It goes without saying that every business aims for growth at some point during their career. One of the major aspects of business growth is boosting your return on investment, or ROI.
How does this happen? The answer is simple – by boosting your income and diminishing your costs. So, if you are in the position that you are earning more than a dollar for every dollar invested, then you are heading in the right direction for growth. In the end, the greater your ROI is, the simpler and quicker it will be for you to measure your sales and marketing efforts.
Increase Profits with this ROI Formula
So, what do you need to in order to increase your ROI? An ROI formula. Monitor every single thing related to your marketing investments. This way, you’ll know what your current ROI is and what works best for you. Then, you can implement these five ROI tactics to truly become profitable.
1. Implement upselling and cross-selling
Upselling and cross-selling are proven tactics for boosting your ROI. The former offers a better version of the product that you are selling, while the latter offers products that are related to the one that your customer is buying.
Upselling is something that Amazon has been doing well for a long time. Let’s say you are buying a laptop. Eventually, you will be asked if you want to upgrade your memory card or purchase a superior one. Some people will see this as a logical step, but if you show this message on a daily basis, your customers will be up to spending a little more money.
As for cross-selling, this is something that food chains such as McDonald’s are pros at. It’s basically all about offering the customer something different that is still related to the original product they have purchased.
This is where the well-known questions come in, such as “Do you want fries with that?” or a more subtle one, “Will that be all?” It’s a great way to drive your customers to take another good look at your menu.
2. Determine what your crucial metrics are
It is essential that you are well-aware of which metrics are most important to your business.
For starters, you are definitely going to calculate and optimize your sales. Next, there are also leads and traffic. When it comes to the latter, you must remember that not all of it is equally formed. The traffic that is targeted to your sales pages will affect your ROI much more than any other section of your website.
What you need to do is analyze the data and figure out the best solution to problems you find. Then, make it even better.
For example, you can take a good look at your blog posts that are near the top when it comes to your target keyword and then create high-quality backlinks in order to get your content to the top.
3. Think about online business loans
It is pretty common for businesses today to decide on an online business loan as a financing option. Many online lenders use modern technology and algorithms to evaluate traditional credit standards, like cash flow or personal credit score, as well as non-traditional metrics such as social media engagements and customer reviews.
Many mortgage brokers in Sydney use this type of “new” technologies because you can deal with your capital much more quickly and easily than when it comes to banks or credit card unions.
You should hire a professional to be certain your loans are properly set up for days to come. This will ensure you don’t have any future problems with valuations and servicing.
4. Automate everything
If you really want to be efficient and have a maximum ROI, you should automate everything and let the software do its job for you.
For example, a great solution when it comes to automation is an email auto-responder. It sets up a string of emails to be sent at intervals you determine are the best responses to an incoming email. It’s basically leaving your operations on autopilot while creating value and instilling trust to your audience.
Basically, it is all about saving time. The simplest tools, like the ones that schedule your social media posts, can help you focus on more important aspects of your business.
5. Give headlines the attention that they need
When someone comes to your website, one of the first things they pay attention to is the headline. This basically means that if you aren’t putting enough effort into creating headlines, which are bound to engage users, then you are certainly going to experience higher bounce rates than you would like.
The largest percentage of people who abandon your website never come back. So, it is essential to focus on converting them the very first time they stumble upon your site.
Thinking about recurring visitors only comes later in the process. So remember, even a simple element such as an engaging headline can have a huge impact.
By implementing the right tactics, you can generate better ROI and make your business a lot more profitable.
Upselling and cross-selling are old tactics that still work well. There is a lot of analyzing and making use of the right metrics. Automation also helps a lot and sometimes it’s the smallest of things, such as your headlines, that can make a difference. Finally, think about online business loans in order to be completely set up for the times to come.
This is a guest post from Nick Brown.