There s More to Marketing ROI Return On Investment than Meets the Eye
Below is a MRR and PLR article in category Business -> subcategory Marketing.
There's More to Marketing ROI Than Meets the Eye
Summary:
Discovering the True Measure of Your Marketing ROI
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When evaluating marketing ROI, many focus solely on response rates, such as, “I sent out 10,000 direct mail pieces and only got 39 responses.” This approach misses the bigger picture.
Marketing ROI, or Return on Investment, is about the revenue generated from your expenditure. For instance, if you spend $2,000 on a bulk mailing of 5,000 pieces and receive 10 calls, it might not seem promising. However, if 6 of those calls lead to sales totaling $12,000, that’s a strong ROI. This calculation doesn’t even account for potential future sales from those 6 customers, which could translate into hundreds of thousands of dollars over time.
The same principles apply to other marketing strategies like radio ads, press releases, print ads, and online efforts. It's essential to track responses from each campaign to refine your marketing strategy, eliminating ineffective efforts and boosting successful ones.
Success Story: Measurable Solutions’ Strategy
Jeff Lee, CFO of Measurable Solutions, illustrates successful marketing with direct mail. His company utilizes a strategy involving newspaper mailings complemented by high-quality postcards. The design is handled internally, while a postcard printing company manages printing and mailing. According to Jeff:
- They mail around 7,500 postcards weekly, generating 15-20 leads.
- Approximately a third of these leads attend an introductory seminar, generating $1,700 per attendee.
- This results in $30,000 to $40,000 in additional services sales.
The cost of their postcard campaign is about $2,275, which includes printing, postage, and mailing services. This investment typically results in $8,500 to $11,900 from seminar responses and an additional $30,000 to $40,000 in sales. Spending $2,275 to earn $40,000 to $50,000 is a clear demonstration of effective marketing ROI.
Results may vary between businesses, but the principle holds: sufficient promotion leads to sales and maximizes ROI. It’s crucial not to fixate on response rates if your ROI is high.
You can find the original non-AI version of this article here: There s More to Marketing ROI Return On Investment than Meets the Eye.
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