Formula for Return on Investment

The formula for increasing Return on Investment (ROI) through Internet marketing is pretty straightforward, as well as not very complicated. But executing the principles that bring it about is what sets the pros apart from the rest of the pack.

The foundation for Internet marketing is the deliver of targeted traffic, based on a specific demographic, to your website that is designed for conversion elements. That may or may not be happening, so there may be the need to increase the level of targeted traffic to see how that in by itself impacts ROI.

So then, increasing traffic while maintaining a consistent conversion rate accomplishes an increase in ROI. That is represented on the graph in the “Increase your traffic” section. The key then is to determine which form of traffic generation has the highest likelihood of meeting the dual goals of highest levels of targeted traffic and budgetary potential. Is it going to be Paid Search, Search Engine Optimization, Social Media Campaigns, Article Marketing, Press Release Strategies, or a combination of the above?
Common Sense ROI Strategy
The other obvious option is to “convert” a higher percentage of your current traffic. You can see the effect of this objective in the “Increase your conversion rate” portion of the graph. This is usually accomplished through conversion architecture strategies, paths of visitor travel, and well planned calls-to-action.

The greatest impact on ROI is through combining the goals of increasing targeted traffic AND increasing your conversion rate. The only problem with this approach for many businesses is that a complete overhaul of their systems seems a bit risky. That is why we many times will advocate micro testing in order to minimize risk.

It could be perfectly logical to test strategies to increase conversion by redirecting a percentage of existing traffic to see how the new strategies impact your company ROI. When it has been proven through empirical data, then you can implement solution wide.

Perhaps you would like to test out Social Media, PPC, or other forms of traffic generation without a huge long-term commitment. We could design a strategy to reveal the effectiveness of any marketing tool to determine whether it makes sense to run with it over the long haul.

Historically we have had phenomenal results in creating ROI for our clients. We would love to speak with you to see if we might be a fit for your company if your goals include plans for increased ROI and revenue generation.





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