Return on investment, or (ROI), is the ratio of your company's net profit compared to your financial investment in the business. Finding ways to increase your investment return can be challenging, but implementing effective strategies can help you find the breakthrough into profit margins. Increasing your return on investment can be achieved through a variety of methods, such as your ability to properly manage the business finances or adopting effective marketing strategies.
Allocate Your Budget Appropriately
Spend on what is working for your business. If you have tried effective strategies that have produced positive results, consider increasing the budget for these strategies to push further gains. Testing new strategies is also advisable but within a reasonable, less extravagant budget. Testing may not give an immediate ROI but may lead to the discovery of better strategies for the future.
Widen Your Online Presence
Consumers have continued to show great interest in online and mobile commerce. Ensure that your company has a custom website that best suits your business model. Create social media platforms that appeal to prospective followers. Widening your online presence will help you attract new customers, eventually translating to a better return on investment.
Invest in SEO
Search engine optimization (SEO) is the process of modifying your website to increase its visibility for specific searches. One of the main objectives of search engine optimization is to grow the quality of traffic to your site. SEO can help you attract anyone with intent at a given point in time, no matter which stage of the buying funnel they are in. An increase in quality traffic to your website means increased conversion rates.
Collaborating with Micro-influencers
Collaborating with micro-influencers is a great way to connect with a niche audience. These social media leaders usually have highly-engaged followers who can help spread the word about your product or service, helping boost your ROI potential. Micro-influencers usually offer partnership rates or barter agreements for their sponsored content, allowing businesses to choose the type of collaboration model that works best for them.
Automate More Tasks
If you embrace automation to limit repetitive jobs for your employees, you can optimize productivity and funnel energy into other tasks that improve ROI. For instance, you could consider implementing chatbots to handle repetitive questions from potential customers. Customer service and sales teams can handle more requests that address unique questions, troubleshoot issues, and close deals.
Revamp Sales Procedures
Analyze your sales procedures to determine changes that may be necessary for boosting business profits. Closing a sale is the most critical point of the customer journey, and poorly executed sales procedures can result in lost opportunities. For eCommerce businesses, checking out online should be a smooth process with minimal barriers to completion. For example, if you require that a customer registers before checking out, instead of completing the purchase as a guest, you might see an increase in abandoned carts. For sales that require direct contact with a team member, ensure that communication is timely and provides sufficient information for a client to proceed confidently.
Consider Hiring More Freelancers
Many businesses across the globe are shifting from traditional methods of full-time employment to hiring freelancers for specific jobs. Hiring skilled and competent freelancers can help your business achieve the results you seek without the extra expense of full-time employees. Businesses can reduce the cost of benefits, like health insurance, paid sick leave, and tuition reimbursement, that is typically offered to full-time staff. Freelancers can also save a company money on training costs, equipment, and overtime hours.
Track the right metrics
Tracking the right metrics will give you critical information to influence your financial decisions. By identifying the strengths and weaknesses of your business strategies, you can optimize the most profitable areas while finding better alternatives for segments that do not contribute their fair share. A lean organization with a strong ROI is one that constantly reviews performance reports to target the best dynamic business model.
Increasing your company's ROI is a critical step in your business' success. With growing profits and sustainable practices, companies can reinvest in their core strategies, fund expansion, or diversify their product and service portfolio. At Sentinel Business Centres, our professional staff can help support your business with years of experience in Dubai and the Middle East region, from business setup to fully serviced offices, admin services, and more. Contact us today to learn more.