How to Increase Return on Investment for Your Business?

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.

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Conversion Rate

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.

Cost per Lead

Cost Per Lead is the form of performance-based advertising. It is known as a middle ground between online advertising techniques such as cost per impression (CPM) where a publisher is not directly awarded depending upon how the traffic has performed. The CPI model can help to share the responsibility between publishers and advertisers equally.

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Lead Close Rate

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.

Cost Per Acquisition

Cost Per Acquisition is a popular marketing metric that helps you measure the aggregate cost to acquire one paying on a campaign level. It is a vital tool for measuring marketing success and is different from the cost of acquiring a customer (CAC) for its granular acquisition. CPA is used in paid marketing mediums like PPC, Display, Social Media, Affiliate etc.

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Average-Order-Value

Average Order Value

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.

Customer Lifetime Value

Customer Lifetime Value is the total investment of a customer in your business, or on your products during their lifetime. It is an important figure to know because it helps you to make decisions about how much money to spend in acquiring new customers and retaining the existing ones.

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Analytics

Analytics can be defined as the discovery, communication, and interpretation of a meaningful set of data. It implies effective data patterns towards effective decision processes. It is used to optimise the survey and manage data trends over a period of time.

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How Can You Increase My Returns?

It’s a no biggie to increase ROI. All you need is a thorough strategy that ensures an increase in revenue generation. Give us a call and we’ll provide a valuable solution.
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