While every entrepreneur knows that their digital marketing game may as well determine the effectiveness of their business efforts, sometimes they may feel as if they’re not getting their money’s worth.
This isn’t the fault of the marketing strategy per se. This has more to do with using the wrong strategy for the kind of business that you have and the goals that you wish to achieve. But, the bottom line is, digital marketing is still one of the most effective forms of marketing to date.
The most significant advantage of digital marketing over its traditional counterpart lies in the fact that you get a much more thorough and exact analysis of its performance. This is made possible in part due to the many online tools that are now available to help you measure whether or not the strategies that you’ve employed are indeed effective.
Still, for a lot of people, due to the inefficient execution, the ROI of used marketing methods gives far inferior results than anticipated (or even figures that are far below the industry average).
So, how do you increase their digital marketing ROI? Here are several tips that can help.
Essential Tips on How to Increase Digital Marketing ROI
Correlation Between Content, Social and Revenue
In the digital marketing industry today, there’s so much use of websites and social media accounts. This is precisely so as consumers all over the world flock to the Internet as their first choice, whenever searching for information or products and services to purchase. So, if you’re not updated with having these, you’ll simply fall behind the competition.
But, do you actually know whether or not your website and social media accounts can translate into the goals that you intend to achieve for your business?
The first thing you need to ask yourself is how do your successful social media leverage and the quality of your content translate into revenue. In other words, if you post a piece of content and it has 10,000 views, 5,000 likes, and 500 shares. How exactly does this convert into sales?
Without it, these relevant performance indicators are merely vanity metrics. They don’t mean anything else but numbers. This is why you have to learn and figure out what to do with these numbers to make them useful to you.
Once you figure out this correlation, you’ll be able to enjoy the following benefits:
- Producing content of the higher quality.
- Stronger market research.
After successfully achieving both, you’ll also start to see better results in your customer engagement.
Other than this, you also need to figure out your cost-per-conversion ratio. It is the first figure that represents a crossover between the financial and marketing aspects of your business.
How many people you can convert with the amount of money that you are going to spend on marketing. Or how much does it cost to gain a single lead (or paying customer)?
The answer can help you optimize your marketing campaigns to ensure that whatever cost is spent also equates to results.
KPIs and Your Business Goals
The thing that you need to pay particular attention to are the KPIs (key performance indicators) of your business (especially your marketing). It is something that you need to mainly focus on to avoid giving too much credit to the vanity mentioned above metrics.
What you need to track are your sales revenue, the cost-per-lead (something we’ve already mentioned), the traffic-per-lead, and the amount of organic traffic that your online presence is generating. Other than this, you can get a bit more specific and start tracking social media traffic and mobile traffic leads and conversion rates.
The most important thing worth mentioning is the fact that these KPIs change over time. It means that you can’t just collect and interpret data; you need to do this regularly. Moreover, raw data isn’t that much of use to you, to begin with.
You also need this data interpreted and converted into information. This way, you get to understand it properly and ensure that your marketing perfectly aligns with your overall business goals and strategy. This way, it becomes a useful tool, instead of being interpreted as a force that you can’t seem to control.
Working With Professionals
One of the simplest ways to increase the effectiveness (and digital marketing ROI) of your marketing is to start working with professionals simply. In other words, instead of throwing resources, manpower, and time away.
You might want to simply outsource this task and let someone more skilled handle it. When you leave your digital marketing activities in the hands of the experts, you also increase the likelihood of having successful outputs, such as having sales ready websites, rather than having to do trial-and-error over and over again.
Now, one of the main reasons for outsourcing is the fact that you can find specialists and work with the experienced team of GWM Brisbane, instead of having to rely on your inexperienced team.
Technically, your team wouldn’t have to be inexperienced. But to create a veteran in-house SEO team, you would, technically, have to spend a small fortune. The cost-effectiveness simply lies on the side of outsourcing. Why? Well, first of all. You don’t have to pay stellar salaries and bonuses that veteran SEO marketers would find it appropriate to stay in your employ.
If you plan on hiring an inexperienced team and then equipping and training them on your own, it might be even more expensive. Not to mention that they would lack significant experience. Outsourcing is simply more convenient.
