Boost the Return on Investment ROI of an Online Company
Any kind of online business, no matter how small or big it is, will always look for successful online marketing strategies. These strategies are designed by specialists and usage of a vast variety are employed to bring the needed attention to the business to Boost the Return on Investment ROI of an Online Company.
When the topic of metrics and ROI comes up, it is often thought about how it can apply to small online businesses. Large online businesses make it a point to focus on metrics, measurements, and ROI. Also, they have the needed functions, departments, and individuals with titles of metrics, research, analytics, organizational effectiveness, research, and other labels which may not exist in a small online business. So the question arises;
How should small businesses focus on ROI beyond analyzing the ROI for capital investments, which is often well known by them?
ROI is one crucial element that a business should never lose sight of, especially small businesses as they do not have the luxury to take a monetary loss. Profit, being the main objective of a small business, increases the need to focus on Return on Investment. Keeping in mind these 7 tips can answer your question on how to boost the Return on Investment (ROI) of an Online Company, especially small scales.
7 Tips to Boost the Return on Investment ROI of an Online Company
1. ‘Word of mouth’ is the key to success
Small online businesses will spend most of their money on this factor as it is important for the customers to know that a new business exists and to be driven to it by the owners of it. This doesn’t just apply to a new business as the growth of the customer base is very important to keep the business successful.
The simplest and strongest method of lead generation is word of mouth and a recommendation from someone known is way stronger than any campaign run by a business. Experts suggest that the cost that goes into gaining a new lead can be 6 times as much when compared to the cost of returning a customer, which means that the return of a customer equals to more profit for you. Recommendations by them can benefit you by bringing in more customers which automatically means more business.
For example, a customer that likes your business will not only buy products from you once but also return to buy more. They will also recommend your business to their friends who might develop an interest in your business and decide to invest! Presto! You have made a great profit without investing a large amount or running a campaign.
2. The SEO magic trick
The internet is what everyone turns to, to look up goods and services, before actually visiting a business. It doesn’t matter if your potential customer is using Google or Bing, but what is important is that your business should show up as high as possible in the search results.
Research suggests that people do not scroll much while looking for a result and obviously the impact decreases drastically if your business doesn’t turn up on the first page of the search results.
SEO or Search Engine Optimization services are used to make sure that your page shows up higher in the search rankings. Once the potential customer clicks on the search link to your website, it is time for lead conversion. Changing a potential customer into an actual customer isn’t easy and the conversion rates are often low. However, SEO is a widely used tool for getting the best ROI. The cost per lead is indeed very efficient, and the returns will steadily increase for the patient businessman.
3. ‘Pay per Click’ and win!
Pay-per-Click (PPC) is the advertising based on a fixed amount for every click by a potential customer and can be used to steer the inexperienced customer to your business. PPC was once in decline but now since search engines like Google show the PPC links in their search results, its importance has increased.
Going back to the previous example, when a potential customer does an internet search for your type of business, good SEO on your website will sure show your business at the top of the results page which will increase the chances of the customer visiting your website.
By using the right keywords and PPC, one could ensure that the business will be shown on the top of the search page, which will further increase the chances of the customer visiting your store. For added exposure, you can use PPC on popular websites and blogs.
4. Social Media is king
Social media is a powerful force in not only society but also business to boost the Return on Investment ROI of an Online Company. Running a campaign on social media or using a Facebook page to your advantage can drive customers to your business. Though measuring the exact ROI from social media is difficult, the recognition will help in the long run.
Positive reviews and recommendation from customers and their friends on social media can give a very positive look to your business. Social media sites like Google plus and Facebook can impact your ROI and also encourage your customers to write positive reviews on social media platforms like Foursquare, Yelp, Google Plus Local, Zomato, etc.
5. Email Marketing can boost numbers
The once most powerful and widely employed tool, email marketing, isn’t as widely used anymore even though it has a pretty impressive Return on Investment ROI of an Online Company. But one crucial tip should be remembered: do not spam your customers! Instead engage the potential customer after their email ID has been acquired by using the other techniques such as PPC, social media, SEO..etc
Keeping your customers engaged and informed and not spammed by your business can go a long way in boosting numbers.
Going back to our example, if your business is having a sale or a new inventory is added, or some limited edition items have come in, an email to your customers will remind them of it and inform them of this new event. Your customer is likely to go through your merchandise and make a purchase or if it’s a sale. The customer may buy the common use item.
6. Brand Strength and recurring revenue
Brand recognition should be noted as an investment in itself as potential customers are sure to be more favorable to the business whose name they are familiar with. Brand recognition equals to an ROI in itself because the better your brand is recognized by potential customers, the easier the lead generation will be. Along similar lines, having a loyal customer base is important and most business would work hard for a position like that. What is required is not just recurring revenue from the loyal customer base, but also an expanding set of customers.
Recurring revenue when it comes to consumer products comes from repeat purchase. A customer may buy a product first because of its packaging and then next time because of its efficiency. Recurring revenue, of course, brings in most benefit only when its frequency is noted.
7. Account Keeping
Small business owners often overlook thoughtful and rigorous accounting. After several plans are run, the ROI of each plan is compared individually which show good performance but the overall ROI may have gone for a hit due to short-term accounting and bookkeeping.
The customers that have been encouraged by our PPC and email campaign strategies may buy several of our products at a discounted rate which will result in good cash flow and a tidy sum at the end of the day. Going through the accounts, if we see that the amount which a product was sold at is lower than the amount it was sold for last year, the ROI is in the gutter even though we have a good amount of money in our hands.
An investment is crucial for starting a business and the ROI on this investment should show up in operation.
Never letting your focus shift from the ROI of the online marketing campaign is key to a successful business, for both short and long term. Using these strategies can definitely help you achieve a successful ROI.