One goal businesses strive to improve year-over-year is marketing return on investment (ROI). To help improve ROI, businesses can outline, define, prioritize and monitor their campaigns to determine the direct effects of each tactic. However, there are several factors that can directly affect ROI. Here are five factors that can help determine return on investment and how each aspect can help improve overall marketing ROI.
Defining the ways in which a business can potentially benefit from investments is typically an important step in calculating ROI. Examples of returns can include:
Once the form of return is clearly identified, businesses can more accurately outline their initiatives and goals while simultaneously developing benchmarks to measure successes.
Through retargeting, businesses can capitalize on re-capturing the attention of their audience by repetitively promoting their ads throughout the user’s path. The consistency and reoccurrence of a company’s message may be more likely to engage and convert users into real customers.
Testing allows businesses to discover opportunities to improve their overall marketing ROI. To help increase the response rates of potential customers, business can test aspects of their marketing campaigns, one element at a time, to determine what’s successful and what needs improvement.
Some common testing elements can include a campaign opening statement or headline, or a campaign’s overall pricing and offer. As elements are tested and proven successful or unsuccessful, businesses can improve the effectiveness of future marketing and campaigns and possibly generate a higher investment return.
The process of measuring, testing and improving marketing efforts is often a driving force behind increasing marketing ROI. Here are five key aspects that can help ensure the improvement process remains steady.
One of the most powerful ways to improve marketing ROI is typically through the use of data analytics. For example, Google Analytics is one tool that allows businesses to gain access to information about their website visitors, including how long each visitor spends on the website and how they arrived there. Using this online tool can help businesses understand campaign performance and user behaviors. It may also help more accurately define how businesses can move forward with their marketing efforts.
Through the use of these five tactics, business can gain a better understanding of their customers and their business, and also learn how to improve their overall marketing efforts.