This blog post contains edited excerpts from our free whitepaper: Profit-Focused Digital Marketing. Get the full guide for more details on how to increase your ROI with digital marketing.
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According to the 2013 Inc. Digital Marketing Survey, more than half of small and medium-sized businesses with $1 million or more in annual sales revenue already use some of the most popular digital marketing tools.
There are few steps that companies need to consider when thinking about their digital marketing strategies. If used effectively, digital marketing can increase your revenues and bring costs down, making business more profitable.
1. Set Goals
First, you need to set realistic and measurable digital marketing goals and identify what specific metrics you are going to measure. This whitepaper suggests a few revenue-centered performance metrics you might select, such as Return on marketing investment (ROMI) and Cost-per-lead (CPL). Deciding on the criteria to track is the first step to increasing your digital marketing ROI.
2. Determine Budget
The next step is the budget. Make sure you don’t pick a number to invest into digital marketing just because it seems pretty. It needs to be a solid, precisely calculated budget based on your revenue goals, current performance, and tools available to you. Investing money rather than spending it will make your company more profitable and you will become the star of your marketing department.
3. Align Marketing and Sales
There’s one more thing before we get into an actual digital marketing implementation: make sure your marketing and sales teams have a clear understanding about who is responsible for what. For the best results, compose a Service-level Agreement that outlines commitments from each team, and make sure that they fulfill their promises.
4. The Funnel
Once you complete the goal setting and budgeting, it’s time to drive traffic to your content. The number of visitors is important, however, it is the quality that will make your business grow. The more qualified the traffic is, the higher visit-to-lead and lead-to-customer conversion rates you will experience. After the customer has been acquired, make sure you delight them with social interactions. They will come back for more and will improve your bottom line.
IAB reported that in Q3, Internet advertising revenues were the highest ever at $10.7 billion. Furthermore, 17% of marketers and agencies said they would be willing to spend more on digital media if that channel shows results.
Based on industry trends, we are going to see bigger portions of overall marketing budgets spent on digital due to its ability to provide very specific and measurable reporting at each stage of the funnel. The more sophisticated inbound marketing techniques get, the better revenues marketers will experience, thus resulting in higher profitability.
To learn more about how to increase your ROI, download this whitepaper!