The Best Way To Improve Your Marketing Campaign ROI
An investor in a stock market should run according to two basic principles. He should buy the stock at cheaper prices and sell stock at higher prices. That is the simpler thing to understand. The difficult thing is to understand at what point a particular stock is at its cheapest and at what point is it at its highest.
When you are carrying out a marketing campaign, the situation is simpler. To get a good ROI (return on investment), what needs to be done is to minimize the cost of running the campaign, and maximize the income generated by the campaign. That much is pretty much clear to everyone. What becomes difficult is to ensure that both these can be achieved, so that the ROI is improved. Let us try to look at some of the ways in which the ROI of a marketing campaign can be improved.Know What to Measure
Like I said at the beginning, most people who talk about improving ROI know that they need to get higher ROI. But they are not always sure how to measure and more importantly, what to measure, in order to understand if their ROI is increasing or not.
The simplest way of calculating ROI is to calculate the additional sales growth, and after subtracting the cost of the campaign, dividing the remainder by the cost of the campaign. So for this simplistic formula, the cost of the campaign is an easy enough number to know and use. The problem comes when you need to calculate the additional sales. The reason for this is because the sales figures for a particular period might not clearly tell you whether they would have happened anyway, or they happened because of the campaign. That is why many companies find some way to flag off sales that came from the campaign so that ROI is easier to calculate.
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