One of the most important objectives when carrying out a digital marketing campaign is undoubtedly the return on investment (ROI). In addition to using your company’s resources efficiently, you should also seek to recover part or all of the investment as much as possible.
We know that the budget dedicated to marketing is limited and therefore you must make the most of it. In fact, according to the 2018 “State of Inbound” report, 40% of marketing specialists know the importance of ROI and want to calculate and test it before embarking on their digital strategy.
In this article, we will share 5 ways to increase the ROI of your digital marketing campaigns. In this way, you can optimize your investment of time, money, and effort in promotional strategies.
How important is ROI?
ROI allows you to measure your efforts and only in this way you will know if there has been an improvement, or if you are applying the appropriate strategies. It is one of the most important variables in digital marketing and must be taken as a priority to avoid campaigns that at first glance seem to be successful and end without reporting the expected results.
Improve the ROI of your digital strategy
To increase the percentage of return on investment, you must take into account how and where you invest your resources. The idea is to use the budget very well to increase the chances of recovering the investment made. So pay attention to these strategies:
1. Identify your goals before starting your campaign
Many companies don’t measure the ROI of their campaigns because they don’t set clear goals. You must set long-term goals that can be met by achieving small goals. And we are not talking about goals like “increasing conversions.” SMART goals should be:
- Limited in time
An example of a SMART goal to start your campaign could be “Convert 25% of prospects into customers within 6 months”. Of course, both the target percentage and the estimated time should be carefully calculated and in line with the main objective of your digital marketing strategy.
2. Choose KPIs that are related to your goals
To know if you are approaching your goals you must take into account a series of metrics related to each of them. For example, if one of your goals is to increase your conversions by 25%, the level of sales will be one of your most important KPIs, which will allow you to measure the conversion rate.
Key performance indicators (KPIs) are what will help you know whether or not you are approaching your goals. The measurements will indicate if you should implement improvements in the middle of your strategy that correct any deviation.
3. Focus your efforts on the right audience
When starting a digital marketing campaign on social media platforms, companies generally want to reach all of their target audiences through the same content. However, you should know that this is not possible since although a group of people meet the demographic characteristics of your target, you are probably not analyzing their context.
Within your target audience, there are different types of preferences, aspirations, and needs, in addition to being at different points in the buying process. That is why you must diversify your content for each audience you want to reach and leverage it according to a buyer journey.
It sounds complicated but it is getting easier and easier to collect and analyze this type of information about your contacts. Client management tools, such as prospecting CRM, like HubSpot, allows you to organize relevant data about your clients to understand their needs and, even better, anticipate them, basically are part of a strategy focused on the client, which allows you to enhance relationships, improve customer service and after-sales service.
Through these tools, you can build subcategories within your target that allow you to increasingly personalize your campaigns such as:
- Potential prospects
- New clients.
- Regular customers.
- Customers who have not purchased in months.
4. Perform A/B tests to identify the strategies with the best results
When you have a defined budget to invest in marketing, it is normal that you want to have all the numbers first before making any effort. However, nobody said that you could not carry out small tests that do not suppose a significant expense for your company.
Testing can help you discover if the strategy you are designing will have the answer you expect or lead you to discover new perspectives that you had not taken into account to improve it. It is an excellent way to detail which elements may be affecting or enhancing your marketing strategy to correct or reinforce them.
Simple tests can be changing the font style of your website, its colors, the feed of your social networks, the location of your contact information, creating an article with a different call to action than the one you usually use, etc. Even if they seem like small details they can give you clues as to what may or may not work in your strategy.
Just make sure you have the tools in place to measure the results. We recommend that you change only one item at a time, and then return it to its original version. In this way, you can identify at which stage it generated more conversions and decide to change it or keep it as it was.
5. Maintain an attitude of constant improvement
Even if your ROI seems to have reached a desired percentage in the metrics and you are ready to carry out your campaign, do not lose the willingness to apply improvements. If you must adjust your strategy, don’t be afraid to do it. Data and measurements will be your guide to grow your brand.
Paying attention to them will allow you to determine new trends and areas that you can further develop. Therefore, the best recommendation is to carry out your marketing strategy and keep an eye on each movement to adjust what is necessary.
Also, you must evaluate how your campaign evolves on each platform and customize it according to the user. For example, the strategy you use for mobile devices should be focused on those who use it the most according to the data you gather. The same applies to promotional campaigns in person, by phone, email, etc.
Overall, it is paramount that you always plan your digital marketing strategies and campaigns with a clear idea of the ROI you want to achieve. Work on it step by step, start by planning it out and keep on optimizing.
If you need any support to plan your digital strategy, reach out! Our team at MdB is glad to help. Click below to schedule a free consultation.