how to calculate your ROI and measure your ROI for each new campaign? If so, then that’s great! However, if you don’t, you’ll need to begin by using an ROI calculator which is easy to operate and can help you measure ROI in various campaigns by measuring cost per click, cost per lead, cost per acquisition – or all three! By measuring all three factors, you could receive detailed insights into your ROI. For example, you could learn that Google Adwords is best performing for cost per lead, but most of those leads rarely convert. Likewise, you may find that full page trade adverts cost the most, but perform the best.
Effective marketers continually revisit their content marketing strategies to find ways to improve. Here are three ways that you can maximise your ROI:
Step 1: Identify What Your Customers Want
It’s impossible to increase your ROI while trying to sell your customers something they don’t want. In order to identify what your customers really want, you’ll need to understand what they need and what they are expecting. The best way to do this is to identify your target audience. How old are they? What is their marital status? Do they have children? Which income bracket do they fall into? What is their socio economic background? All of these questions help you to define your target audience, which in turn helps you to develop buyer personas.
A buyer persona is a partially fictional representation of the individuals in your target audience based on real facts about existing clients, as well as market research. When you know your buyer personas, you know what your customers want. Other ways to learn more about your customers are to use use predictive analytics, surveys, journey maps and adaptive conjoint analysis. By learning about your customers through a multifaceted approach, you can get a holistic, unbiased and honest picture of who they are and what they want. Then, you can mould your services and products to fit your customers, instead of the other way around. This will guarantee more sales, which will also result in increased ROI.
Step 2: Analyse Your Marketing Performance
Any good marketer will be able to tell you how well their marketing campaigns perform across each channel. For example, direct mail is far more expensive than email marketing, but it can be more effective. Less marketers distribute direct mail, which has made it a novelty. Similarly, email marketing has become less effective due to the amount of promotional emails consumers receive daily. How can one email stand out when someone has an inbox full of hundreds of promotional emails?
To maximise ROI, brands need to optimise their marketing strategy by allocating their budget to channels that perform the best according to their internal KPIs. For example, if you were to reduce your direct mail budget by 20%, and invest this saving into digital marketing channels, would you see an increase in leads? The answer lies in the performance.
Step 3: Pay Per Customer Acquisition
If you were able to prove to your board how every cent in the marketing budget helped to directly acquire a customer, wouldn’t they be pleased? That’s the definition of return on investment! There’s no better way to improve your marketing ROI than by paying – and only paying – per customer acquisition.
It’s even better if you can show, for example, that this year’s $1 million budget directly acquired 1,000 high value customers with a net spend of $10 million, rather than last year’s $1 million budget which delivered thousands of clicks, Facebook followers and millions of page hits.
The main interest of business owners, directors and management tends to be whether or not your marketing campaign is delivering customers. By aligning your activities to this objective, you can reduce any marketing wastage while simultaneously maximising your ROI.
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