Maximizing ROI: Creating Cost-Effective Marketing Campaigns

Maximizing ROI: Creating Cost-Effective Marketing Campaigns for Ecommerce

Posted 6 months ago by Anastasia Prokofieva

As桂a桂business owner, any桂opportunity to桂cut costs and桂gain online exposure is桂a桂golden ticket to桂growth in桂an桂already saturated market.

Cost can be桂a桂significant deterrent for桂all businesses, from small shops just getting started to桂veteran sellers who have been in桂the桂game for桂years. The trick is桂to桂find creative ways to桂launch campaigns that convert without costing a桂pretty penny.

In桂this post, we�셪l share the桂secrets to桂maximizing ROI while minimizing costs, allowing brands (at any桂stage) to桂grow their business, attract new customers, and桂compete in桂new markets. Let�셲 jump in!

What Is桂ROI?

Return on桂investment, or桂ROI, is桂a桂measurement used to桂determine how profitable an桂investment has been for桂a桂business when compared to桂the桂investment�셲 cost.

ROI is桂important for桂businesses because it�셲 a桂simple way to桂determine the桂profitability of桂certain investments and桂provides accurate insight to桂make adjustments as桂needed.

From email campaigns to桂influencer partnerships, there are so桂many moving parts when it桂comes to桂your digital marketing strategy. Knowing what works and桂what doesn�셳 is桂vital to桂your success.

As桂an桂ecommerce business, if桂an桂investment or桂strategy isn�셳 serving your bottom line, the桂sooner you know, the桂better. For example, why waste money on桂an桂SMS campaign that isn�셳 converting when you could invest more into influencer collaborations that have a桂higher profitability? Follow the桂money, always!

How to桂Calculate ROI?

Calculating ROI can be桂done with a桂simple ROI formula, which is桂as桂follows:

ROI =桂Net Return on桂Investment /桂Cost of桂Investment x桂100

Depending on桂your business model and桂goals, there are a桂few other . You can also use ROI calculators online.

In桂advertising and桂marketing, measuring ROI is桂vital to桂justify tweaking budgets桂�� not just deciding whether to桂lower or桂raise them, but also figuring out where to桂put your money.

One common way to桂calculate ROI for桂marketing campaigns is桂to桂subtract organic sales growth and桂marketing costs from revenue growth and桂then divide it桂all by桂the桂marketing costs.

However, different campaigns might need different strategies. Given this context, it�셲 unsurprising that more than a桂quarter of桂global marketers mentioned that strategy.

What Is桂a桂Good ROI?

To桂tackle this question, it�셲 important to桂remember that what�셲 considered 혫good혬 can vary depending on桂a桂business. Also, keep in桂mind that the桂specific industry and桂market conditions can play a桂role in桂how profitable a桂company is.

According to桂Statista, in桂2023, the桂median profit-based return on桂investment for桂successful advertising campaigns worldwide hit $2.43. This means that, on桂average, global advertisers made $2.43桂for桂every dollar they put into those strategies.

Median revenue-based ROI of桂successful advertising campaigns worldwide 2017-2023桂(낍늡넵곶낌깎: )

Why Is桂a桂Return on桂Investment Important?

The value of桂understanding ROI and桂its impact on桂your business is桂critical for桂a桂few reasons. Let�셲 discuss the桂most significant ones here.

Financial Insight

Knowing the桂ROI of桂marketing campaigns helps ecommerce shops make sound financial decisions that can have a桂positive impact on桂their bottom line.

When you know your ROI on桂a桂campaign, you can make an桂informed decision on桂whether you should continue pursuing that particular channel or桂try something else.

Performance Measurement

With valuable ROI metrics, it桂becomes simple to桂measure the桂success of桂marketing campaigns, initiatives, and桂special projects. With an桂accurate picture of桂how campaigns performed, ecommerce shops can pivot, change course, or桂keep moving forward with what�셲 working.

Resource Allocation

Once your ROI analysis is桂complete, allocating resources to桂effective channels and桂strategies becomes simple and桂streamlined. Knowledge is桂power, and桂for桂ecommerce shops, this metric can be桂the桂difference in桂huge sales, brand awareness, and桂your bottom line.

Step-by-Step Guide to桂Maximizing ROI

Wondering how you can maximize your ecommerce shop�셲 efforts and桂ROI? Here�셲 a桂step-by-step guide to桂get you started.

Step 1

Fail to桂plan, plan to桂fail�� which genius came up桂with this quote? We桂aren�셳 sure, but it�셲 likely to桂have been a桂marketer! Setting clear goals and桂KPIs for桂your marketing campaigns is桂a桂critical first step to桂maximizing ROI and桂efforts every step of桂the桂way.

These will help to桂assess the桂effectiveness of桂your efforts, identify issues, determine which tactics were successful, and桂how you can improve.

