Every business wants to know that the marketing strategies they’ve put into place are working to generate more income for them. This is true for all businesses across the board, whether they offer products or services, have a physical presence and/or online. Marketing is about attracting more customers and increasing sales.
Statistics indicate that online marketing in the United States alone is expected to reach more than one hundred twenty billion dollars by the year 2021, however interestingly enough almost forty-percent of businesses state that one of their biggest challenges is truly being able to determine their marketing ROI.
While traffic to a business website or response to an ad is of definite interest for online businesses, there are other factors that are more tangible in determining if your methods of online marketing are working.
Why Is ROI Important?
ROI (return-on-investment) is important in various business-related activities, and having the ability to measure marketing ROI is extremely important because this includes measuring the results of not only the marketing of your retail products, but also the marketing and building of your brand.
One of the first priorities in online marketing is attracting traffic to your website, but then once there, you want them to be so attracted to your company products and brand that they not only visit your site, but purchase from you and hopefully decide that your company is one they can trust.
Brand Awareness Increases Marketing ROI
The ROI of your company brand is quite possibly one of the most important of all. People like feeling a connection with their favorite brands. When a company has a strong brand, it speaks for itself because it has earned trust, authority, quality and reliability. When a brand is recognized merely by sight and has a following of loyal customers, then that brand has succeeded in delivering its message and earning the trust of customers.
Brand ROI can set your company apart from all of your competitors, regardless of comparison, price difference, flashiness, etc. People place trust in brands, not individual products, not the best prices; but something they personally identify within a positive way. Your brand can be your most valuable asset so it should be a priority in building awareness with your marketing strategies.
Measuring Your ROI
Your ROI is measured by the growth of sales generated less the cost of marketing and then that number is divided by the marketing cost. While this is a very simplistic way of measuring, it does provide you with the basics so you’ll know how your marketing strategies should be adjusted.
Increasing Your ROI
In order to increase ROI, you’ll need to clearly define your company goals. You can start by assessing the historical data and studying sales trends. By pinpointing exactly what you want to increase, you’ll know what data to track so you can more accurately measure ROI. It is easy to tell your marketing team that you want measurements on every marketing campaign, but those measurements do not necessarily take ROI into account.
Thus, be sure to align your financial goals with the marketing analytics you compile. Also, be sure to take into account the history of previous sales trends and data and use that in comparison to current marketing strategies. This will provide you with some aspects of being able to predict and forecast what reasonable targets would be for your company.
By increasing your ROI, you are either increasing income or reducing costs. When it comes to marketing ROI, consider yourself successful if you earn anything above each dollar you have invested. Below are some of the easiest and fastest ways for increasing ROI
#1 Content Marketing
Content marketing is used in every single form of marketing. Whether you market with videos, ad-sense ads, informative content on your business website and/or Facebook page, etc., they all have content.
A major plus with content marketing is that it can accomplish multiple goals.
- Improve your company’s Brand recognition with consumers: This can be done merely for the purpose of increasing traffic to your site.
- Provide substantial value in your content. Give the audience helpful information, a free eBook with tips, etc. Quality content is much more valuable than quantity.
- Make your content “evergreen” meaning create a piece of content that will maintain its value regardless of when it was initially posted. This will pay off over a long period of time.
- Re-use and re-purpose content. If you have pages of useful quality content on your website, compile it into an eBook of tips and target a different audience base. If you have a great piece of content in written form, re-purpose it into a video for use on a social media platform. This will freshen it up and possibly attract new people.
- Using your Facebook page, encourage feedback from your audience by asking them what interests them, or provide a survey and encourage feedback. Not only does this allow users to create content for you but also highlights you care about their thoughts and opinions.
#2 Create Targeted Ad Campaigns
Create ads that target a different demographic audience. Perhaps you have an email list that you’ve not sent to for quite sometime, try targeting them and spark new interest. Create an email campaign that has an embedded video, as this has been shown to increase conversion rates by more than fifteen percent.
#3 Implement Split Testing
In order for split testing to provide the best results, you’ll need to create two marketing campaigns that have different content but send the same message. Be sure to track the data to see which received the best results. The element change may be a photograph or a headline, but the data you collect will help you determine the changes that need to be made that could potentially attract a larger audience base.
Marketers should always use automation, this will give you the ability to scale as you grow your business as well as improve efficiency. Marketing trends will always change; therefore your marketing strategies must be updated frequently. Just to reiterate content marketing provides flexibility with how it is utilized. By having a clear focus on your marketing goals, you will be able to compile data so your ROI for online retail marketing will improve and grow with your company.
Get Familiar with Building Facebook Ads for your retail Business
If you’re looking to Build a successful Facebook ad strategy for your retail business we have a few tips to help you get started. To see how you can use Facebook ads for your retail business, check out our pillar page on how to Build a successful Facebook ad strategy for your retail business.