Monday, October 1, 2012

3 Steps to improve your ROI

ROI stands for Return On Investment and is a common term used when talking about an advertising or marketing campaign.  

If you have a low ROI and are looking to improve it, start with these 3 steps.

  1. Examine your traffic.  If your campaign is bringing in random visitors, the task of selling something has to start with educating them on who you are and what you offer.  This is much harder than bringing in visitors who are already interested in what you have to offer.  Even worse is when your campaign is attracting the wrong type of visitors all together.  (ie. You sell plumbing supplies and your campaign is bringing visitors looking for plumbing services.)
  2. Adjust your campaign.  It is important to fine tune your campaign so that you are bringing in highly qualified individuals who are interested in what you have to offer and are ready to buy.  You can afford to pay twice as much for each visitor if they are twice as likely to make a purchase.
  3. Optimize your conversion funnel.  The last step is conversion rate optimization.  If you have highly qualified visitors and you still have a low ROI, there is probably something that is keeping them from purchasing.  Make sure that the conversion funnel works for your visitors.  You can also use persuasion techniques to encourage them to continue.  All these changes can have a major benefit to your bottom line.