Here’s How to Increase Marketing ROI in 5 Easy Steps

Mon, 15 Jul 2024
How to increase marketing ROI

You’ve poured your heart and soul into your small business here in Nigeria. You know your products or services are top-notch, but getting the word out feels like shouting in a crowded market—everyone’s trying to be heard, and it’s hard to know if anyone is listening. 

We understand. It can feel like you’re spending money with no guarantee of a return. You want to see real results from your marketing efforts, not just watch your hard-earned Naira disappear. That’s where understanding and improving your marketing ROI (return on investment) comes in. It’s about knowing what’s working, what’s not, and how to get the most out of your marketing budget.

 

What is Marketing ROI? 

Simply put, it’s the amount you earn from your marketing efforts compared to what you spend. It’s about knowing what’s working, what’s not, and how to get the most out of your marketing budget.

In this post, we’ll guide you through 5 easy steps to boost your marketing ROI. We’ll keep it simple and actionable, so you can stop stressing and start seeing the returns you deserve.

 

How to Increase Marketing ROI in 5 Easy Steps

  1. Know Your Numbers
  2. Set SMART Goals
  3. Focus on Your Best Channels
  4. Optimize, Optimize, Optimize
  5. Leverage Technology

 

Step 1: Know Your Numbers

Here’s Why Tracking Your Current ROI is Crucial

Before you can improve anything, you need to know where you stand. That’s why it’s so important to track your current ROI before thinking of how to increase marketing ROI. Think of it like taking a snapshot of your current marketing health – it shows you what’s working (or not working) and gives you a starting point for improvement.

 

So, how do you actually track ROI? It might seem complicated, but it’s really not. Here’s how to get started:

  1. Figure out your marketing costs: This includes everything you spend on advertising, social media, website maintenance, content creation, etc.
  2. Gather your marketing results: This depends on your goals, but it could be anything from website visits and social media engagement to leads generated, and sales closed.
  3. Do the math: Take the revenue you earned from a specific marketing campaign (like a Facebook ad) and subtract the cost of that campaign. Then, divide that number by the cost of the campaign, multiply by 100, and you’ve got your ROI percentage!

 

For example, let’s say you spent ₦50,000 on a Facebook ad campaign, which resulted in ₦200,000 sales. Here’s how to calculate the ROI:

  • (₦200,000 – ₦50,000) / ₦50,000 = 3

  • 3 * 100 = 300% ROI

That’s a pretty awesome return! But remember, not every campaign will have such impressive results. That’s okay – the goal is to understand your average ROI across different channels and then work on improving it over time.

 

Want to Track Your Metrics More Effectively? 

Download our free guide, “Essential Key Metrics Every Business Owner Should Track,” to learn more about the key metrics that can drive your business success. [Download Now]

 

Step 2: Set SMART Goals

Aiming for Success, Not Just Spending

Once you have a handle on your current ROI, it’s time to set some goals. But not just any goals – we’re talking SMART goals.

What are SMART goals? It stands for:

 

  • Specific: Instead of saying “I want more website traffic,” try “I want to increase website traffic by 15%.”
  • Measurable: Make sure your goals can be tracked with numbers. For example, “generate 10 qualified leads per month” is measurable.
  • Achievable: Be realistic about what you can accomplish. Don’t set yourself up for disappointment with unattainable targets.
  • Relevant: Your goals should align with your overall business objectives. Don’t focus on increasing social media followers if your real goal is to boost sales.
  • Time-bound: Set a deadline for your goals. This creates a sense of urgency and helps you stay on track.

 

Here are some examples of SMART marketing goals:

  • Increase website traffic by 15% in the next 3 months.
  • Generate 10 qualified leads per month from social media by the end of the year.
  • Increase customer satisfaction ratings by 10% within 6 months.

 

By setting SMART goals, you’re giving your marketing efforts direction and purpose. You’ll know exactly what you’re working towards and how to measure your progress.

