What is ROI and Tips to Maximize ROI

What is ROI and Tips to Maximize ROI

Return on investment (ROI) is an essential parameter for e-commerce, as it allows you to know which marketing strategies work, which ones don’t, and what decisions need to be made in the future. 

What is ROI? 

ROI – Return On Investment – ​​(return on investment) is the rate of return on the total investment, that is, the net profit obtained from the invested capital.  

ROI is significant because it serves as a reference to define marketing strategies for the future. Calculating ROI makes it possible to determine which marketing tactics are working and which parts can be improved. 

9 marketing tips for a good ROI 

We have already seen what ROI is and how it is calculated; now, let’s look at marketing trends to maximize it.

1. The success of candor

No one likes to be scammed, especially when it comes to companies we have trusted to the point of purchasing a product or service. 

Although a less-than-honest marketing strategy may work at first, in the long run, it may not be a winner, and you may lose some of your customers. 

Do not underestimate clients’ ability to perceive that you are hiding something from them or that your involvement in their interests is not genuine. The only result of all this will be the loss of your reputation in e-commerce. And a ruined image is difficult to recover. 

So prevention is better than cure; honest communication is not only your best bet to sell and retain customers but also to make them understand that your products or services are the best solution to the problem they are trying to solve. 

Reviews are a key factor in building loyalty. What your customers say not only helps you gain the trust of your visitors but also improves your SEO

With reviews, your site visitors can know whether a product is right for them, which helps lower your return rate. That is why negative opinions are also important. What counts is reacting correctly. 

2. Influencer advertising continues to be an essential asset 

Influencers have become a powerful force in E-Commerce and have a broad reach, especially in groups like Generation Z. By reaching a broader audience than a traditional brand, they can help you improve your brand’s visibility and, therefore, promote your products and services effectively.

In fact, influencers usually have a loyal audience: in 2022, 90% of their followers gave some credibility to the decisions made by the influencers they followed.

However, a study shows that, for consumers, customer reviews have even more weight than influencers when making a purchasing decision.

3. Don’t ignore virtual news

The world as we know it is changing rapidly. The metaverse is rapidly gaining popularity, NFTs are selling for incredible prices, and everyone knows about cryptocurrencies. 

It is an exciting time for all e-commerce professionals because right now, each one is in the same situation in this new marketing playing field: no one is ahead, and no one is (for now) behind. Of course, there will be guidelines to follow. However, the metaverse is still a brand-new platform that offers endless possibilities and is open to experimentation. 

The most profitable online marketing tactics have not yet been established, but you still have a chance to be among the first in this field. 

4. Be careful with the duration

YouTube has short films, Instagram has reels, and TikTok is famous for its short-form videos. 

It’s now clear that short-form videos are the new standard for advertising.  

According to a survey of global video marketers published in June 2022, 39% of respondents said short-form video was the format with the highest return on investment (ROI). 

According to another survey of the social media platforms that offer short videos, Instagram is the one on which users spend the most time per session: 53 minutes per session on Instagram and 45 minutes per session on TikTok. 

YouTube shorts, Instagram or TikTok reels are more accessible, quicker to make, and more comfortable than lengthy content. 

People still use long videos for detailed information about a product. Still, more and more people are attracted to short content. 

It is true that, for many companies, the territory of short content remains unexplored. It is a new skill that requires the adoption of innovative tactics and techniques. And that’s where we come back to influencer marketing. 

5. Let artificial intelligence help you

Artificial intelligence, or AI, is transforming the rules of marketing. Artificial intelligence enables marketers to accelerate complex tasks such as automating customer requests and routing, creating funnels, and facilitating conversions. 

The use of artificial intelligence speeds up the processing of large amounts of data. At the same time, you can focus on other, more important tasks during that time. 

I will not dwell too much on this topic because we already have a very complete article on AI that I recommend you read: 

6. Highlight your primary mission

Think about your fundamental convictions and your values. How have they influenced the person you are now and the decisions you have made so far? 

It can be said that our values ​​and convictions influence our lives and the decisions we make daily. That’s why it’s essential that you clearly communicate the values ​​and mission of your e-commerce company so that your potential customers can identify with and choose your brand.  

Knowing your company’s values ​​is essential since they help you define the identity of your online store and communicate your vocation to your target audience and the people who share it. 

7. The power of social and interactive content 

Yes, it is undeniable that we are in the digital age, which continues to grow. Being active on social media is no longer optional. 

The important thing is that you know which social network is best for you or, instead, which social network your audience uses. 

With the popularization of social media, the concept of social commerce is spreading rapidly. 

Social commerce is the possibility of buying products or services through social networks and sharing their experience with other users.  

An example of social commerce is Instagram Shopping, where products can be purchased directly through the social platform. 

Another tip for success on social media is interactive content. By interactive content, we mean any content that conveys your message by encouraging user participation/engagement. 

Also Read: What is Web 3.0

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