Depending upon what type of return you are seeking on investment you make in your business, there are several ways to improve your ROI. Returns consist of increased profits, reduced expenses such as brand awareness and improved operating efficiencies. The initial step towards improving your return on investment is to clearly define the potential return you are expecting from your investment. Secondly, to increase ROI, it is important to generate more sales and revenue. If you can increase sales without increasing your costs, then you have improved ROI. Most people would agree that over time, an average annual return of 5 to 12 % is a good return of investment for a business.
Conversion Rate Optimization is simply the process to increase the percentage of conversions from a mobile app or a website. CRO involves generating leads on your site and can be validated through A/B testing and multivariate testing. It is important as it allows you to lower your customer acquisition costs by getting valuable visitors.
The lead to close rate is a significant measure of a marketing executive’s efficiency. The ratio measures the percentage of sales leads that the marketing executive will convert to actual sales. If you wish to calculate your sales lead to close ratio, you just need to count the number of sales leads over the period for you wish to calculate.
Average Order Value is the measurement tool that tracks the average dollar amount spent each time a customer makes an order on a mobile app or a website. It is calculated as the company’s average order value equals the total revenue by the number of orders. Increasing AOV is one of the key metrics to track for any retailer.