Step 2

Tracking your expenses and桂the桂revenue generated from campaigns is桂the桂foundation of桂what a桂return on桂investment is. Keep track of桂every dime spent on桂campaigns, from ad桂budget to桂graphic designers, flyers, website fees, email platforms, and桂anything else related to桂your campaigns.

If桂you�셱e using 붚죕쳔 for桂your online store, you can check out the桂built-in Marketing reports. They give you a桂quick look at桂where your orders are coming from桂�� whether it�셲 a桂Google ad, a桂Facebook post, or桂an桂email campaign.

The Marketing reports also show the桂revenue generated from each channel, which can help you calculate the桂ROI of桂your marketing campaigns.

붚죕쳔�셲 Marketing reports provide you with an桂easy-to-understand overview of桂your sales sources

붚죕쳔�셲 Marketing reports are based on桂data collected with the桂help of桂UTM tags. Learn all about using them and桂making the桂most of桂the桂Marketing reports in桂this article:

Step 3

Curious how far your efforts have gone once a桂campaign has been completed? This is桂where using ROI formulas is桂necessary to桂calculate the桂effectiveness of桂your campaigns. Break each ROI analysis down by桂channel to桂see your results and桂efforts accurately.

For example, track your spending and桂earnings on桂an桂SMS campaign and桂compare it桂to桂how email, Facebook ads, or桂TikTok sponsored posts have performed. This data will paint an桂accurate picture of桂which channel offers the桂most cost-effective marketing for桂your brand.

Step 4

Once you have this new data, it�셲 time to桂tweak and桂adjust your strategies and桂efforts. If桂your goal is桂business growth, new customers, and桂more sales, an桂ROI analysis will tell you everything you need to桂know.

For example, if桂your Facebook ads have a桂significantly lower ROI than other ad桂campaigns, it桂may be桂time to桂reevaluate your Facebook advertising strategy. You may need to桂target a桂different audience or桂adjust your ad桂creative and桂messaging.

Remember that figuring out ROI isn�셳 just about pinpointing successful campaigns but also about analyzing why some efforts might not give the桂expected results. This insight can steer future decisions and桂investments, shaping a桂stronger marketing strategy.

Cost-Effective Marketing Strategies to桂Maximize ROI

Not sure where to桂start? We�셶e got you! Here are the桂most cost-effective marketing strategies for桂small business owners to桂get started.

Email Marketing

Email marketing is桂truly one of桂the桂most cost-effective marketing strategies. According to桂different studies, it桂usually returns about $36桂to桂$40桂for桂every dollar invested; Omnisend even claims for桂each dollar spent!

In桂2023, about 52% of桂marketing pros saw a桂twofold increase in桂ROI from their email campaigns (Source: )

To桂create an桂impressively high ROI with email, run targeted email campaigns that segment audiences based on桂demographics, interests, and桂shopping behaviors. Personalized emails are more likely to桂resonate with recipients and桂drive conversions.

For example, segment your email list based on桂purchase history. Send specific product recommendations to桂those who have bought similar items in桂the桂past.

If桂you sell online with 붚죕쳔, you can use its integration with Mailchimp to桂run personalized email campaigns. For example, you can email customers who bought a桂specific product more than three times and桂offer them a桂subscription for桂that product.

Another handy tool 붚죕쳔 sellers can use is桂the桂Customers dashboard. For each customer, there�셲 a桂details page where you can check out stats like the桂number of桂orders they�셶e made, the桂average order value, and桂the桂total revenue per customer.

Using this information, you can segment and桂export customers to桂send personalized campaigns via the桂email platform of桂your choice.

Viewing a桂customer�셲 past orders can help create more personalized offers

SEO Optimization

Search engine optimization (SEO) is桂the桂process of桂optimizing a桂website to桂attract organic (free) traffic from search engines like Google or桂Bing. This way, you�셪l increase visibility and桂drive long-term organic traffic, turning leads into customers without breaking the桂bank.

SEO is桂one of桂the桂cheapest ways to桂promote your business since it桂doesn�셳 require paid advertising like Facebook or桂Google Ads. However, it桂does take a桂bit longer to桂see the桂results compared to桂some other methods.

Here are a桂few key factors to桂keep in桂mind when optimizing your website for桂SEO:

Use relevant keywords: Make sure to桂use keywords that accurately describe your product or桂service throughout your website�셲 content, meta descriptions, and桂image alt tags.
Provide high-quality content: Search engines prioritize websites with valuable, informative, and桂well-written content. This not only helps with SEO but also creates a桂positive user experience for桂visitors.
Optimize your website�셲 loading speed: A桂slow-loading website can negatively impact both SEO rankings and桂user experience.
Use backlinks: Backlinks from reputable sources can help boost your website�셲 authority and桂credibility, thus improving its SEO ranking.
Ensure mobile-friendly design: With the桂majority of桂internet users now accessing websites on桂their mobile devices, having a桂mobile-friendly design is桂crucial for桂SEO and桂user experience.
Register a桂custom domain name: Having a桂unique and桂memorable domain name can help with brand recognition, trustworthiness, and桂SEO.
Collect product reviews from customers: Reviews not only provide valuable feedback for桂your business, but they also serve as桂user-generated content that can improve SEO rankings.

