Many small businesses have sworn never to market their products because they believe the return on investment (ROI) is not worth the effort.
But yet businesses are beating their sales target yearly and doing millions thanks to their marketing efforts.
The problem is not that marketing does not work; the problem is that many small businesses simply have not found a way to effectively increase their ROI.
In this article, we share some tips and strategies that have been proven to increase the marketing ROI for small businesses.
Five (5) Tips To Increase Small Business Marketing ROI
1. Review Your Marketing Goals
If your marketing campaigns have not been bringing enough return for your investment, it’s time to review your goals.
Your marketing goals need to be stated and easy to understand before you start any campaigns.
Unfortunately, many small businesses start marketing campaigns without any end goal in mind.
This lack of clarity of their objectives results in overspending without any measurable achievement at the end.
Small businesses must state what their goals are for each campaign and each channel and ensure that they all align with their overall marketing objective for the period.
2. Optimize Campaign Reach
Imagine going out to fish without any idea the type of fish you want to catch. At the end of the day, you would spend your time and effort catching different types of fish, the majority of whom you cannot make use of.
This is also true in marketing.
You must optimize your campaign to reach a targeted audience.
The more specific you are about the type of customer you want to reach, the easier you can reach them and the less expensive they are to reach.
Spreading your marketing budget too wild is not a luxury a small business can afford. So, you have to be more strategic about who exactly you want to reach and focus your spending on reaching them.
3. Experiment! Experiment!! Experiment!!!
You cannot do the same thing over and over again and expect different results. But many businesses are stuck running marketing campaigns that bring in smaller and smaller returns.
Because they’re afraid to test new strategies, afraid to invest in running experiments.
Yes, your marketing budget may be tight but, it is an effective way to ensure that your business increases its returns.
The marketing campaign that brought in millions last month may bring in less this month.
So, you have to be constantly trying new things, running new tests to ensure your marketing is an asset, not a liability.
4. Offer Value
Nobody is looking forward to your marketing email about your new products.
People want value.
So always make sure you’re offering your customers and target audience the value they want.
The language and content may change, but one thing that must stay consistent is value.
Offering people, the value they want is the oldest strategy to getting the value you want in return.
5. Measure The Right Metrics
Measuring the performance of your marketing campaigns is the only way to determine the ROI it’s generating for your business.
But measuring the wrong things like the number of likes you got on your posts on social media or the number of views your blog post had is the wrong way to determine ROI.
Instead, focus on metrics that show real value generated, that are in tune with the goals you set in the beginning.
Metrics like Customer engagement, Lifetime value, cost per acquisition, conversion, etc.