Return on investment for beginnersBy Yulia Dianova
August 11, 2016
As a marketer, you do your best to use multiple channels to get your content in front of your target audiences. Some efforts will yield fantastic results; others will not work out so well, and you need to know which ones are bringing in customers. Once you’ve gathered that information and analyzed your metrics, you can determine your return on investment.
What is ROI?
ROI is what you get back from the investment you make.
Why is it important to know your ROI?
You need to know what will bring you the greatest return for your marketing investment so that you can coordinate your efforts accordingly and raise that return even further. In order to attract consumers and convert them into loyal customers, you need to provide them with something they want. Successful marketers use a data-driven approach (inbound marketing) to attract individuals to their brands. Inbound marketing involves putting the right content (blogs, e-books, videos etc.) in front of the right audiences at the right time. To do that, you need to know what channels are most successful at attracting your target consumers.
How do you calculate ROI?
Use the same formula you would to calculate how much money you’ve earned based on what’s in your bank account. I.e.:
Your return – Your investment
How can you improve your ROI?
- Forecast your marketing efforts. To predict which of your marketing efforts are working and may continue working in the future, you can collect data by conducting customer surveys, using industry reports and arranging focus group discussions.
- Invest only in effective channels. Not all marketing efforts are equally effective. Invest only in the ones that are proven to work the best. Substitute the ones that are not so effective with the better ones.
- Use only high-quality content. Try to create and deliver the best possible content to be both helpful and informative for your audience.
ROI is one of the most important inbound marketing metrics in your arsenal. It allows you to understand how your activities individually contribute to your overall marketing strategy so that you can increase or decrease your specific efforts accordingly.
At Axia Public Relations, our clients’ marketing needs always come first. We strive to help you make the most of your marketing efforts. Download our e-book Maximizing Your Public Relations Investment to learn more so that you can maximize your profitability and take your business to the next level.
Yulia Dianova is a public relations professional who is skilled in building relationships with target audiences. She provides counsel to organizations that seek PR help to further their growth and reach their goals. Yulia earned a master’s degree in public relations management from University of Maryland University College. She is fluent in Russian and English and is always looking for a new challenge.
Featured image credit: 123rf.com
Topics: public relations, investment
Comment on This Article