 

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Step 3: Focus on Your Best Channels

Not All Marketing is Created Equal

Have you ever heard of the 80/20 rule? It’s a simple idea that says roughly 80% of your results come from 20% of your efforts. In marketing, this means that some of your channels are likely working a lot harder than others.

For example, you might be getting tons of website visitors from your Facebook ads, but hardly any leads. Meanwhile, your email newsletter might be consistently bringing in new customers. This is why it’s crucial to identify your top-performing channels so you can focus your energy (and budget!) where it matters most.

 

How to find your marketing all-stars:

  1. Look at your data: Dig into your analytics to see which channels are driving the most valuable outcomes. This could be website traffic, leads generated, sales closed, or even customer retention.
  2. Don’t forget the phone: If you’re using PressOne to track your calls, you can get even more granular insights into which marketing campaigns are leading to the most phone inquiries and conversions.
  3. Prioritize and reallocate: Once you know which channels are your MVPs (most valuable players), consider shifting more resources towards them. This might mean investing more in Facebook ads if they’re generating the most leads, or focusing on improving your email content if that’s where you’re seeing the most sales.

 

Remember, this doesn’t mean you should completely abandon underperforming channels. But by prioritizing the ones that are truly working, you can get the most out of your marketing efforts and learn how to increase marketing ROI.

 

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Step 4: Optimize, Optimize, Optimize

Get the Most Out of Your Marketing Efforts

Marketing is not a set-it-and-forget-it kind of thing. It’s an ongoing process of testing, tweaking, and refining. Even small improvements can have a big impact on your ROI.

 

Here are some simple ways to optimize your marketing:

  • A/B test your ad copy: Try out different headlines, images, and calls to action to see what resonates best with your audience.
  • Refine your email subject lines: Experiment with different approaches to see what gets more opens and clicks.
  • Review your website content: Make sure it’s clear, concise, and easy to navigate.
  • Analyze your call scripts: Are your sales reps using language that connects with potential customers? Are they addressing common questions and concerns effectively? PressOne can help you with this by analyzing call recordings and providing insights.

 

The key is to approach optimization with a data-driven mindset. Track your results, analyze what’s working (and what’s not), and make adjustments based on what the numbers tell you. This continuous improvement process is the secret to long-term marketing success.

 

Further Reading: 10 Ways Call Recordings Can Help Your Business

 

Step 5: Leverage Technology

Use the Right Tools to Work Smarter

Remember when we talked about tracking your numbers? Well, trying to do that manually is like building a house with your bare hands – it’s possible, but it’s going to take a whole lot of time and effort.

That’s where the right tools come in. They’re like your trusty toolbox, full of handy gadgets that make the job easier, faster, and more accurate.

For example, PressOne Africa offers call tracking and analytics features that can supercharge your marketing ROI. Here’s how:

 

  • Track calls from specific campaigns: See which ads, emails, or social media posts are driving the most phone calls.
  • Analyze call recordings: Identify patterns in customer conversations to improve your sales scripts and address common questions or concerns.
  • Measure call conversions: Know which calls are turning into leads or sales, so you can focus on the most effective strategies.
  • Integrate with your CRM: Connect your call data with your customer relationship management system for a complete picture of your customer interactions.

 

Ready to Take the Next Step?

If you’re ready to take control of your marketing ROI and start seeing real results, PressOne Africa can help. Check out our website or sign up for a free demo to see how our call tracking and analytics features can transform your marketing efforts.

 

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Conclusion On How to Increase Marketing ROI

In this guide, we’ve walked you through five essential steps to increase your marketing ROI.  Improving your marketing ROI is a journey, not a destination. It takes time, effort, and a willingness to learn and adapt. But with the right tools and strategies, you can achieve the results you’re looking for. So, take a deep breath, grab your toolbox (and your phone!), and get ready to start seeing a real return on your marketing investment.

 

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