If you are reading this, well, you are probably an entrepreneur and probably want to know what it is, right? Not surprisingly, you, being an entrepreneur and a business owner, are always looking at how to make the biggest impact on ROI with marketing strategies. First of all, what is ROI?
Understanding ROI
Let’s briefly define what ROI means before dealing with the strategies. ROI is short for return on investment. It basically explains how much profit you gain in comparison to the amount you have invested in any particular activity. Every entrepreneur strives to ensure that his investments result in returns that are sufficiently higher than the inputs that he is making.
Why ROI with marketing strategies Matters
Invest only your time, money, or resources in things that positively impact your bank account. The higher your ROI is, the better the investment. A good ROI calls for a business generating enough returns, making the effort worthwhile.
How do you calculate ROI
Don’t worry! It is not as complex as all the mathematical formulas used to it; in fact, it is pretty simple.
Social media ROI = (Total Revenue – Total Investment) / Total Investment
Now, to break it down further Total Revenue is how much money you made from your social media efforts, like sales or leads generated through your posts, ads, or campaigns, while Total Investment is the amount of money you spent on social media, including costs like ads, tools, and labor. A positive result means you profited from the campaigns you invested in by generating a higher amount than that; a negative result means the opposite.
Here’s an illustration to understand that better:
Total Revenue from social media: $10,000
Total Investment in social media: $2,500
Now, using the formula, Social Media ROI is:
= $10,000 – $2,500 / $2,500
= 3
Multiply by 100 to get the percentage:
3 × 100 = 300%
In this example, the Social Media ROI is 300%, meaning for every $1 spent on social media, the business earned $3 in return.
Exploring Popular Platforms for ROI
YouTube provides marketers with the highest ROI with marketing strategies, while meta-owned Facebook and Instagram trail closely behind. TikTok follows, but X (formerly Twitter), LinkedIn, and other small platforms clock in with less than 10% of marketers vouching for them.
Let’s dig deeper into the top four and explore why they deliver high ROI:
- YouTube
YouTube is the #1 social media channel for ROI in 2024, with 54% of marketers planning to increase their investment. The reach on YouTube is enormous: 30 billion monthly visits and 2.5 billion users. The targeting tools on the platform are highly powerful. Since the barrier of entry is low and the audience prefers video content, the ROI is very high too. - Facebook
The second-highest ROI is held by Facebook, with 53% of marketers planning to increase their investment in 2024. There are prime reasons for a good return via the robust targeting system available on Facebook. Using such targeting systems, marketers can reach out to users based on demographics, interests, and even behaviors. - Instagram
But despite a decrease, Instagram is very strong at ROI with marketing strategies. It offers opportunities from the advertisement, and it is also possible to buy posts, and even through features like Stories and Reels. - TikTok
It is uncertain, but TikTok has reached the fourth spot in terms of the highest ROI in 2024. With over 1.5 billion active users and still growing, the audience engagement of TikTok is massive.
Each of these platforms has unique strengths, and understanding how to leverage them can help businesses maximize their social media ROI.
The biggest impact on ROI with marketing strategies
Contact Marketing
Now, let’s talk about a marketing method that blows all the others out of the water: Contact Marketing. This technique boasts an astronomical 6,000% ROI and a 98% open rate. If you haven’t heard about it before, you’re not alone, but its results are truly remarkable.
What is Contact Marketing?
Contact marketing involves using personalized, targeted campaigns to reach key individuals of strategic importance. The basic idea behind contact marketing is making your message stand out with customized gifts or packages. Your personal contact and personalized gestures will install a sense of reciprocity: the recipient will want to return that in some form—whether that be to engage with your business, start up a partnership, or offer a referral.
Why Does Contact Marketing Work?
Contact marketing leverages human psychology, particularly the law of reciprocity. Once a person receives something valuable, like a gift, he or she is automatically triggered to give something back. This strategy cuts through the noise of standard emails and texts, providing an exciting and memorable interaction.
Consider this: how often do you get excited by a regular email? Probably not much. But imagine receiving a personalized gift in the mail—this triggers excitement and curiosity, creating an emotional connection that leads to trust and interest in your business.
How to Use Contact Marketing to get biggest impact on ROI
Implementing contact marketing can seem daunting at first, but it’s actually a straightforward process if you approach it correctly.
1. Target VIP Clients
The first step is identifying the individuals who would benefit most from your personalized outreach. These could be VIP clients you want to reactivate, potential new customers, or even key figures in your industry that you want to build relationships with.
Now here’s what you need to do to start generating clients. Before you begin, make sure to use a VPN for the country you’re targeting:
- Identify Your Target Audience: Before reaching out, know who you’re targeting. Is it a marketing head in manufacturing or a decision-maker in tech? LinkedIn makes it easy to filter by industry, company size, and job title to find your ideal customer profile.
- Personalize Your Connection Request: Instead of sending generic messages like ‘I love your profile,’ tailor your outreach. Mention their company’s goals or recent projects. Make it clear why connecting will benefit them.
- Build Relationships, Not Transactions: Networking isn’t about immediate sales; it’s about long-term relationship building.
2. Craft a Personalized Message
A good message should be meaningful and relevant to the recipient. Express why you are contacting them and how your business is relevant to their interests or values. Do not use the help of AI tools to convey your needs. They will trust you more when they know they are seeing your authetic true self. Do not fear making those spelling mistakes; that is worth more than a text generated by AI.
3. Choose a Memorable Gift
The gift doesn’t have to be expensive, but it should be meaningful and personalized. This thoughtful gesture not only will make the clients feel valued but also gives them a lasting reminder of their partnership. Every time they see it, it subtly reinforces the business relationship, creating both a personal connection and a talking point. This builds loyalty and leaves a lasting impact.
4. Follow Up
Contact marketing doesn’t end once the gift is delivered. Following up with the recipient is crucial to cementing the relationship and turning that positive gesture into business results.
Planning Your Contact Marketing Strategy
When you plan your contact marketing campaign, you will need a budget, proper gift ideas, and the right messages crafted just for each of them. Sounds complex? Believe it or not, the ROI with marketing strategies will make it worthwhile for all that seemingly fuss.
If you are unsure of where to start, look for an expert that can create a strategy that will hold up against your business model.
Conclusion
Now, entrepreneurs and business owners always pursue the biggest impact on ROI. Conventionally, they rely on the returns from Facebook, LinkedIn, and Google Ads, which will be normally good as well. With contact marketing, you can easily achieve extraordinary results and hence emphasize unique preferences of personalization and reciprocity to form long-term relations, bringing the business on to a new lever.
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Social media marketing ROI measures the return you get from your social media investments. It shows how well your social media efforts convert into profits, leads, or any other desired results for your business.
Some top tools include Google Analytics for tracking, SEMrush for SEO, Hootsuite for managing social media, and Mailchimp for email marketing. These tools help analyze and optimize campaigns to boost ROI.
They offer content creation, ad campaign management, audience targeting, social media strategy, analytics, and performance tracking to improve brand visibility, engagement, and conversions on platforms like Facebook, Instagram, Twitter, and LinkedIn.
An ROI marketing service focuses on strategies that maximize returns from marketing investments. They analyze campaigns, optimize spending, track performance, and adjust strategies to ensure cost-effective and measurable results.
