As we head in to 2021, being data-driven is no longer enough to generate an exceptional marketing strategy. The days of looking in the rearview mirror, aka monthly reports, are coming to an end and insight-based decisions are finding their way to the surface.
Enter Return on Investment. Why is ROI so imperative to successful marketing you ask?
Get the Most out of Every Dollar
No business should be willing to toss dollars down the drain, but small businesses have to be even more diligent at tracking the dollars they spend. Understanding your marketing ROI will provide key insights into which strategies resonate with your target audience the most. Conversely, it will allow you to find the strategies that aren’t pulling their weight. Armed with this knowledge, you can confidently pull marketing dollars from the duds and put them to good use elsewhere.
If you’re still trying to calculate this blindly, you’ve likely set yourself up for failure and will ultimately cost yourself valuable dollars.
Whether it’s your responsibility to produce results, or you’re diving into the work of someone else, ROI will have you covered. Many small businesses are shifting toward a more revenue-focused approach for marketing accountability, after all the point of marketing should ultimately be to generate revenue, either directly or indirectly.
That being said, ROI doesn’t have to solely be used to calculate conversions. There are plenty of metrics that can be measured:
- Cost per lead
- Brand impressions
- Channel reach
- Conversion ratio
- Customer lifetime value
As the pandemic threw a curveball to all marketing plans in 2020, re-assessing how to tackle 2021 should be one of your top priorities. Creating a custom marketing strategy tailored to your individual business sounds like a daunting task, but it doesn’t have to be.
You know your business; Collective Alternative knows marketing. As a full-service marketing, advertising and public relations firm CA specializes in producing results, being fully transparent in all that we do, and helping your small business stand out. Want to learn more about how to increase your marketing ROI or what a full marketing strategy looks like?
Schedule a FREE 60-minute strategy session with Collective Alternative today.