January 3, 2024
Every digital marketing campaign relies on one key metric.
That metric is ROI.
ROI stands for return on investment and it can be summarized into the number of dollars you put in compared to the dollars you get out.
Generally speaking, you want this metric to be as high as possible.
As a small business ourselves, we understand understand that every marketing dollar is sparse.
We cannot afford to waste dollars on trial and error without having a plan for the best and worst case scenario.
Maximizing ROI is ultimately what good marketing campaigns set out to do.
Before launching a digital marketing campaign, it's important to have measures in place to track revenue.
Where most digital endeavors fail is not having a system in place to track how much revenue digital marketing efforts is driving for the business.
We recommend using Hubspot as the CRM of choice due to it's cheap entry cost, and it's easy to use interface.
With Hubspot, you will be able to track all of your customers, their activity on your website, assign tasks to your sales team (or yourself), and automate simple workflows like task management and email sends.
These save your time, all while giving you the insights you need to determine what's working and what's not.
The great news is that not all digital campaigns cost money.
In fact, some of the best campaigns only require some grit.
Below are some free online marketing campaigns that your small business can use:
As mentioned above, SEO is something you can start doing today to help increase the ROI of your small business.
SEO is a digital marketing tactic that helps do the following:
You may be wondering how these can help with ROI.
While you are running other types of media campaigns - physical or digital - you can also work on SEO.
These other media campaigns generally cost money to setup and execute, which then brings you leads.
SEO is something that can also bring you leads, while costing nothing but your time (or someone else's).
Putting this into perspective, this means that for every SEO lead you gain, you can start to count those in your overall ROI metric.
If you aren't paying for SEO services, then will start to see a positive increase when measuring marketing ROI.
Although immediate ROI is most important right now, something worth mentioning is that SEO offers is long term performance, as well.
Long after you conduct SEO on your website, you continue to reap the benefits of those hours of work.
In fact,organic search and referral traffic are the largest and most effective sources of marketing ROI for brands, likely due in part to their cumulative nature.\
Similar to SEO, email marketing is all about stretching your marketing dollar's effectiveness.
Sending emails to your existing and prospective customers takes very little time, and can result in profit almost immediately after sending.
For example, think about all of the promotional emails you receive on a daily basis.
In fact, the time of this writing is right around Black Friday, arguably the biggest day for email marketing promotions.
Small, medium, and large companies send promotions on this day because they have cracked the code on how valuable one new paying customer is for their business.
Another metric closely tied to ROI is CAC.
CAC is the cost to acquire one new customer.
For example, spending $125 on Google Ads that result in one new customer means that your CAC is $125.
In digital marketing, we focus on the Lifetime value to CAC ratio (LTV : CAC).
Using the previous example above, let's assume the LTV is $375.
Then your LTV : CAC ratio is $375:$125, simplified to 3:1.
When you have a LTV : CAC ratio of 3:1, then your marketing strategy is working!
This means that your target audience is taking action and paying long after they are acquired, which means that you can scale this winning combination of marketing efforts.
However, when LTV:CAC ratio is less than 3:1, that means there are issues and determing the root cause is crucial before scaling ad spend.
Nowadays, Social media management is just as important as having a great website experience.
According to a recent study, 54% of social media users use social media to research products and 71% are more likely to purchase products and services based on social media referrals.
So having consistent and quality social media posts can have a direct effect on your small business and it's marketing efforts.
As mentioned previously in this article, using Hubspot is crucial.
This is how we determine overall business revenue from marketing.
Within Hubspot, the revenue metric can be segmented down into revenue from users that clicked a social media post.
This means you can see the revenue from social media marketing right from your Hubspot Dashboard.
Social posts not only keep your brand front and center for social media users, but it also gives you real time feedback on what your customers and prospects are interested in.
Every social media post has metrics associated with it that help explain if your audience liked the content or not.
Collecting an album of your greatest hits can serve small business owners very well when pitching new customers.
Now that we have covered free campaign options, let's get into paid acquisition channels.
Remember from earlier, we want to run paid ads once we find a profitable LTV:CAC ratio.
This means for every $1 we spend, we receive $3 in return.
Below are some paid ads strategies:
PPC ads are one the easiest methods to setup and run, however not the easiest to optimize.
This is because the ads themselves are simple pieces of text that populate in the Google search engine, while the call to action occurs on the website.
