Not Getting the ROI You Expected? Here's How to Fix That

Typically, a fundamental objective for a business is working toward a profitable return on Investment (ROI). You want to see your business succeed and grow, appealing to target audiences over time. Essentially, the amount of work you put into a business needs to be seen in the results. Often a certain marketing tactic isn’t showing an adequate ROI, meaning that despite the money/effort put in to market the business, sufficient results are not seen. This is discouraging for any business owner, as it appears to have been wasted time and money.

When ROI is negligible or non-existent, it is frequently due to common marketing mistakes. Marketing plays an important role in the growth of a business, and if not thoroughly and intelligently planned out, strategies can flop. The best thing to do is take a step back and observe your marketing approach, preferably with input from a trained professional. Look to understand where the approach is going wrong and what could be done better. If you are not getting the ROI you expected, here are some tips on how to fix that:

What is ROI?

ROI, or return on investment, could be viewed as the number of hours of performance a business conducts divided by the return of profit. In cases when a business is lacking in profit (such as a downturned economy), working harder and putting in more hours is usually required for improved outcome. The investment put into a business is seen in the number of hours of labour as well as the monetary payout to have the work done. You invest X number of dollars into the work/person and expect to see XX number of dollars in return. Ideally, your return on investment is larger than the investment made multiplied by your target net profit (whether through link clicks, calls from an ad, or social media sales). When this happens, profit is achieved.

Although ROI is not directly “profit,” ROI is a common way to calculate whether or not the investment (time, money, etc.) into your business is paying off. Spending this time and effort building marketing strategies and conducting outreach to prospective clients are essential parts of business success. Marketing is a long-term commitment that, when done properly, will be reflected in a positive ROI.

Why Your ROI is Not as Expected

Lack of Change

One of the mistakes that businesses make is avoiding change. It takes a lot of effort to create and execute a marketing strategy for a business. In a print advertisement alone, you need to determine your message, slogan, design, placement, budget, etc. With the details needed for each revision, it is easy to want to fall back on an older version of your advertisement for submission. This common advertising mistake usually translates to a decreased ROI. That change that you made, had you redesigned your ad and message, could be your business’s moment of genius – the change that takes your ad from average to amazing. Transform your ad using strategic thinking, an understanding of the current market and trends, and analytics of your previous placement. With this new information, your ad will look (and perform) much different and become highly relevant to your audience.

Lack of Effort

Advertising is not as simple as posting your slogan on a billboard and hoping people flock to you. You have to know where your target audience is and where your ad should be placed to reach them. Are they business people in waiting rooms looking at magazines? Are they consumers who browse primarily on their mobile phones? Knowing where your target audience is and when to reach them can help you identify how you should advertise (magazine, radio, online, etc.).

In addition to identifying placement and type of ads, you cannot expect the advertisement to do all the work. The ad is simply the physical presence of your business – what you do with it is up to you! If you are invested in your advertisement, present it in new ways:

• Share it on social media
• Reuse it as an ad on multiple online platforms
• Repurpose your business services into a detailed blog
• Use B2B relationships to reach more people
• Find advertising options that match your audience’s location and reach

You want to grab the attention of people interested in your business, and work to spark or rekindle that flame. Once you have done the work to direct attention to it, you will begin to see an increased ROI.

How to Fix Your ROI

When you find your business in stasis, it is crucial to change up your marketing strategy. You need to determine what worked best to bring audiences in, and what was a missed opportunity. In times like these, take a look at your audience, your marketing analytics, and begin to “tilt” your approach. Avoid posts that did poorly in the past, look for trending topics in your area, and research new methods, programs, and topics that could benefit your business. How do you “tilt” your marketing? Through applying new strategies that are unique, creative, and specific:

Unique

A common saying is, “if you can’t beat them, join them.” In business, this is the opposite of what you should do. Competition is a large factor in the decline of your ROI. Amongst the hundreds of other businesses “just like yours,” you need to stand out. When you find your ROI is not as expected, work to alter your strategy to be more unique. Take risks and attempt things that your competitors would not. If you are a floral business, find unique ways to present your goods. Design bouquets to match trending celebrity red-carpet outfits, offer arrangement classes, display your flowers at partner coffee shops. Do what others have not.

Specific

Ads are too often seen with vague slogans, simple descriptions, and stock photos. When an advertisement is too broad, people will forget what it was about – if they see it at all. Be specific and explore what your business has to offer. If you are an accounting office, don’t simply say that you can help people with money problems. Pinpoint a specific pain point seen among your clients: “Are you self-employed and struggling to figure out what you can claim on your taxes? We are here to help!” This allows you to create marketing strategies that directly apply to an individual, not a large crowd. Let your audience know that your services are specific to them and they won’t be left wondering if you can help.

Creative

Creativity is essential in a marketing strategy. If your social media posts are the same granola information, your audience will scroll right past. Put your thinking cap on and search for creative ways to present your products and/or services. When businesses get creative with their marketing and advertising, they are more likely to drum up interest and see that boosted ROI. For a pizza business, a radio ad may not make the most sense to share how delicious the pizza is. A more creative approach would be to have a special slice for “first timers” or to hold contests for office pizza parties. Do things that will excite people and draw attention.

When investing in your business, make those ventures worthwhile. Do research, explore trends, don’t be afraid of change, and take the time to identify what makes your business the best. If the investment you put in is worth its weight, your ROI will be better than you expected.

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