November '20

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14 THE SHOP NOVEMBER 2020 I n the marketing world, many businesses focus on ROI (return on investment). However, when they don't get the immediate monetary results they desire, they begin to pull away from social media marketing. However, there is another side of the coin—ROI 2.0 (return on influence). Many businesses have begun investing more time and money into individuals or organizations who can represent their brand and bring credibility and value to it. Have you considered this? Either way, both ROIs have a place in your marketing strategy—you just need to keep in mind that the value of each one will be unique for your business. RETURN ON INVESTMENT If you're spending money trying to pro- mote a product or service, it's essential to be fully aware of your ROI. There are a few things to consider: Know how to budget correctly Many people think that spending thou- sands of dollars on advertising will result in a huge win for their company. Yes, more money can result in a greater ROI, but what if you don't have thousands to spend in order to acquire new customers? You need to be smart and strategic with what you have. You'll want to know as much about your target audience as pos- sible. Don't waste your money showing your ad to everyone in the world when you could be showing your ad to just your target audience. Know your KPIs & marketing goals Speaking of being strategic, you must know your KPIs (key performance indicators). These are S.M.A.R.T. goals (specific, mea- surable, attainable, relevant, time-bound) that you can keep track of as your cam- paign progresses. Without these indicators, you're making business decisions that are based on feelings instead of figures. If you aren't careful, you could be spending money on marketing efforts that end with little to no results. Measuring Your Marketing By Christopher Tompkins Weighing return on investment vs. return on influence. Return on investment and return on influence should both have a place in your marketing strategy. Return on investment measures the cost of marketing versus direct sales of products and services. Return on influence looks at how your company can position itself as a market leader and trusted ally. 14 THE SHOP NOVEMBER 2020

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