by Donovan Dillon Contributor
Posted on July 21, 2015 23:35 PM
One of the most challenging aspects of small business marketing is understanding how to measure your marketing ROI. Not only is it difficult to calculate ROI, but it can also be difficult to understand what to do to improve your return on investment in marketing dollars. There are a few key things to remember when calculating marketing ROI. Here are some tips to help improve.
Use Analytic and Measurement Tools
The best way to measure your small business marketing ROI is to use the proper analytic and measurement tools. Every social platform offers tools that allow you to measure, analyze and create insight into the results you are getting for your advertising dollars. Online calculators can also provide insight into how your marketing program is going. However, it is critical to conduct a thorough review of those statistics to determine the marketing efforts that worked and those that didn’t. It could be your advertising ran at the wrong time of day or that the image used was not accepted well by consumers. It could actually have been the message itself didn’t reach your target market. All of this information will be readily available in your marketing reports. Consider A/B testing as a method to determine if it was the image, content or something regarding the advertising that didn’t work well.
Choose the Right Avenue
Another factor that could affect your marketing ROI is the avenue where you chose to place your advertising. Not all advertising types work for all businesses. For example, a restaurant may have greater success with a direct mail campaign while a retail outlet might find better success with an email campaign. In order to adequately calculate ROI, it is important to understand the standards for your industry when it comes to cost. A simple online search reveals that the average cost per website click (CPC) for banner ads differs from industry to industry. This information will help you create a more detailed budget, set up realistic expectations and know whether your small business is competing adequately with others in the industry.
Keep Up to Date
It goes without saying that in order to be sure your marketing ROI is adequate, you must keep up-to-date with marketing adjustments, not only in your industry but in other areas as well. Search engines often adjust algorithms, and this means that what may have worked in the past might not work in the future. Social media also changes the way they display content and posts on a regular basis, so being aware of those changes can not only help you adjust your marketing program where necessary, but can also help you calculate your marketing ROI more accurately. In addition, staying abreast of these changes can help you keep your messaging current so that you reach more of your target market.
To learn more about how MODsocket can help you calculate your marketing ROI accurately or about how they can help take your business small business marketing efforts to the next level, explore our website and schedule a FREE, no-strings consultation call to speak with one of our seasoned marketing experts.