4 Tips to Watch Marketing ROI
If you are worried about staying within your marketing budget, it is important to understand your Return on Investment for every marketing expense.
I recently read a report published by Boston Consulting Group that looked at how small businesses use online advertising. The study found that although many businesses now invest in social media and websites, many did not put much thought into their overall digital strategy. Sadly, most do not realize when they are leaving money on the table due to their own marketing choices.
Here are a few suggestions to ensure that you are maximizing the return on your budget.
1) Make sure you connect with current clients on social media. You may think that you do not waste any money when you haphazardly assign a staff member (or even time for yourself) to spend time on Facebook and Twitter. However, you want to maximize your time of productive not busy work. On social media, you should have at least a rough idea of the percentage of how many actual paying customers follow you. If most of your sales are services delivered in your space, this percentage should be the majority to justify allocating a few hours a week of valuable resources. If not, invest time to remind your real clients to click Like. Note, businesses that actively sell products online typically have more fans but lower percentage but still yield a good return from social media.
2) Target where your potential clients hang out. What do you know about the likes and interests of your ideal clients. Spending money to form relationships and generate awareness where you know they hang out is wise. It is particularly important to think strategically if you are expanding to market new services or to a new demographic. Note, if your social media return seems low because of what I mentioned in #1, you may want to spend more time reaching out to influencers in your target demographic rather than building a raw fan count.
3) Monitor the average spend of a new client by where you find them. Some owners simply focus on getting MORE traffic instead of HIGH VALUE clients. What sounds better, 5 clients who will spend $20 each with you once or 1 client that will spend $120 with you every 6 months for the next 5 years. For each marketing idea you implement, you must track this to ensure you are making the best decision for your business. If it turns out that referrals from your current clients lead to the best clients, then it is worthwhile to invest resources in incentives, such as bonuses, special treatments, etc.
4) Take action after reviewing your web traffic statistics. Many owners pat themselves on the back for achieving high web traffic. Don’t stop there; strive for high conversion. High traffic without accompanying sales mean that you have a lot of untapped opportunity to woo visitors into clients. If you want to get the full return from that lovely website, you need to make it easier for clients to make an appointment, buy products, and make referrals from your site.
The final scoop:
Don’t blindly spend or stop spending money without understanding the impact. Take the time to evaluate whether your collective promotion efforts make sense for where you are today