Grow NZ has launched a useful ROI calculator below to help you work out how to best maximise your returns from your marketing investments.
Many mistakenly think that spending money on advertising allows you to sit back and wait for the money to roll in. While we hope the money does roll in for you, there is of course, much more to do than shell out for an ad.
Maximising your marketing return on investment requires you to carefully balance each of the marketing levers including attracting potential customers (marketing/ leads), sales (either people or digital delivering conversions), price (including upsell opportunities), costs (being as efficient as possible) and repeat purchases (remarketing).
Understanding each of these levers is critical to understanding how to best maximise your marketing return on investment.
So, ask yourself some questions:
What if I can lift my conversion % from say 35% to 38%?
What if I can increase my upsell so revenue per sale increases by 5%?
What if I sell more and gain volume discounts from my suppliers of 3%?
What if I decrease my marketing investment by 50% (we call this the cashflow spiral) or increase it by 50%?
Experiment with your numbers and see what happens. All yellow cells in the calculator are variables – simply enter the number and hit ‘tab’ or ‘enter’ to see how each of the levers can impact your business.
Inputs
Current Performance per Mth| Current | New | |
|---|---|---|
| Marketing Investment | disabled="disabled" /> | |
| Leads | ||
| Conversions | ||
| Conversion |
disabled="disabled" />
%
|
class="form-control" disabled="disabled" />
%
|
| Revenue Per Sale | disabled="disabled" /> | |
| Fixed Costs | ||
| Variable Costs (% of Sales) |
%
|
disabled="disabled" />
%
|
| Current Performance | |
|---|---|
| Profit | |
| ROI |
%
|
| Projected Performance | |
| Profit | |
| ROI |
%
|
Scenario Planner
% Change| Variables | ||
|---|---|---|
| Marketing Investment |
value="50" class="form-control" />
%
|
disabled="disabled" /> |
| Leads (Advertising Optimisation) |
class="form-control" />
%
|
|
| Conversion Rate |
class="form-control" />
%
|
disabled="disabled" />
%
|
| Revenue Per Sale |
class="form-control" />
%
|
|
| Variable Costs (minus %) |
class="form-control" />
%
|
class="form-control" />
%
|
| Current Profit | |
| Projected Profit | disabled="disabled" /> |
| Current ROI |
class="form-control" />
%
|
| Projected |
class="form-control" />
%
|
*Tips
- Use remarketing & email to increase leads -Increase Conversion rate with clarity of message, sales training, remarketing, faster turnaround times & ease of processAnd remember, if you want some expert assistance to gain the best returns on your marketing investment, Grow NZ Business has proven expertise with marketing strategy and marketing execution and is a registered service provider with the Regional Business Partner Network.
Your business may be eligible for subsidised marketing support – click here to find out more