As a founder, ensuring that your marketing investments yield the best possible return on investment (ROI) is crucial. It's not just about spending money on marketing; it's about spending it wisely and effectively. Here are four strategies to help founders get better ROI from marketing efforts.
1. Accountability in Marketing: Internal and External
For External Vendors: Regularly assess if external vendors are fulfilling their contractual obligations. It's common to encounter situations where the scope of work isn't delivered as promised. By holding vendors accountable for their commitments, you can ensure they provide the results your business needs.
For Internal Teams: Maintaining a consistent approach to marketing efforts is essential. Marketing requires ongoing attention and analysis. As a founder, you might get distracted by other business areas, leading to neglect of marketing initiatives. Ensure your internal team remains focused and accountable for continuous progress in marketing efforts.
2. Doubling Down on What Works
Often, founders are tempted to explore new channels for revenue generation, spreading their efforts too thin. However, especially for smaller businesses (under $2 million in revenue), focusing on a single, proven channel is usually more effective. As your business grows (revenue between $3 to $5 million), you might identify two or three channels that drive revenue. The key is concentrating on these successful channels and investing more in them rather than experimenting with numerous untested avenues.
3. Tracking and Expecting ROI
A common oversight is not setting clear ROI expectations or tracking them effectively. When working with vendors or hiring internal staff, apply the "3x rule": expect the service's total cost or employment to yield three times its value. Challenge your team or vendors to explain how they will deliver this ROI, showcasing similar results they've achieved. The likelihood of achieving a better ROI from marketing diminishes if they provide a satisfactory explanation or if data increases.
4. Shifting Focus to Achieve Better ROI from Marketing
Distinguish between general marketing activities and revenue marketing. While branding, content creation, and social media presence are essential, they fall into the broader marketing category. Revenue marketing, on the other hand, directly drives sales. It's crucial to correlate your marketing spend and activities with tangible sales results. If you can't link your marketing efforts to actual revenue, you're merely doing marketing, not revenue marketing. For a deeper understanding, refer to our detailed article on this topic.
Implementing these strategies can significantly improve the effectiveness of your marketing efforts. Remember, effective marketing isn't just about visibility; it's about driving tangible, measurable growth for your business. Contact us to go from founder revenue to scalable revenue today!