How To Combine Strategy and ROI To Increase Your Business
Growth results from many factors coming together to improve your business’s capabilities and performance. These factors include having a thorough digital marketing strategy and making smart use of your return on investment (ROI). You must manage them both wisely to boost your business.
Here are some tips a Chicago digital marketing agency can give to help boost your business’s strategy and ROI:
- Define digital marketing strategies.
- Calculate your marketing campaign ROI.
- Follow seven steps for combining strategy and ROI.
There is much to discuss, so get ready to take notes.
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What Is a Digital Marketing Strategy?
A digital marketing strategy uses one or more different digital marketing channels to reach your goals. These include spreading awareness of your brand and converting high-quality leads into paying customers. Whatever your goals, a channel and a strategy exist to help you reach them.
When combined with robust competitive analysis, you upgrade your digital marketing strategy for greater results. Flexibility is what makes this strategy essential for small businesses. Using multiple channels is critical when you work with a Chicago digital marketing agency.
How To Calculate Your Digital Marketing Campaign ROI
To start growing your business, make valuable returns initially, then reinvest them into developing better and stronger strategies that yield even more ROI. To do that, you should learn how to calculate the ROI of your digital marketing campaigns.
No special training is needed to use the formula. First, get the total sales growth of your business from the previous month or marketing cycle. Then subtract your digital marketing campaign's total cost from it. Finally, divide the result by the campaign cost.
|ROI = (sales growth - marketing cost) / marketing cost|
Seven Steps To Combine Strategy and ROI To Boost Your Business
Marketing never guarantees growth or even ROI for your business, so you need an effective strategy to guide your efforts. A digital marketing strategy built on a foundation of clever tactics ensures ROI. One of these tactics is setting key performance indicators (KPIs).
Other tactics include testing and updating your strategy to fit your current market needs. Most of the time, a headstrong approach does not advance your business and can possibly drag it down.
Follow the steps below to boost your strategy and increase your ROI:
1. Choose SMART Marketing Goals
Before setting your KPIs, you must carefully choose your goals, as they influence how you build the rest of your digital marketing strategy. Depending on what you hope to accomplish with your marketing, goals typically include more brand awareness and better sales figures.
One tip from a Chicago digital marketing agency is to make your goals specific, measurable, achievable, relevant, and time-bound (SMART). This way, KPIs are easier to define and measure. It makes your perspective on what your plan can and cannot achieve more practical and realistic.
2. Allocate Budget and Resources
Your digital marketing strategy cannot run without funding, whether that is to pay for manpower, software, or services. It also requires time and attention — other precious resources that you must divide across your responsibilities. Too little time spent on marketing yields poor results.
Too much time spent on marketing limits your ability to work on other aspects that are valuable to your business. More importantly, allocating your budget and resources must remain rooted in realistic expectations of when and where waste and losses can severely affect you.
3. Track All Your Campaign Results
Digital marketing is convenient because, most often, the metrics you need to evaluate how well or poorly your efforts pay off are accessible from your profile. For instance, Google Ads provides a comprehensive look into data such as keyword rankings, search terms, and cost-per-click (CPC).
Tracking leads and conversions requires more setup but is just as easy to trace and monitor once done. If you are working with a Chicago digital marketing agency, you can consolidate data from across your entire digital marketing strategy for better comparison.
4. Find Trends and Patterns in Data
You already know where and how to access campaign and marketing data, but what should you do with them? A review involves more than simply reading the data and looking for positive results. Seeing where you struggle is just as important because that indicates wasted potential.
For example, a restaurant in West Town can draw data points from a variety of places, including their website (reviews), social media (comments), and paid ads (clicks). Patterns here can be indicative of dishes that are popular with customers and major selling points of the establishment.
5. Improve Your Campaign Strategy
When you know the positive or negative points of your current business or digital marketing strategies, the next step is to find ways to improve them. You can either consistently build in a particular direction, revise the underperforming parts, or simultaneously do both.
If you want to use strategy and ROI to grow your business, do not take your success for granted or give up because of failures. Adapting is the best option available to take advantage of new opportunities and mitigate any major threats.
6. Optimize Your Strategy for Even Better Results
Choosing your course of action does not mean that everything goes your way or that the results are favorable. Testing is the only reliable way to find out what does or does not work. Without sufficient testing, your campaign results can be erratic at best.
Unpredictability is not beneficial to your business goals. Avoiding it at all costs should be your priority for a chance at success. For instance, if a restaurant often serves burned food that cannot be served to customers, they probably will not stay in business for very long.
7. Repeat the Process as Necessary
At the outset of this guide, we mentioned that using strategy and ROI to grow your business is cyclical. The same principle applies to your digital marketing strategy as a whole. What you want to avoid is a predictable and tiresome approach that people find uninteresting.
Hiring a digital marketing partner is one solution to this potential problem. With their expertise in different strategies, they can match fresh ideas with your current goals for optimal ROI. Additionally, you can count on them to successfully manage your entire digital marketing strategy.
Your marketing strategy and ROI work together to grow your business, which means you need both to succeed. Following the proper step-by-step process is the best starting point for meeting your growth goals. Hiring a Chicago digital marketing agency considerably helps the process, too.
Need help improving your business’s digital marketing strategy and ROI? Contact Digital Authority Partners (DAP) to learn how we can help.
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