Improve your return on investment (ROI)

For efficient and successful marketing, it is essential to calculate as accurately as possible. Because only if your sales, profits and losses can be measured exactly, you know whether marketing campaigns are profitable from an economic point of view.

Return on Investment

What is the return on investment?

If you invest in one or more marketing campaigns, it goes without saying that this should also pay off again - ideally many times over.

ROI is therefore the return on the capital used for campaigns.

The higher the return on investment, the more success your marketing strategies will have. So in the best case scenario, you only have to invest a little money to achieve the highest possible ROI.

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What is the meaning of ROI?

In simple terms, ROI is a business ratio that shows your profit in relation to your expenditure. As an entrepreneur, you can use the return on investment to measure the profitability of your investments in numbers - so it's the return on investment, so to speak.

In sales, return on investment can help you examine your financial investments closely to draw appropriate conclusions regarding sales performance.

In this way, unnecessary investments can be avoided next time and the money can only be targeted where an appropriate return on investment is achieved.

In marketing, ROI is used in particular to plan how efficient an advertising campaign will be. Here, return on investment represents the ratio between the capital used for advertising as well as the profit generated from it.

In summary, the function of ROI is to help you determine whether and to what extent an investment will pay off and, at the same time, how profitable it actually is.

Improve ROI

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Improve return on investment

Your campaign is actually not going badly, you are generating leads and some conversions again and again and are satisfied with the new customers as well? Of course, this is a reason to be happy - nevertheless, you should also check mathematically whether your campaign is really profitable.

With different key performance indicators - called KPIs for short - you can find out within the scope of a success measurement whether your campaign is really that successful.

One such investment is the classic lead management campaign - here, among other things, there is also talk of return on marketing investment - ROMI for short.

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Set up tracking

In order to determine your ROI and find out how many new leads a campaign has brought you, it is first necessary to accurately measure conversions - the actions of your users, such as a contact request via an online form.

A tracking tool can also be used to determine the profitability of keywords or ads, as well as CPC and conversion rates.

Classically, many advertisers use Google Analytics for accurate data collection and evaluation, a free tool for analysis. It provides valuable insights into the interactions of your website visitors.

Once you have measured the conversions, the ROI can be determined and evaluated accordingly.

Important: The value of each conversion should always be higher than the amount you invest to bring about such a conversion.

Rely on content marketing

As already mentioned, you can find out whether your entrepreneurial efforts pay off by looking at the ratio between the capital invested and the profit generated by it.

The ROI from content marketing will show you if your content is helping conversion or if you should invest further in additional optimizations.

It's important to think long-term. Not all content is the same, although you naturally want to achieve a good ranking and visibility with all your content. Among other things, you should know the difference between editorial and product content. While the former gives you long-term value, product content is more crucial for short-term impact.

This is because editorial content can primarily provide help, guidance or basic information - anything important that users need at the start of their customer journey.

In this context, it is extremely important to adapt the entire communication to your target group and to make sure that you also start at the right touchpoints with regard to them.

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Qualify leads

The methods mentioned support you in drawing more attention to your website. However, this resulting traffic must also be used optimally. Each individual lead should be carefully evaluated - irrelevant ones are best filtered out directly, while those with a high probability of closing should be given more focus.

For example, terms that are geared towards specific buyer personas - i.e. the corresponding ideal customers - can be supportive in this regard.

So the first step in this process is to analyze how your target audience can find the information they need online - then tailor any content to that audience.

If, on the other hand, your investments and campaigns are primarily reaching unqualified leads that don't result in a conversion, you need to work on that first.

Only if you skilfully address the right target group can your marketing measures bring long-term success.

Use automation

Use automation in marketing to streamline your internal processes as efficiently as possible. An automated marketing measure supports you in ensuring that you catch the customer's eye at exactly the right time.

Automation in marketing can not only save you a lot of time and effort, but also help you achieve your sales and marketing goals faster and easier - which also ensures an increase in ROI.

One example here is automatic campaign management, which not only collects marketing data, but also processes and analyzes it. This includes, for example, the evaluation of lead qualification as well as campaign management and the analysis of collected ROI information.

In this way, marketing campaigns can be planned, controlled and monitored without you having to take care of every single process yourself.

Customer Profile

Source: Customer Profile from Aioma Software

Lead nurturing campaigns can also support you here: Sending one-off emails every week may not be the right solution - especially as sales cycles in B2B can sometimes be very long.

Lead Nurturing campaigns offer you the possibility to measure the interactions of users with the website, newsletters and other interfaces. With this collected data, you can then deliver appropriate content at the right time, personalized for each customer.

Conclusion

Even if your marketing campaign generates successful leads and you get new customers this way, an analysis must be done to identify gains or losses. Because otherwise it is hard to find out if and how a campaign should be continued or adjusted.

Many clicks or a high opening rate for mailings to leads as well as high traffic figures on your website may seem like a successful marketing campaign at first glance - but this is only confirmed by calculating the return on investment.

So pay special attention to the following points for a better return on investment:

  • Not the quantity, but the quality of your leads is crucial for your success

  • With a tracking tool you can determine the profitability of keywords or ads as well as the CPC and conversion rates

  • Editorial and product content are both important tools for increasing return on investment

  • Use automation for repetitive processes to save valuable time and effort

  • Lead Nurturing campaigns give you the ability to measure user interactions with the website, newsletter emails and other interfaces