Using e-commerce is no longer just an option. For businesses of all sizes, working to improve the ROI of your digital marketing investment is an important task. necessity.
In other words, the online marketplace represents the future of retail. As a result, companies from every industry are adopting it more and more every year.
Of course, e-commerce retail activity struggles without the reliable help of digital marketing. Therefore, the online equivalent of a traditional advertising strategy includes a wide variety of strategies. These include organic content and SEO for SEM, social media, PPC ads, email, influencers, ambassadors, partners, and more.
That being said, digital marketing is not an automatic win. On the contrary, in many cases, spending on online advertising and marketing budgets does not match the increase in revenue.
Here are some simple yet effective recommendations for improving your ROI in various areas of your digital marketing when digital marketing budgets aren’t generating enough returns.
Table of Contents
1. Use tools to set meaningful goals.
Before moving on to more subtle technical tools, let’s start with the main marketing tool for improving your ROI: goal setting.
Simply creating a goal to work towards can do wonders for motivating the marketing team and helping them meet deadlines.
However, not all goals are the same. Therefore, you want to create meaningful goals for your marketing that will help your team work towards real, productive results. This is where SMART goals come in. This abbreviation means:
- Corresponding; and
- Time limited.
A self-explanatory concept takes a goal and turns it into a highly specific task for your team right here and now. So take the time to check each of your goals with the SMART Goal Filter. If the elements aren’t enough, take the time to fix it before committing resources to the effort.
2. Use data analytics to track your ROI.
ROI stands for “return on investment”. The concept uses a simple mathematical formula that looks something like this: Your profit divided by your initial cost (multiplied by 100 if you want to express it as a percentage).
For example, if a marketing team has a $1,000 budget and generates $3,000, their ROI is $2,000 / $1,000 x 100 = 200%.
Essentially, after deducting costs from the script, the marketing team was worth twice the cost of the initial investment.
There are many numbers that help to run a business. However, ROI is one of the most important ones. It helps to know if the net income of a business or department confirms its efforts. Unfortunately, it’s hard to calculate ROI without the right tools.
One of the most important ROI tools that every company needs is an analytics tracker. For example, it could be a simple option like Google Analytics. Popular software is a great way to get an overview of important data.
However, if you want to take your data analytics to the next level, you can use a more advanced solution such as triple whale. This app collects and visualizes data from Shopify, marketing campaigns, paid social platforms, and more, providing the real-time insights you need to scale your eCommerce brands.
This data allows brands to correlate purchases with customer journeys, to determine the actual performance of various digital marketing and advertising channels. Hence, you can research things like LTV (Lifetime Value) of customers acquired through various campaigns.
Analytics tools are a great way to track the tangible results of your digital marketing efforts. Use them to understand important expenses. For example, which ads convert into purchases, does the content on your site generate organic traffic, and which pages on your site convert the most.
3. Improve your internal search engine optimization to boost your online profile.
If you find that your site is lacking in organic traffic, you may need to invest in more informative SEO tools to improve your ROI. These are analytics tools that take into account the key elements that make web pages naturally rank higher in search results.
There are many SEO tools available, including popular options such as Arefs. These are powerful all-in-one SEO packages that provide key insights to improve your organic digital marketing content.
For example, you can use them to audit your own website. This analyzes your current content and takes into account factors such as excessive redirects or slow download speeds.
Similarly, you can also use these tools to look at top performing competitor pages and source keywords and links to include in your own content.
4. Hone the power of your social media mentions.
Social media is a universally recognized digital marketing tool.
However, many companies are recklessly treating this tool like a magic bullet, throwing money at social platforms. without evaluating the outcome. This often leads to unknown (and mediocre) results that can lower your ROI.
It’s important to set up social media analytics tools that track your performance over time. Most platforms have built-in analytics options like Facebook. meta pixel. Like an in-place analytics tool, they can show you important digital marketing data.
How well does paid advertising work? What actions do people take on your company profiles? What posts resonate with subscribers more than others? This information may (and should) guide your future strategy.
Make sure you work smarter, not harder
Increasing your ROI can take a lot of time and attention. Organizational tools like this help reduce the workload and improve the quality of the information you get from your marketing data.
From quality goals to data collection software and organizational analytics dashboards, there are many tools to measure the effectiveness of your digital marketing. However, the effort required to set up digital marketing ROI tools is well worth it. They can help you continually identify weaknesses and make adjustments to optimize your online promotion efforts (and therefore your ecommerce revenue) over time.