Digital marketing is on a continuous rise. So are the customers’ expectations regarding the personalization of digital interactions aimed at their needs. Ninety-eight percent of marketing officials are now merging traditional marketing efforts with digital tactics to meet these expectations. These include online advertisements, social media marketing, and blogging, to name a few. No matter the marketing technologies used, generating and increasing revenue remains the sole purpose of every business out there.
While digital marketing can be an extremely effective way to build and grow your business, you must strategically incorporate it into your marketing efforts. After all, it is senseless to invest money in digital marketing campaigns that bring no conversions. Enter ROI! It is a term digital marketers and business owners use to assess the impact of their investments.
In terms of digital marketing, ROI relates to the cash spent on a marketing campaign against its results. That said, measuring and improving digital marketing ROI is an entirely different ball game. But, not to worry, as today we will explore a few tips that will boost your digital marketing ROI.
Train your marketing staff
What do you currently spend (both in cash and time) on employee training? If you have to think of an answer, chances are you haven’t done it. And chances also are you haven’t thought about your marketing team at all, and the impact training can have on their overall efforts.
Empowering your marketing staff with new and improved skills or supplying them with tools to improve their current skills will drastically improve your sales, revenue, and, most importantly, digital marketing ROI. A well-trained marketing team will develop better strategies and campaigns to entice your target audience. And, as mentioned earlier, better objectives to help you get more than your money’s worth. Hence, consider encouraging them to enroll in quick courses with low barriers to entry, such as an MBA programs no GMAT required degrees. Or send them out to marketing seminars as both are easy ways to improve their marketing and business know-how.
Establish your ROI goals
When establishing any business goal, ensuring that your goals are specific, measurable, achievable, relevant, time bound will help. Setting SMART goals will help you determine a suitable ratio to achieve concerning how much money you invest and what you gain in return. A decent digital marketing ROI is 5:1, as this indicates the middle of the bell curve. Achieving a ratio above this is possible, but your goals need to be realistic, as we said.
Remember that this ratio depends on many other factors, which include your cost structure, your industry, and other variables. In the end, you should set a realistic digital marketing ROI. It will do your business good when you have an achievable ROI in mind.
Incorporate marketing automation
As digital channels grow in numbers and data starts to become more unwieldy, consider marketing automation tools to improve workflows and processes. Such digital marketing automation tools will increase your ROI. They enable your marketing staff to utilize every penny and time more efficiently.
For example, chatbots can automate your customer support, leading to an improved overall customer experience. Furthermore, these tools can also automate repetitive tasks like managing email lists, sending out offers, and other marketing-based functions.
Utilize predictive modeling
Predictive modeling or analysis is a vital tool for both improving and measuring your digital marketing ROI. It utilizes artificial intelligence and machine learning to gather insights through algorithms, datasets, helping marketers predict consumers’ behaviors. In terms of digital marketing, predictive modeling allows digital marketers to determine the leads closest to conversion in the sales funnel.
Through the gathered insights, marketers fine-tune their campaigns to turn high potential leads into paying customers. They can also improve the business’s customer retention rate with all the information to understand their target audiences’ needs. It also lets them make better, informed decisions regarding marketing strategies based on customer behavior.
Avoid undervalued or overruled metrics
When measuring your marketing campaign’s performance, you should be aware of undervalued or overruled performance metrics. For example, it might be effortless to measure shares or likes on Facebook. In the end, these metrics will have no impact on your revenue. However, it can also be a mistake to entirely rule them out, as they can indirectly improve your business’s rankings on SERPs. Eventually, it all depends on the goals you set and the KPIs you chose to evaluate your campaign’s success.
Find and seize opportunities
Once you crunch the numbers and incorporate the tools, finding and utilizing opportunities is vital. An example of such a case is Kraft foods. They reinvented their marketing strategy after cutting their ties with Mondale international eight years ago.
Bob Rupczynski, VP of CRM, data, and media, knew that they had tons of data but weren’t leveraging it to better their relationships with their customers. After splitting, they leveraged around a hundred million online visitors, identifying more than eight hundred segments as guides when purchasing adverts. The returns they got in sales were tremendous.
Experimenting and playing around with different digital marketing strategies will help you boost your ROI in the long run. As mentioned above, one of the essential strategies is to make sure you set ‘SMART’ ROI goals for all your marketing campaigns. Focusing too much on undervalued performance measurement metrics will stop you from enhancing your campaign and increasing online conversions. So, ensure that your entire focus is on creating valuable, informative content and seizing any opportunity that comes your way.