Discovering New Trends and Methods
Another thing worth mentioning is the fact that you need to figure out the effectiveness of new trends in the field of digital marketing ROI for all of this to work. For instance, the year 2020 is expected to be the year of voice search. Regardless of the field, this feature dominates the digital world because it is simply so convenient.
For instance, about 55 percent of teenagers are using it daily. It’s expected that by the year 2024. The global voice-based smart speaker market will reach the worth of about $30 billion. In other words, this is not a force to be reckoned with.
The thing about these new trends (not just voice-search but new platforms and means of marketing, as well) is the fact that they require a different technical approach to the issue. It is not like the traditional content marketing, where the most significant difference each year is in the quality of writing, size of content, and time spent writing/editing content.
Here, you need to acquire a whole new skillset and adjust your mindset to figure out the optimal course of action.
Increasing the Effectiveness of Technology Use
The next thing worth mentioning is the one regarding the technology resources that you have available, regardless of the marketing methods that you’re keen on using. The chances are that there’s a specialized platform that you should start using to get there.
Also, seeing as how you have to choose between free and premium versions (and because different platforms have different costs and a different set of available features), this can be quite tricky. Consulting the community on the topic at hand is usually a great idea.
Aside from this, you need to understand that it’s not just about the tool. Another issue that makes a significant difference is the so-called technical expertise. So, for instance, even if a tool is more effective on-paper. Do you need to ask yourself how much it would take your team to become proficient enough at using it?
Time is also a finite resource (one of the scarcest and the most valuable ones that you have), which is why you need to be extra careful when managing it.
Creating an Experience
One of the most abstract tips on how to increase the digital marketing ROI of your digital marketing is to focus on creating the experience. A high-converting content experience is not that hard to achieve once you follow up on one of our previous tips and start analyzing the target audience.
First of all, each demographic has its own set of preferences. If we’re talking about video content, each demographic has a preferred length of the video as well as a preferred platform that it should be shared on. By considering just these two things, you will drastically boost the effectiveness of your content marketing strategy.
Aside from this, you might want to start thinking about roleplaying. Try imagining yourself as an average member of your target audience and think about what kind of content you would be interested in. The biggest downside of this method is the fact that you aren’t necessarily a member of your target audience.
How is this possible? Well, it’s relatively simple – Does Jeff Bezos buys his items from Amazon? Not likely. In this scenario, it would be great if you were able to create more scenarios in which you get to interact (face-to-face) with some of your target audience members.
Setting the Digital Marketing ROI Budget
Finally, one of the most important questions (as well as one that will determine the success of your marketing campaign) is – how much money are you willing to dedicate to your marketing budget. Here, you have no general rule. Generally, you’ll have to begin by looking at the current financial standing of your business, helping you decipher your spending ability.
The majority of businesses believe that setting aside 10 percent of their average annual revenue is enough; nonetheless, this is not necessarily the case. If a field is particularly competitive, anywhere between 20 and 50 percent may be more acceptable.
The key thing is that several well-grounded principles guide you. For instance, you get to look at the big picture, outline your sales funnel, list operational costs, scope out the competition, and create a marketing plan. Taking a step-by-step approach is particularly effective. Seeing as how it gives you a much better idea of what exactly you are dealing with.
Think of this process as if you were setting a budget for your entire business as you would like in your home. When you have this budget-setting activity, you’ve got a more concrete representation as to the limits of how much you can afford to spend. That way, you don’t make the mistake of having expenses that are too high, resulting in lower profit-earning potential and ROI.
Keep in mind that this is something that you need to adjust to your needs. A failure to do so will either leave you with a money shortage or in a scenario where you’re not using your full potential.
There are so many factors to running a successful campaign, and to get the best possible outcome. You have to do everything right.
First, it begins with matching the strategies you’ll employ with the business goals you wish to achieve. Then, as you use any of the digital marketing strategies above, be sure that you also make your regular checks as to its effectivity. In doing so, you know for sure that your chosen marketing campaigns are those that’ll help you achieve your business goals.
With the above-listed seven tips on your side, you will have a much easier job of doing just that.