A vigilant business owner constantly calculates the returns on their investments (or ROI). While calculating costs and profits might seem pretty straightforward in theory, some businesses have trouble determining ROI for their marketing efforts. The key is to implement a marketing plan that clearly shows you a return on your investment.

Calculating ROI on Your Marketing Efforts

Businesses need to know what’s working and what’s costing money. Calculating your marketing ROI allows you to adjust; If your spending is higher than your ROI, reduce efforts or refocus your investment in another avenue – not every marketing path is a good choice for every business. If your ROI is going through the roof, you may choose to expand marketing efforts into new avenues to boost profits even further.

You’ll find ROI expressed in a ratio or by a percent increase. For example, if you spent $1000 on digital marketing to get $1000 in sales, you would have an ROI of 1:1 or 0%. You can find your own ROI by taking your sales growth, subtracting the marketing costs, and then dividing that total by the marketing cost. Voila. There you have your ROI.

Adjusting for Poor Marketing ROI

There are many facets to marketing, and they certainly don’t work the same way for every business. From traditional advertisements and billboards to digital ads and social media, there are a ton of routes to take. Should you find that your marketing efforts aren’t yielding the results you want, the best advice we could give is to try something different!

Think about your audience: what do they do in their spare time? Which online platforms are they using? Do they like to do a lot of research, or are they looking for a quick solution? Often these factors can determine if your promotional dollars are better spent on a radio commercial or finding the perfect Instagram influencer. So if you invest a few bucks in Facebook ads only to find out your audience is on Twitch, fret not. Make some adjustments and give it a little time.

Adjusting for Success

So you’re getting phone calls, online impressions, and applications on your website – all thanks to your marketing. That’s great! This means the methods of communication your company is choosing are working well. Now is the time to step on the gas! Think about the goals you want to see fulfilled in your company over the next year. Does your company need more customers? More employees? Are you looking to expand into a new location? Take this momentum out for a spin and capitalize on your success!

Not sure where to start? BadCat can help! Contact us today to start seeing a positive ROI on your digital marketing efforts!