If you have been looking into changing up your digital marketing efforts, you will have come across ROI. ROI is often mentioned in relation to digital marketing and growing a business, as it’s a key way of determining if your tactics are working and if your budget is being spent wisely. In this blog, we have taken a look at some of the best digital marketing tactics for boosting your ROI.
What is ROI?
ROI stands for Return on Investment, and it’s a way to evaluate the profitability and efficiency of an investment, expressed as a percentage or ratio. Simply, ROI will let you know how much money you are making on an investment. In regards to business growth, ROI is often linked to the money that you’re putting into marketing or advertising. If something has a good ROI, it’s an investment worth continuing with. Once you know the ROI of an investment, you can make informed decisions about your future plans, and amend your strategies to make more money in the long run.
How is ROI Calculated?
Knowing the ROI is a key part of a successful digital marketing campaign, as it showcases how successful and effective your efforts have been. ROI Is calculated by looking at the difference between the profits made from the campaign and the money you spent on it. ROI is found using the formula “ROI = (Total Revenue – Marketing Investment) / Marketing Investment x 100” and it can be expressed as a ratio or percentage.
10 Digital Marketing Strategies to Boost Your ROI
- Review Your Digital Marketing Strategy – One of the best things that you can do to boost your ROI is to review your digital marketing strategy. Look at where you are spending your budget and which tactics are bringing in the most leads. By regularly reviewing your efforts, you can ensure that you are spending money on the most successful marketing techniques. You can also make sure that you are not wasting money on strategies that don’t bring in a profit.
- Embrace AI – AI can be a huge help when it comes to growing a business and boosting your ROI, even if it doesn’t impact ROI directly. By using AI to automate data analysis and various other manual tasks, you will have more time to focus on the tasks that will improve your ROI, without worrying about other processes falling behind.
- Automation Tools – Marketing automation tools are an effective way of streamlining your business processes and freeing up a lot of your time. These tools automate a range of tasks, including email campaigns, social media scheduling and CRM updates, all within a user friendly interface. By automating routine marketing tasks, you can claim back a lot of valuable time, allowing you to concentrate on other aspects of your digital marketing campaign.
- Use Data – Using data should always be a key part of optimising your marketing efforts. Looking at data from your various marketing campaigns allows you to identify trends, gain insights and pinpoint areas for improvement. By making decisions based on facts and figures, you have the ability to generate a better ROI without relying on guesswork.
- Focus on CLV – Customer Lifetime Value (CLV) looks at the total money made from a customer throughout their entire interaction with your business. By focusing on CLV, you can boost your ROI by considering the revenue generated per customer, and then reducing the money spent on finding new customers. It’s usually a lot more cost effective to increase your CLV, compared to finding brand new customers.
- Focus on Existing Customers – If you sell more to existing customers, you can boost your ROI without having to put as much money into engaging them. This can be done by upselling products or services, or encouraging them to shop with discounts and promos.
- Compare Marketing Channels – Not all of your marketing channels should be considered equal, which is why you should look at the ROI of each individual one. By doing so, you can put your time and money into the most profitable channels, knowing that doing so will help to grow your business.
- Cut Your Marketing Costs – There’s one obvious way to amplify your ROI and that’s to reduce your marketing costs. If you are spending less on your marketing, but you continue to bring in the same sales, your ROI will improve.
- Constantly Develop Your Skills – The world of digital marketing is always changing, and it’s important to stay up to date with the latest algorithms, trends and tactics. Take the time to upskill yourself and your team, ensuring that everyone knows the best marketing practices for maximum results. This could mean doing an online course or workshop, attending an industry event or connecting with digital marketing experts in your industry.
- Enlist Professional Help – One of the best things that you can do to boost your ROI and grow your business is enlist professional help. This is where Profici comes in. With a wealth of experience and an expert understanding of growing an online business, our talented digital marketing team is able to amplify your ROI. We know what works and we know what doesn’t, and we know the most effective digital marketing tactics to use in any industry. By handing everything over to us, you can relax, knowing that your business is in capable hands.
To find out more about growing your business, boosting your ROI and our digital marketing services, get in touch with our helpful team.
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