Branding Vs ROIJames Cox
Your business needs to make sales. That’s not up for debate. However, what is up for debate is how it can generate the most sales without breaking the bank. There are several services available to increase traffic and sales online. Finding which ones will work best for you, how much of a budget you can put into those services and being patient while they grow are the keys to generating real revenue. It all starts with knowing what a real return on investment should be and how to build it up the right way.
How Real Branding Works
Someone needs to make a purchase they usually do not make, like ant spray. They go to the grocery store and they are standing in front of the area that has all the ant sprays in order. The fact is that the first one picked up and considered for purchase is going to be based on price or brand familiarity. The only way someone will buy something from a company they are not familiar with is if it has the lowest price. However, that may also deter them as they feel that cheap price is a reflection of quality.
If someone trusts your company they are more likely going to make a purchase with you regardless of your price. So how do you build that trust? Believe it or not, trust is built by word of mouth, familiarity and activity.
- Advertising: Whether it’s email marketing, social media, blogging, banner ads, television and radio or any other form, getting your name out there as often as possible is paramount to the success of your business.
- Word of mouth: Give your customers reason to brag about you. Create rewards packages, have contests, encourage them to tag you on social media or share your updates.
- Stay in contact: When someone does make a purchase with you make sure that you get their contact info and contact them via email and social media.
Why ROI Is Misleading
When you invest in the stock market you understand that you may get a return on that money and you may not. When you buy a new home you understand that it may go up in value or it may not. Both of those investments have risk and you understand that the real return on investment may take years to reach their full potential. So why are the rules different for marketing? People honestly believe that if they invest $100 into advertising they will get $500 in return, immediately. Here are the facts about ROI with digital marketing:
- You have to build a brand. Customers will connect with you and show loyalty if they recognize your brand. If they are not familiar with who you are they will be hesitant to give you their money.
- Sales come after branding, not before.
- Jealousy isn’t a good thing. If you have a small dealership you cannot look at what the big guys are doing and demand the same thing. Learn some tips from their strategies but never try to duplicate what they do if it doesn’t fit your budget.
The Brand Doesn’t Have To Be Yours
One thing companies fail to realize is that they do not have to use their own brand to make sales. For example, if you sell products you can use platforms like eBay and Amazon to reach millions of customers. Because these platforms protect the consumer, they are more likely to make a purchase with an unknown company.
The bottom line is that the only way to improve your ROI is to build your brand up first and then pursue sales. Once you have real brand recognition you will see higher conversion rates in email, social media, SEO, display ads and other methods. Until then you will have to pay more for conversions if you want to generate real leads. It all comes down to patience, budget and having a sound strategy. If you can generate those three things you will see a better return and better results.