This being said, we only advise clients to run these ppc ads when the LTV:CAC ratio from their website is 3:1.
Sometimes, there is a catch 22 in effect where we don't have the data to act, and we can't get the data unless we act.
In this case we act, but with benchmarks and forecasts in place to limit ad spend to a trial campaign.
A great way to tie in revenue into PPC advertising platforms is to sync the CRM to the platform.
This means that when a user fills out a form, all of their previous activities can be tied to the CRM's platform.
By viewing these activities, the CRM is able to view who came from digital marketing ads, and thus assign real revenue back to the ad or marketing campaign that drove it.
This helps keep ad spend constantly mind so that we are achieving a profitable LTV:CAC ratio.
Perhaps what small business marketing strategies include most often are paid media ads.
These kinds of ads show in Facebook, Instagram, LinkedIn, X (formerly Twitter), Reddit, and the list goes on.
Any social media platform that sells ad spots is a form of paid media.
Like PPC, we advise clients to run paid media ads once they are starting to see a positive LTV:CAC ratio from that social media platform.
But how do you track interactions from ads?
The best way to understand how paid media ads and social posts are doing regarding clicks is with UTMs.
UTM stands for Urchin Tracking Module and it essentially is a URL string that is appended to your link with unique identifiers to determine the campaign the post is a part of.
These UTMs populate and are fed into Hubspot's reports, as well as your Google Analytics.
Inside of Google Analytics, reports can be segmented down to track the number of users that come from certain social media and if they eventually fill out a form or turn into revenue.
ROI is the most important metric when conducting digital marketing strategies.
Small business marketing relies heavily on efficient online marketing methods to attract new customers.
By using free services, small businesses can increase their marketing ROI using email, social media, and SEO.
By using paid services, small businesses can scale their ROI using PPC and paid media.
After talking about ROI and the benefits of free and paid services, it makes sense to discuss different marketing packages that digital marketers offer.
Marketing works best when different tactics work together.
Just running SEO isn't going to be as effective as running PPC and SEO.
The key to developing a good digital marketing strategy is to include services from other platforms that complement each other.
Ad spend free services include email marketing, social media marketing, and SEO.
These kinds of services are always found in affordable marketing packages because you only need to purchase the agency's services.
In paid marketing packages, you pay for the service as well as the ad spend.
Two of the most popular services to include in a marketing package would be social media marketing and SEO.
These two work hand in hand, because ultimately all the work you are doing from social media marketing is going to drive your target audience back to the website.
Small businesses can greatly benefit from both of these services because, if done consistently, their long term rewards far exceed the expense of working with an agency.
Some clients are into blog posting and video generation.
It just so happens that these both help SEO greatly.
Videos helps with organic search rankings because a video could be placed on YouTube, which takes precedence in the Google Search.
This being said, another variation of SEO marketing packages includes different media channels.
These small business marketing packages are always centered around getting faster results.
A marketing package in the advertising space usually guarantees results within a certain time frame.
In order for these business marketing packages to fulfill that guarantee, then PPC and paid media are needed.
Likely what the marketing package will be is top level PPC advertising paired with paid media retargeting ads on various social platforms.
This structure is the most effective and extremely helpful at generating leads for small businesses.
This form of online marketing also helps the business appear larger than what they are which helps with relevancy and recency biases.
What you'll find more often then not are marketing packages that don't differentiate between services with ad spend and services without.
Hopefully above will help with your decision marking moving forward.
Now we can talk about plans that include both kinds of services.
Below are a few plans that we highly recommend to our clients:
Starting out, lead generation should be you primary focus.
Let an agency come in and help with your social media accounts, optimize your marketing spend, and increase your marketing ROI.
These marketing experts work with you to develop a marketing package that you are comfortable with, then be on their way to execute the marketing plan.
Choosing the right marketing package is the first step to increasing your marketing ROI.
Without expert guidance and trust, then your marketing efforts may not have much to show for.
However, when you work with seasoned digital marketing veterans like us at Optimize Your Marketing, you can rest easy knowing that with a proven process and strategy, that your small business will reach it's goals.
All of the services mentioned above are services we actively manage for businesses like yours.
If you are tired of your marketing efforts falling flat, and would prefer to have some wind in your sails, then we would love to hear from you.
We help small and medium sized businesses overcome digital marketing hurdles and bring high quality leads straight to their business.
We hope to hear from you soon.