Are you new to marketing ROI? Do you want to know how it affects your business and your profits? Then please read along as we discuss your marketing ROI! ROI stands for return on investment. Depending on the business you are in, ROI can look different, but it usually comes down to the same idea; tracking your project to see if it is helping or hurting your business/company.
When starting most projects in your business, you usually plan a budget for your costs. You may also plan on your projected return and of course, you want the return to be bigger than the cost. In marketing, the same principle applies. You want your marketing to be bringing in revenue, or a positive ROI. In this blog, we want to discuss how you can measure your ROI, so you can keep reeling in more revenue in your business.
When it comes to figuring out your ROI, we will take a look at this formula; [((number of leads x lead-to-customer rate x average sales price) – cost or ad spend) ÷ cost or ad spend] x 100. While it may look confusing, we will go ahead and explain it into further detail.
You want to start by identifying the next following things:
Number of leads: How many people converted to a lead?
Lead-to-customer rate: What percentage of leads became a customer? If 17 out of 100 leads become a customer, your lead to customer rate would be 17% or 0.17.
Average sales price: The average price of your product. Take into consideration if you occasionally apply discounts or alter pricing in other ways.
Cost or ad spend: Here, you can factor in costs including ad spend, or costs related to producing content.
Following this formula, you can get a sense of your ROI. We also have some examples of ROI that you may want to know about.
Written Content: Such as blogs.
Email Marketing: Sending emails with reminders, ads, or notices.
Video Marketing: Creating videos that provide details on your products or services.
Social Media: Using paid social media services or posts that create traffic to your website.
At Rock Star Marketing, we specialize in marketing services so that you can have a positive ROI in your business or company. We provide services such as social media marketing, graphic design, SEO content, graphic design, video ads, and blogs. If you want to know more about our services you can click here. We also offer a free discovery session so we can match you with the best services that will benefit your business!
Call Rock Star Marketing at (408) 833-9868 or contact us using the button below.