If桂you use 붚죕쳔 as桂your ecommerce platform, there are many ways to桂optimize your 붚죕쳔 store for桂search engines. That includes:

customizing product and桂category URLs
creating 301桂redirects
buying a桂custom domain name
publishing product reviews
adding meta tags and桂alt texts to桂products and桂categories
and桂more! See the桂full list in桂the桂.

Search engines favor concise and桂descriptive product URLs

Social Media Marketing

Social media continues to桂be桂a桂powerhouse marketing tool for桂brands big and桂small. Use social platforms like Instagram, Facebook, TikTok, or桂YouTube to桂leverage organic reach through engaging content, building communities, and桂influencer collaborations as桂you grow.

A桂September 2023桂survey among global B2B and桂B2C marketers found that 29% cited Facebook as桂the桂top social media platform for桂ROI, followed by桂Instagram. YouTube ranked third at桂26%, with TikTok following at桂24%.

Facebook is桂the桂social media platform with the桂highest ROI (Source: )

Follow your target audience by桂existing on桂their preferred channels. This will allow you to桂interact with them on桂their terms, building trust and桂credibility.

If桂you encounter a桂creative block while crafting content for桂your business on桂social media, here are some helpful cheat sheets:

Content Marketing

The written word isn�셳 going anywhere桂�� content marketing is桂making sure of桂that! Through valuable content, you can build impressive brand authority without investing huge sums of桂money and桂create trust with your target audience.

This can include blog posts, videos, infographics, eBooks, tutorials, and桂more. Drive organic traffic to桂your website and桂ecommerce shop, where potential customers will be桂more inclined to桂shop on桂your site and桂get to桂know your brand.

For more ideas on桂what content to桂create, listen to桂our podcast:

Ecommerce Content 101: Easy Types of桂Content to桂Make for桂Your Business

Direct Mail

If桂you�셱e surprised to桂see direct mail, you�셱e not alone. Many businesses overlook this traditional marketing tactic, but actually, according to桂a桂US桂survey of桂marketers, direct mail ROI outperformed other channels by桂an桂average of桂161% in桂2023!

ROI of桂advertising campaigns in桂selected media in桂the桂United States in桂2023桂(낍늡넵곶낌깎: )

With digital ads everywhere these days, business owners need to桂get creative with marketing, and桂direct mail can be桂an桂inexpensive way to桂do桂that. To桂learn more about direct mail strategies you can implement, check out our podcast about good old direct mail marketing:

Why Direct Mail Is桂Far From 뛰깎껸삣�밶꾈삣 How You Can Use It桂in桂Your Marketing

PPC Advertising

This one is桂tricky because it桂involves spending more money than other marketing strategies. However, it桂doesn�셳 mean that PPC advertising can�셳 be桂cost-effective.

Here are some ways to桂make your ads more cost-effective:

Target specific demographics to桂reach a桂highly qualified audience actively searching for桂your products or桂services. Simply put, don�셳 waste your budget on桂people who are not interested in桂what you have to桂offer.
Use A/B testing to桂determine which ad桂copy and桂images perform better, and桂then allocate your budget to桂the桂most effective ads.
Use retargeting to桂reach potential customers who have already shown interest in桂your brand or桂products, increasing the桂chances of桂conversion.
Set daily budgets and桂track conversions for桂precise control over your marketing budget
Control which networks and桂platforms your ads run on桂�� no桂need to桂advertise on桂a桂platform your target audience rarely engages with.

To桂learn more about lowering your ad桂costs, check out the桂article below:

Final Thoughts on桂Maximizing ROI

Running a桂business online is桂no桂easy feat桂�� it桂takes grit, dedication, passion, and桂a桂certain amount of桂marketing chops that many business owners hone as桂they go. Take note of桂the桂strategies above to桂make this process easier. This way, you�셪l be桂able to桂spend less and桂ultimately grow your brand.

Ready to桂start selling? Join the桂붚죕쳔 platform today and桂enjoy many powerful marketing tools at桂your fingertips, including email, ads, SEO, beautiful website templates, and桂much more.

붚죕쳔 is桂your partner in桂navigating through the桂waters of桂ecommerce, helping you to桂maximize ROI and桂experience massive growth. What are you waiting for? Sign up桂for桂붚죕쳔 today!

桂

About The Author

Anastasia Prokofieva is a content writer at 붚죕쳔. She writes about online marketing and promotion to make entrepreneurs�� daily routine easier and more rewarding. She also has a soft spot for cats, chocolate, and making kombucha at home.

붚죕쳔