Focusing on ROI Could Be Your #1 Mistake
The most frequently asked question in marketing is “what’s the ROI?”
ROI, or return on investment, is described as “the amount expressed as a percentage, that is earned on a company’s total capital calculated by dividing the total capital into earnings before interest, taxes,or dividends are paid.”
Basically ROI is how much you make relative to your investment.
Focusing on your ROI becomes tough, especially when you are trying to justify it over time.
There is no ROI when you send a survey or ask your client a question so you can help them.
There is no ROI in sending a free solution to solve your client’s problems.
There is no ROI in maintaining high-end client support for your email list.
There is definitely no ROI in making it a point to reply every message you receive.
Here’s why you need to shift your focus away from ROI
Turn the question away from “how much is my ROI” and start asking yourself instead, “What’s the value of a lead over a year?”
When you think of ROI, you typically think of the immediate benefits. You neglect the value generated over time. When you begin to place your emphasis on value over time, you can restructure your systems to create stronger relationships with clients instead of just looking for the ROI transaction.
What happens when you operate this way? Customers notice. They feel the “care” and they respond with:
- More transactions, more frequently
- More trust with the company, opening the door for you to be their trusted advisor
- Increased awareness of the Brand
Building the heart of a long-term value system with your clients
Here is an example of a system that you can create to build long-term value with our clients:
Put together a dedicated team that is solely responsible to
- create epic content in the space you operate,
- get celebrity/authority interviews,
- create fresh unique original posts,
- bring free solutions that people can use in their lives, and
- present great deals and irresistible offers to clients.
Create a system around it.
Create a system that allows you to create quality content consistently, easily and inexpensively- and then send it out to relevant customers through various channels like Email and Facebook.
By doing this you begin experiencing quick results. There is a surge in open and click-through rates to your emails. Your Facebook page gains traction, and most importantly, your revenues shoot up.
This system is not only built for loyalty, it also increases the value of your clients.
By giving customers great value, they return back to your websites and purchase more.
5 Steps to Increase Your Customer Value
So here are action steps to translate it back to your business:
Create a sequence for sending out valuable material for your list. Not all of the content has to be yours, but you do want to be seen as the authority, or their trusted advisor.
Even if you don’t have the time to implement this yourself, you can find a team to do it for you. At the very least, you will need to implement content generation.
Deploy a small team dedicated solely to this task (it can be a one-person team to start with).
Implement tracking to measure your results. Your follow through will be stronger when you KNOW that you are creating more value for your customers.
Go all out!
While you’re at it, remember that creating a client is hard—real hard.
Wowing a customer that you already have is so much easier than trying to impress a potential customer. This is the reason an existing customer is more valuable than the one you haven’t gotten yet. This is where your focus needs to be.
Share this article and also share your thoughts with us. How are you serving your clients, and what have you done that accidentally or knowingly created more sales?