Every project that requires money needs to know what ROI is, after all, this metric will help identify whether your actions are paying off.
Learn in detail what ROI is, its formula, how to calculate it and how to get the most out of your investment. Keep reading!
What is ROI?
The acronym ROI refers to the English term Return On Investment . As its name suggests, ROI is an indicator that shows us the amount of money earned or lost according to each investment made.
Return on Investment can be calculated in several areas of digital marketing such as Google AdWords advertising campaigns, social networks, blogs, email marketing, among others.
Why is it important to know this metric?
The ROI number you obtain will be key to analyzing the performance of your actions. This indicator will allow you to
determine what is most effective and what is not working slovenia phone number list and could be improved. In short, its
importance lies in the fact that it will provide you with answers to increase the profitability of your company.
You may be interested in: ROI and ROAS: Variables faced in Digital Marketing .
How to calculate ROI?
To get your ROI you need to look at the difference between income and investment, then divide this figure by investment, like this: ROI = (Income – Investment) / Investment.
For example, imagine that you invested $1,000 USD in a 10 be brave and use the latest features sales campaign and this campaign generated revenue of $3,000 USD, so when calculating the ROI we would have:
(3,000-1,000)/1,000 = 2.
This number is multiplied by 100 to transform the ROI into a profit percentage, meaning a 200% profit was obtained.
Do you want to know your company’s current ROI? Use this calculator to get clear percentages: ROI Calculator.
By analyzing this indicator you will be able to compare and measure the success of the actions taken to design
your campaigns with greater security.
Remember, there will be times when your profits are high, but you will also have losses; don’t get frustrated, learn from it!
Record these results in detail and keep in mind that red virgin islands mobile data numbers are teachers for entrepreneurship.
How can I improve the ROI of my project?
If your ROI has been lacking in good profits for some time, it’s time to take action! We share tips and advice to increase the ROI of your digital marketing campaigns.
Identify what you want to get from your campaign
Before starting a campaign, it is important to discuss the desired objectives for each action. Setting specific goals and the estimated time to achieve them is key. Always ROI and remember that there will be situations that take time, for example, an objective may be to convert 30% of prospects into clients within a period of 6 months.
Don’t forget to determine the KPIs that relate to the selected objective . There will be metrics such as sales
level, but you can also determine key performance indicators (KPI) such as clicks on subscriptions, increase in followers, among others.
Improve lead profiling
Golden rule: before starting any campaign, you must have defined or at least worked out a buyer persona
exercise. Starting without this exercise will make you lose money, so it is very important that you are clear about who
your clients are and design a prototype so that you can base your communication on this ideal.
Once you have this defined, nurture your leads; create a robust plan that accompanies these potential clients in the sales process. Don’t leave any loose ends; provide everything necessary in the purchase flow so that they don’t leave.
Prioritize the best products
A low ROI should lead you to focus your investment on products or services that give you a higher profit margin.
Cross-check your sales data with the investments you make and don’t neglect your star products or services. If you think they are already well positioned and don’t require further promotion, change the objective of these campaigns to loyalty, reviews, recommendations, among others.
Consider increasing prices on your products and services
This tip is the most logical to increase your ROI. Even if your sales are reduced, your profits can be higher due to quality and not quantity, you must analyze whether this is beneficial or not for your business.
There will also be times when your prices are too high, ROI and so you will need to lower them; make decisions based on the strategy you are applying and don’t forget to experiment to recognize the behavior of your market.
Measure and improve
Use your budget more and more wisely. Test to discover new perspectives that you had not considered and always remember to measure .
Don’t be guided only by the software you use for measurement . Although Analytics and other tools give you the results, we recommend that you create your own records. To do this, we recommend keeping the information in a CRM.
We also suggest that you modify only one element of the campaign at a time and then return it to its original version. This way you can identify at which stage the most conversions are generated and decide when it is a good time to keep it or modify it.
Always keep in mind that measurements are your guide to growing your brand.
Invest in SEO
Investing is not just about digital advertising! A SEO ( Search Engine Optimization ) strategy is extremely essential to support your strategies. Even if you define your campaigns correctly, there are organic traffic results that are very revealing and useful.
Your return on investment will suffer if you don’t optimize your on-page and off-page SEO practices, as these also boost your business’s positioning. Don’t forget that the power of recognition is the foundation of any successful brand in the world.