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Best Ways to Increase your ROI

One way to increase your return on investments(ROI) is to generate more sales and revenues or raise your prices. If you can increase sales and revenues without increasing your costs, or only increase your costs enough to still provide a net gain in profits, you’ve improved your return.

• What is “Return”?
The first step in improving your return on investment is to clearly define the
potential return or returns you might get from your investment. These can include
higher sales, increased revenues, bigger profits, reduced overhead or production
costs, higher employee retention, better customer satisfaction, increased brand
preference, or fewer government regulations. If possible, set multiple benchmarks
for your return goals. For example, instead of setting increased sales as a goal, set
increased sales during a specific month, in a particular territory, using a specific
sales rep or from a particular distribution channel as a goal.
• What is ROI?
Marketing ROI is the practice of attributing profit and revenue growth to the
impact of marketing initiatives. By calculating marketing ROI, organizations can
measure the degree to which marketing efforts either holistically, or on a
campaign-basis, contribute to revenue growth. Typically, marketing ROI is used
to justify marketing spend and budget allocation for ongoing and future
campaigns and initiatives.
• How to use ROI?
At an organizational level, calculating marketing return on investment can help
guide business decisions and optimize marketing efforts. For marketers,
understanding the ROI generated by the campaign helps:

  1. Justify Marketing Spend
  2. Distribute Marketing Budgets
  3. Measure Campaign Success and Establish Baselines
  4. Competitive Analysis
    • How to improve your ROI?
    One way to increase your return on investments is to generate more sales and
    revenues or raise your prices. If you can increase sales and revenues without
    increasing your costs, or only increase your costs enough to still provide a net gain
    in profits, you’ve improved your return. If you can raise your prices without
    decreasing your sales enough to erode profits, you’ve improved your return. Using
    the calculation of your current return, look at ways to improve your sales and
    revenues in ways that provide you with a greater profit than your current business
    practices.

• Best ways to increase your ROI.
Today, data is floating all around us. From unique visitors to social media
followers, senior management may be confused and overwhelmed about how
marketing analytics relates to ROI. Setting clear, short, and long-term objectives is
just the beginning of improving profits and resource allocation.
Brian Massey, a Conversion Scientist at Conversion Sciences, suggests that we
“stop thinking of analytics as a discipline of data scientists,” instead we can make
good decisions from unexpected sources. So, that’s my challenge to you.
Rev up your ROI by recognizing distractions and executing differently. Here are five
tips to help your business thrive:
• Plan for ROI
Value exists in quantifying the expected outcomes from marketing investments. Learn
what to measure, when to measure and how to measure. To achieve your goals,
establish specific steps to move the process along.
According to the State of Marketing Measurement report, 82% of marketers say their
executives desire every campaign measured, but less than a third can effectively
evaluate the ROI of each channel. Moreover, only 48% of marketers are using web
analytics tools to measure marketing campaign effectiveness.
Find clarity in your plan by creating an initial outline. Look at historical data; pinpoint
any trends. Then, flesh out your outline into a detailed plan. Figure out how you can
install analytics into your existing process, like sending marketing emails and
launching new products.
Be an investigator! Plan and search for ways to measure effectiveness in your
organization by:
• Aligning marketing analytics with financial goals.
• Using predictive modeling in your marketing data analysis.
• Obtaining customer engagement data from social feeds.
• Avoid Vanity Metrics
Keep away from metrics that distract your team from the business goal. Typical
marketing metrics like Facebook fans and press release shares may impress folks,
but often don’t correlate to revenue.
Jason Amunwa, Director of Products at Filament, states:

“Vanity metrics do nothing for your actual website objectives, but make your
marketing efforts look good. This is problematic because oftentimes they siphon effort
and focus away from the things that could move the needle for you. Engagement
metrics tell you what content is truly performing for you, what’s just “meh”, and
what’s ripe for enrichment and optimization; in short, engagement metrics tell you

where the real opportunities are for growth.”

When you collect the right data, you save time and make better predictions. Leverage
your tools by:
• Creating customized reports with the data your company needs.
• Tracking your customers’ behavior consistently.
• Analyzing the data before, during, and after a marketing initiative.
• Sales, Sales, and More Sales

The Information Age has produced a new type of consumer—an informed buyer.
People now make purchases based on blogs, reviews, and social networks. The good
news for your business is that you have access to the same information. The bad news:
your team doesn’t know how to translate that data into revenue.
Shed light on what marketing programs are profitable. Use data to increase sales by:
• Anchoring analytics on a strategy, not the previous year’s budget.
• Understanding the consumer’s decision journey to purchase your product or
service.
• Discussing ROI with the entire organization, not just the marketing and sales
teams.
• Experiment Frequently
Experimentation offers opportunities for your business to accelerate its growth.
Testing should not only offer insight but also alternatives. Furthermore, it doesn’t
have to be a cumbersome process; simple business experiments work well.
Try the test-and-learn approach. Take one action with one targeted group, take a
different action (or no action) with a control group, and then compare the results.
This method keeps the process simple, and outcomes become apparent without the
hassle.
Telestream, a provider of software and hardware products, increased its revenue by
300% with the help of Blast Analytics & Marketing. The marketing firm conducted
conversion rate optimization testing, which uncovered key findings that led to a
redesigned product feature matrix. The new site design gave potential customers a
better understanding of Telestream’s product offerings and persuaded them to select
the higher-priced offering.

Improve the returns on your marketing by:
• Setting aside some of your budgets exclusively for experimentation.
• Picking one focus area; test until you can’t improve anymore.
• Moving quickly from failed experiments; no benefit comes from sulking in
defeat.

• Make a Decision Without Regret

Reporting your marketing analytics is necessary for your business’s success. More
importantly, your team should focus on making an informed decision from those
reports. So, what’s stopping management from taking action? They may have a case of
analysis paralysis.
You can quench your organization’s thirst for more data by:
• Introducing definitive boundaries on when data collection should halt.
• Ensuring that all analytics reports include action items.
• Creating a subcommittee to follow-up on decisions made after an analytical
report.

Don’t let the chips fall where they may. Assess how your business can profit from
marketing analytics. Your ROI depends on how you create and implement your
business strategy. From planning to decision-making, your team can lower costs,
increase sales, and spread brand awareness.

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