How To Increase ROI In Your Marketing

ROI, Return on Investments, a way to measure the profits or losses resulting from a company’s efforts, in other way, it is the amount a company spends on marketing. However, marketing is necessary in every company to reach customers and attract them. Thus, ROI is also named MROI, Return on Marketing Investment, to understand results your investment has earned.

How To Calculate ROI

To find this value associated to your company’s marketing efforts, you have to do some simple math.

ROI= (incremental value produced by marketing efforts – cost of marketing efforts) / cost of marketing efforts ×100

With:

 • incremental value produced by marketing efforts = Sales Growth = Profits. It’s refers to growth and profit attributed to your marketing efforts. For example, how much a way such as channels and tactic helped to increase in sales  

•Costs of marketing efforts = Costs. It’s include the costs or expenses made by the company to market and sell its products, develop, increase and expand its brand and its digital marketing.

The results of this formula will be positive or negative one. If the ROI was positive, that means that you have positive returns, considered as profitable. But, having a negative ROI means that you’re having bad results and the total revenue matched the expenses.

Increase ROI

Using mathematics equations and referring to the flexible formula to calculate ROI, to increase marketing ROI, you have to either increase your Profits (income and growth) or reduce your costs.

Increase Profits

1-Set a Clear ROI Goal

Set and Specify your ROI goal. By doing this, you will have a clear goal to reach and realize. Thus, you can now determine your business plan and strategy to start your investment. Every goal in life needs to be identified, So what do you say about a Good Digital Marketing Investment?
Once that you choose your goal, it have to be a Smart, measurable, and closely connected or appropriate to what is being done or considered in your company. Don’t forget to set a duration or a timeframe within it you reach and accomplish your business goal.

2-Choose a ROI Marketing Track

To pursue your marketing and boost your brand, you must have a ROI marketing track. Marketing tools track every touchpoint and interaction. No matter how big or small your goal is, you have to track the return on investments. Thus, you need to make sure having the right tools for your marketing goal. The methods of ROI measurement will involve data. There are multiple ways to rack ROI, such as Ruler Analytics, Cyfe and Google Analytics.

• Ruler Analytics helps in identifying your leads’ source, measure how they move through the pipeline. Also, Ruler track every visitor over multiple sessions, traffic sources and keywords.
• Cyfe, an online business dashboard that offers all of your business data in one fully organized. It helps measure and monitor the ROI
• Google Analytics: most platform used to collect and measure data. Free of charge and having many tools, this web analytics service provides you to calculate statistics and basic analytics. Whether that’s sales, lead or coupon.., Google Analytics can track the ROI. Also, it helps you optimizing your website page to boost conversions. Finally, Google Analytics allow you, via Conversion Path Reports (at the top) to see the steps that led the conversions.

3-Measure what matters

Make sure you are using the right metrics to track. Depending on your investment’s goal, you must choose an effective metric to track ROI.

For example, if you want to increase revenue, you should track this metrics: Conversion Rate; Cost per acquisition and Customer lifetime value

But, if you want to increase and expand brand awareness, you have to track different metrics like Direct and Referral tracking and Social media mentions.

This will have effect on how to increase and improve ROI in digital marketing.

Reduce Costs

Another way to increase ROI is to reduce costs and expenses. If you are not able to increase your income, you may want to reduce costs.

Thus, you can divide and segment your costs. Also, you must have a personal management which helps you plan ad control company’s finance.

Finally, many techniques are used to reduce costs, such as Standard Costing, Value Analysis and Job Evaluate.