Having a good ROI is a very significant aspect of digital marketing for your business. You’ve finally decided to invest in digital marketing, yet you still only see low ROI rates. Why is that?
When your business sees a low ROI, it can be very damaging to your income, profit and marketing budget. Fixing it should be one of your top priorities, but if you don’t know what’s causing it, you won’t know how to fix it. While the problem may differ by business, here are the top three reasons why your digital marketing package could be having a low ROI.
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Why Your Digital Marketing Package Could Have a Low ROI
Every business will have their own complexities in regards to a low ROI, but there are some problems that occur more often than others. While not all three of the problems below may be impacting your ROI, it’s certainly worth double checking.
1. Unclear Goals or Target Audience
Your goals and target audience need to be clearly defined if you want to have an accurate idea of your ROI. In fact, this should really be the first thing you do as part of your digital marketing strategy. Take time to determine what your goals are and who your target audience is. If your digital marketing company doesn’t do this with you, your ROI might not be high.
Having a clear goal in mind helps you know what key performance indicators to track. It determines what aspects of your campaign to focus on and how you make adjustments to improve your digital marketing campaign’s performance.
Additionally, if you don’t have a well defined target audience, you won’t be able to direct your digital marketing campaign in the right direction. You need to know who you want to attract so that you can create content that is relevant to them.
2. Complicated Processes
One of the fastest ways to decrease your ROI is to make your process or message overly complicated.
Customers want it easy. They don’t want to have to do any extra work and if you don’t make your digital marketing campaign as easy for them as possible, they won’t do whatever it is you want them to do. Whether this is buying a product or contacting your team, a customer won’t be interested if the entire process is too complex or time-consuming.
It’s vital that your digital marketing campaign is clear and easy to follow. Ensure your customers understand your message and what you want them to do. If they do, they’re much more likely to follow through and you’ll see your ROI increase.
Keep things simple. Your messages should only be as long and wordy as necessary and if you can, make them even shorter. Don’t include anything that isn’t relevant as this can distract customers or make them turn away.
While you might think your call to action is catchy and cool, customers might not be able to determine what you want them to do. Too many graphics or copy that is too wordy will confuse them and send them somewhere else.
Think of it this way, if your call to action is to subscribe to your email newsletter, you wouldn’t want to include a note about purchasing a new product right now. Instead, keep the focus around subscribing and include graphics that are relevant. There’s no need to show customers a video about your products or a photo of your latest project before they sign up.
3. Quantity is Placed Above Quality
Maybe you feel like your business could benefit from more content. In an effort to meet your digital marketing goals and improve your business, you start putting out as much content as you can.
While this can be effective, it doesn’t necessarily result in a high ROI. There’s a difference between a high quantity of content produced and high-quality content that converts.
It takes experience to know how to balance both in digital marketing and when it isn’t done correctly, it can lead to lackluster results.
Always focus on the quality of your content. The quantity can be increased as you see fit, but don’t risk putting out low quality content just to meet a certain quantity. Poor quality content can have a direct effect on your ROI and can lead to consequences in other aspects of your business’s online presence such as rankings in search results.
Improving Digital Marketing ROI: Digital marketing Strategy Tips
Here are a few extra steps you can take to improve your digital marketing ROI.
1. Create Content Your Audience Wants
Irrelevant content won’t help you achieve your goals. As mentioned, don’t publish low quality content for the sake of meeting quantity-related goals that won’t produce many results.
Customers are faced with irrelevant or low quality content every day. By creating content that your target market deems desirable and helpful, your business stands out. You can do this by adjusting your content based on demographics, interests, gender, and location of your target market.
2. Avoid Vanity Metrics
Every business likes to feel good about themselves, but this won’t help your digital marketing campaign. Vanity metrics only look good on the outside, but they won’t provide an accurate look into the success of your digital marketing campaign or your ROI.
In fact, they distract from the metrics that matter and pull your attention away from what’s actually important.
Here are some vanity metrics you’d want to avoid:
- Site visitors
- Followers on social media
Instead of these, you should shift your focus towards customer engagement metrics. These can help you better direct your digital marketing campaign and improve your ROI. Here are a few examples:
- Repeated page views
- Conversion rate
- Comments on content
3. Use Predictive Analytics In Addition to Google Analytics
Google Analytics are an important tool for any digital marketing campaign. Predictive analytics, however, are especially useful. They can help you predict and measure your ROI by using artificial intelligence and algorithms.
Predictive analytics provide you insight about the possible behavior of your future customers. They guide you in the right direction as you determine a marketing strategy and improve your ROI.
4. Test and Adjust
No online marketing campaign is perfect forever. Over time, you’ll need to make regular adjustments or the effectiveness of your digital marketing campaign can deteriorate.
Routine testing ensures you know how and where your campaign should be adjusted to continue delivering a high ROI.
There are many different types of tests you can try on your digital marketing campaign, but one of the most popular is A/B testing. It’s a free tool available in Google Optimize and allows you to test two different versions of a landing page to determine which one performs better.
Adjustments are necessary to the efficiency and health of your campaign. They don’t mean your campaign is poorly made. In fact, digital marketing campaigns that are adjusted and tested often perform much better and have a higher ROI than digital marketing campaigns that are only adjusted occasionally.
If your digital marketing package isn’t being created and implemented properly, you could be seeing low ROI. However, that doesn’t mean that deciding to invest in online marketing over traditional marketing was a mistake. There are certainly ways to run digital marketing campaigns in an effective and successful manner to achieve higher ROI for your business.
Ask us today so we can help you come up with a digital marketing strategy for your business that truly works!