We are going to review the ROI (return on investment) formula: revenues minus expenses divided by expenses. So, it’s logical that we need to either increase revenues or decrease expenses or even both, why not? We have to study our possibilities carefully and for sure we can find pulls to improve, it’s a matter of considering some different facts.
To improve revenues has to do with increasing sales:
1) Increasing purchase frequency: have you studied your Data Base very well? Have you got a CRM strategy to remind your brand to your clients? It’s pretty important to have a CRM strategy and study the relation with our client to improve his experience. For example, when he asked for an item, are you really following this request? Are you offering an advantage for the next purchase? Are you really offering what every client needs?
2) Increasing purchase value: we have to work in cross selling actions, offer your client something else, but something really interesting for him, when he is buying, maybe with a discount or an advantage.
3) Obtaining new clients: maybe your problem is you need more clients, but where can I find them? Some ideas: Facebook campaigns (it offers a lot of segmentation possibilities), Member get Member campaign (with your current clients)….
4) Increasing client’s satisfaction: sometimes, we forget that a happy client can be our most effective campaign, he will speak about our brand to other people, and he will purchase again… And please, it’s not a matter of the Customer Service Department, it’s a company’s orientation.
To expend less, the key is reducing your campaign costs:
1) Use Inbound Marketing!! The results are not immediate but it’s the cheapest and most effective tool. Generate content, make your company specialize in something, your brand should be in the top of the customer’s mind. After that, use your own Social Media (Facebook, maybe Linkedin, Twitter, video campaign in Youtube, influencers…) to distribute your content. It’s not disruptive marketing because clients must look for you. It’s cheap because you don’t have to pay media, but you need a qualify team to generate quality content, client is exigent and he knows very well how to appreciate if content is good or not. Be careful about this.
2) Analyze all your campaign costs and results. For example, use long-tail keywords at SEM: I reduced 20% of campaign expenses in my first month working in a company thanks to this. It’s too expensive to pay for a keyword, and clients are searching by long-tail keywords more and more, and we can personalize more our message!
3) Personalize: are you still sending the same email with the same products to all your Data Base? Please, stop! You could waste your money and burn out your clients. This doesn’t work anymore! Here, we have to go back to the first point where we talk about increasing purchase frequency, have you really studied your client’s needs? To have and analyse quality data, to study customer’s behaviour and to personalize our message allow us to improve our effectiveness.
Sometimes it’s not a matter of budget, it’s a matter of analysing and knowing what your client is like, is what we need to succeed. There are no secret potions for improving your ROI but you can be confident that it’s possible.