Did you know that, according to RASK Education, one of the most versatile and simple ways of finding out about the profitability of an investment is by calculating its ROI? If you run a small- to medium-sized business in Australia, measuring ROI is important.
However, if you’ve recently noticed that your ROI has been a bit lower than you’d like it to be, this can be frustrating.
Here you are, spending large amounts of money without seeing much return. What you need is to increase your ROI.
But knowing how to increase your ROI can be tricky. Maybe you’ve already tried a few strategies and you’re feeling stuck. This can be stressful—not to mention, it can also mean that your business in the services or retail industry is losing money.
That’s why we’ve put together this article. In it, you’ll learn about the best methods you can use for increasing ROI.
Finally, you can get some of that money you’ve spent back, making more money and making your business more successful than ever. Read on to learn more.
Think About Your Goals to Increase ROI
To increase your ROI, you first have to think about your revenue goals. This way, you can create a strategy that’s tied to an increase in revenue, determining what success looks for you and outlining the steps needed to get there.
For example, when you’ve just started your business, your goal will likely be to achieve profitability.
As your company grows, your goals might change to growing your company’s revenue and figuring out how to build reserves that can be useful in the future.
By knowing what your goals are, you can focus on making investments that will lead you closer to those goals.
Instead of spending money on a new hire or tool that makes more sense later down the line, you can spend money where it will count now, based on where your company is currently.
Focus On Metrics to Improve ROI
Another way to improve your ROI is by focusing on metrics. If you’re investing in new marketing strategies, but they aren’t actually working, then your ROI will be low. If you focus on metrics, you can learn what’s working and what isn’t.
That way, you can continue to invest in strategies that work while no longer spending money on the ones that don’t.
To do this effectively, assign a unique URL for every promotional channel you use. This way, you can determine which of your campaigns are performing best.
With metrics, you can learn about how your business is doing when it comes to profit per customer, marketing program performance, and revenue.
Make It Personal
When it comes to how to generate leads, it’s important to make it personal. Once you’ve gathered enough data from the last step, you’ll know what the patterns, interests, and journey of your customers are. Then, you can make every interaction they have with you personal.
This will make a huge difference in how many loyal customers you get and how much you maximize sales.
In fact, 84% of customers say that, if you want to win their business, one of the most important factors is treating them like a person instead of like a number.
The different types of content you can make personal include personalised videos, email newsletters, and content on your website that focuses on the actual interests and needs of your customers.
Expand Your Market
Another way to increase your ROI is by expanding your market. There are several ways you can do this. First of all, you can add complementary services to products you’re already selling. This will keep your customer acquisition costs low.
This is because loyal customers will continue to buy your current products, whilst new ones will be drawn to the new products you’re selling.
Another way to expand your market is by extending the geographic reach of your business. If you’ve noticed that your competitors aren’t serving areas just outside your region, you could easily tap into this underserved market.
You could also enter into a sales agreement with another company. This is a situation in which another business could sell some of your products.
For example, if you run a clothing store, you could make branded t-shirts for a company looking to improve their branding, which would then sell these shirts to their own customers.
This wouldn’t add too many expenses on your end, as you’d already be making the shirts anyway before branding them.
Boost Business Growth With Current Customers
In addition to expanding your market, it’s important to focus on your current customers to see how you can boost business growth with them. Especially if you don’t want to start a whole new marketing strategy to find new customers, this will save you money.
To do this, you want to encourage your current customers to continue buying products or services from you.
Start by continuing to engage with them through email newsletters and over social media. If you provide them with freebies or special discounts when you do this, they’ll feel appreciated.
As a result, the next time they’re looking for a product or service in your industry, they’ll go to your business first.
Because they know about your business already, you won’t have to spend too much money on marketing to them.
Raise Your Prices
It can seem a bit counterintuitive to raise your prices. After all, you may be thinking, “If I raise my prices, I’ll lose the customers I have now.” But this isn’t true at all. Sure, you might lose a few customers, but many will be willing to pay more for products or services they love.
Additionally, some people prefer to pay higher prices because this is a sign to them that what they’re getting in exchange for their money is high-quality.
The result? You’ll get new customers who prefer to pay a bit more. This means you’ll make more money in three ways.
First, you’ll make money because you’ve expanded your customer base. Second, these customers who have more money will be more likely to buy multiple products or services from you instead of just one.
Third, when you raise your prices in the future, these customers who prefer to spend a bit more will be happy to pay for these higher prices.
As you can imagine, this has a huge impact on your ROI because raising your prices barely takes any investment at all on your end.
Use the Right Technology
If you aren’t using the best technology available in your industry, then chances are you’re losing money. Whether this is a metrics-tracking technology that can help you make more sales, or an app that your customer expect, you should invest in technology now.
Many technology solutions are affordable. For example, if you’re in the services industry, you can easily create an app that makes it easier for your customers to customise an online order.
This is a small investment, but you’ll get a big return on it because customers will be more likely to order from you now.
Reduce or Eliminate Charges for Shipping and Handling
In the modern world of Amazon Prime, many customers now expect to pay nothing for shipping and handling. For this reason, you should think about reducing or eliminating these charges when doing online sales.
Even though it may seem like you’d lose money, the opposite is in fact the case.
When customers see that they’ll have to pay for these charges, they’ll be more likely to abandon their shopping cart. You might notice if you take a look at your business’s metrics.
If you make this change, you’ll suddenly have more customers overnight.
It’s a small change that’s easy to make, which means it won’t cost you much time or money to implement it. You’ll lose a small amount of money, of course, on paying for these charges yourself, but you’ll make back far more.
Need More Information?
Now that you’ve learned about the different ways you can increase ROI, you might need additional information. Perhaps you want to learn about other strategies you can use to get more customers without spending too much money.
Or maybe you want to learn about the best marketing strategies to use in your industry.
Whatever information you need, we can help. At Zipzipe, we’re experts when it comes to sales strategies and digital marketing. We also offer digital marketing services. To learn more about how we can help you, contact us now.