Marketing can be confusing and expensive, so once you get into it, you want to know that you’re going to see a return on your investment. If you put a certain amount of money in, you should hope to get a certain amount of money out. If you’re spending money on marketing and sales, then you should get some kind of a return for that.
Your Marketing ROI — Let’s Talk (Realistic) Numbers
The simplest way to calculate your marketing ROI is by looking at sales growth that you can attribute to your marketing efforts. A return of 5:1, or 500%, is really good. In that case, for every $1 you spend on marketing, you make $5. ROI higher than that is possible, but that’s pretty standard. Ultimately, ROI depends on the industry you’re in and whatever the current climate is.
Check Your Expectations: Timelines & Results
Marketing results don’t happen overnight. Generally, if you’re investing in marketing, you have to wait a while to see results. It can take several months, or even a year or more, before you start to see a real impact from your marketing.
So many businesses say that they want to start with marketing today and see results tomorrow. That’s not going to happen because it takes time to get things going, and to find out what actually produces results for your business. What works for another business isn’t necessarily going to work for your business, and there’s always some trial and error required before you can really build momentum.
Some of our most successful clients have been with us for years, and when we found something that worked for them, you better believe we stuck with it! And the results they’re seeing now are beyond what they imagined.
But again, this doesn’t happen overnight. Data tells you results, and no matter what activity you’re doing in your marketing, it’s going to take some time to figure out what the ROI is. For instance, if you’ve only been running social ads for a couple of months, it’s almost impossible to determine what your ROI is. If you’ve been doing it for a year, though, then you have more data and can figure out what your ROI actually is. Results come over time, so give it time — and make sure you have a realistic expectation about those results.
Set Some Goals and Make Them Happen!
So many businesses have lofty goals, but don’t strategize ahead of time. As a result, they waste money because their marketing falls flat and doesn’t produce the results they want.
To combat this, we always set goals annually, plan quarterly, track monthly, and execute weekly. In doing this with all of our clients, we can help lead them toward success, so they can grow their businesses. That’s our mission, after all!
Want to work with our team and see results from your marketing? Get in touch!