How to Improve Your Marketing ROI

Calculating your marketing ROI is crucial because it provides valuable insights and improves your marketing strategy. It defines your goals and considers real numbers to measure the success of your marketing campaign.

The purpose is to empower yourself with data and optimize your marketing campaign. Here is how you can improve your marketing ROI. The following tips are based on Alan Safahi’s insights, a San Francisco-based entrepreneur and successful startup owner. Read on!

Choose the Right List

Choosing or creating the correct customer list is critical because successful businesses serve a more specific market. According to Alan Safahi Orinda, an effective marketing campaign targets customers interested in your product or service.

Recent research shows that 40% of direct mail success is due to the correct list of prospects. Therefore, you can reach your target audience and generate high-quality leads when you have the right list. Thus, you can increase your ROIs.

Timing is Critical

People don’t purchase groceries or veggies/fruits months before cooking. So, there is no need to create a list of prospects before your marketing campaign is ready. Information or data can spoil over time.

Studies show that prospects list go obsolete at a 15% rate or more every year. Therefore, timing is critical when launching your marketing campaign. Otherwise, you can’t improve your marketing ROIs.

Define Your Campaign Goals

Before launching your marketing campaign, ask yourself, “What will I achieve with this campaign?” According to Alan Safahi, different businesses have different marketing goals. For instance, some develop a strategy to establish their brand identity or improve their online presence.

On the other hand, other businesses aim to generate quality leads and increase sales. Therefore, Safahi Orinda recommends determining your marketing goals before launching the campaign. The purpose is to achieve your goal with a clear objective. Without a defined plan, you can’t determine success or measure your marketing campaign’s ROI.

Focus on Call to Action

A successful marketing campaign generates excitement among your potential and existing customers. The primary goal is to elicit responses. Not including a call to action is one of the most significant mistakes entrepreneurs and small businesses commit when measuring marketing ROIs. Alan Safahi recommends programs like:

• Free consultations
• Discounts
• Promotional products
• Buy-one-get-one-free offers

Use Multiple Communication Tools

Many consumers prefer email communication or social media engagement in today’s digital world instead of phone calls. However, Safahi recommends incorporating the traditional and contemporary communication channels to receive better and faster response rates. Eliminating one method will reduce the response rate by 25%. Safahi suggests:

• Social media advertising
• Search engine marketing
• Direct marketing
• Sales promotion
• Public relations
• Phone calls
• SMSs
• Email communication
• Digital forums

Track Results and Calculate ROI

Once you have launched a campaign, it is crucial to perform A/B split tests over time and monitor the number of consumers who respond to your marketing campaign. It would help if you analyzed the common characteristics of your target audience.

The purpose is to collect data, analyze it, and generate valuable insights to reduce workload and increase your reach for future marketing campaigns. You can calculate the ROI manually or use software tools to save time.

Moreover, measuring marketing ROI requires you to take your product’s sales growth, subtract the total cost of marketing or advertising, and divide the number by the marketing cost. For example, If you have made $2,000 in sales and the marketing campaign cost was $200, the ROI is 900%. The simple formula is:

$2,000-$200 = $1,800

$1,800 / $200 = 900%

Originally Posted: https://safahi.com/how-to-improve-your-marketing-roi-59719a964e6f