ROI: 8 Easy Tips to Improve Your Return on Marketing
With the increasingly competitive nature of the business world today, more and more companies are looking to increase the efficiency of their marketing campaigns. KPIs, also known as key performance indicators, are generally used to evaluate how successful a campaign is in reaching its intended purpose. Since ROI (return of investment) is one of the most common KPIs, it is frequently used to evaluate a campaign’s efficiency and effectiveness. Therefore, it’s extremely important to maximize your campaign’s potential by striving to increase the return of your investment.
Here are some ways to improve ROI
Create SMART Goals
Before implementing a campaign, it’s important to set up goals and consider the factors that can impact your journey towards achieving them. This is where SMART goals come into play: specific, measurable, achievable, relevant, time-bound. In addition to helping you achieve your goals, utilizing this strategy can also make it easier to measure your progress.
Tailor your Content towards your Target Audience
With the increase in popularity of digital marketing over the years, consumers are always being bombarded with countless ads on a daily basis. Therefore, it is especially important to stand out and engage the attention of your target audience. A key way to appeal to your target audience is by creating valuable and meaningful content. After identifying your target audience and their personal information such as location, hobbies, and interests, you can tailor your content accordingly.
Avoid Vanity Metrics
When tracking the progress of your campaign, you should be cautious about the metrics you choose. Some metrics may be vanity metrics that cause you to lose sight of your campaign objectives. Some examples of vanity metrics include Facebook likes, raw page views, registered users, and others that have little to no correlation with revenue. Although some of these metrics can provide insight into how your marketing strategy is operating, they have no bearing on your campaign’s ROI.
Vanity metrics, in reality, divert attention and effort away from things that genuinely matter and have value. There are, however, a few useful measures that you should keep track of. Your click-through rate, engagement rate, reach, and other metrics are among them. Monitoring useful metrics and making appropriate adjustments will be greatly beneficial towards growing your brand.
Analyze your Social Media Presence
Nowadays, social media plays a major role in your company’s brand reputation. Therefore, it may be beneficial to conduct social media audits on a regular basis. Essentially, a social media audit is a process of examining your company’s analytics in order to determine growth, opportunities, and what can be done to improve your social media presence.
Check out Sprout Social’s free template for more information regarding how to conduct a social media audit. Also, make sure to regularly check review platforms and address any questions or concerns that customers may have.
The ability to leverage ongoing events to develop PR and marketing activities around them is known as moment marketing. Brands naturally insinuate themselves into ongoing conversations or trends. When done properly, it results in a favorable impact on brand credibility and awareness.
To execute moment marketing well, a strong marketing team is essential. In order to reach and engage with your target audience, social media can be quite significant. Professional marketing consultation from a marketing agency is strongly suggested because a moment marketing campaign takes place in “the moment,” as the name implies.
Evaluate your Competition
Do you want to know what works without having to do the work yourself? Take a look at what your industry rivals are doing by conducting competitor analysis reports. A competitor’s analysis gives you insight into how your competition is operating and potential opportunities for you to get ahead. It also allows you to stay atop of industry trends and ensure that your product/service meets or exceeds market standards on a consistent basis.
Conduct A/B Testing
A/B testing also referred to as split testing, is a technique for comparing two versions of a website or app to see which performs better. Essentially, it’s an experiment where at least two variants of a page are shown to users at random and statistical analysis is utilized to gauge which one performs better for a specific conversion objective. A/B testing can be beneficial by allowing marketing and product management teams to make slight adjustments to their user experiences while collecting data on the results.
This enables them to form hypotheses and better understand why particular aspects of their experiences influence user behavior. In addition, A/B testing can also disprove false pre-existing assumptions in regards to what an individual thinks is the best user experience for a given goal. Furthermore, A/B can also be greatly beneficial towards continuously improving a given experience and enhancing a single goal such as conversation rate over time.
Here are the steps you can take to conduct A/B testing
1. Pick a variable to test
As you optimize web pages and emails, you may discover a number of variables that you want to examine. However, you’ll need to isolate one “independent variable” and test its performance to determine how effective an adjustment is; otherwise, you won’t be able to tell which one was responsible for performance improvements.
2. Set-up Goals
Choose a primary metric to focus on — before you run the test — even though you’ll be measuring a variety of metrics for each test. It’s a good idea to do it before you set up the second variation. This is the “dependent variable” you’re working with. Consider where you’d like this variable to be at the conclusion of A/B testing. You may make an official hypothesis and assess your data based off of it.
3. Utilize an A/B Testing Tool
If you’re a HubSpot Enterprise customer, you can use the software’s A/B testing tools to test emails, calls-to-action, and landing pages. If you aren’t a HubSpot Enterprise customer, you can try using Google Analytics’ Experiments, which allows you to A/B test up to 10 entire versions of a single web page and evaluate performance using a random sample of users.
4. Implement Changes Based on Test Results
While A/B tests can help you influence results on a case-by-case basis, the lessons you acquire from each test can also be applied to future attempts. For example, if you’ve run A/B tests in your email marketing and found that utilizing numbers in email subject lines consistently results in higher clickthrough rates, you might want to use that strategy in more of your emails.
5. Utilize Predictive Analytics
Predictive analytics is a crucial tool for calculating and increasing your ROI. It employs machine learning and artificial intelligence to derive insights from vast datasets, models, and algorithms in order to forecast consumer behavior.
Predictive analytics may also help marketers identify and prioritize leads in order to find the ideal customer base that is most likely to convert. It also aids in client retention and conversation rates because marketers are better prepared with relevant data that allows them to comprehend consumers’ needs or wants.
Looking to learn more about ROI? See how to increase ROI in the SaaS industry!
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