Find out how to measure your return on investment right now.
If you are an owner or manager of a retail store, its marketing probably plays an important part in the operations. Every store owner understands the importance of marketing efforts to their bottom line. What remains difficult to understand is how to determine which marketing efforts work best, which means determining the ROI.
There are several ways to determine the ROI of marketing efforts. Many of them involve IT backends, and all of them include data management. After all, how can you measure ROI for anything without data analysis?
It's not easy, but it's possible to measure ROI when marketing a retail store if you know how many units of say, Clipstrip sign holders you have sold. It involves a series of steps and requires you to plan early.
Here are the best tips to help you in the process:
For instance, the sale of a particular product on a discount can easily be measured if you plan to promote an offer through a paid advertising channel actively. On the other hand, if your goal is to 'build your brand,' it may be a lot tougher for a retail store to determine the level of brand awareness before and after a marketing campaign.
You will need to pray to data! Measurement of ROI is purely a numbers game and the more data you have, the better.
You not only have to measure the impact of your campaign on a particular business metric but also spillover deviations from the past or concurrent campaigns, the impact of external factors, duration of the campaign, and even more, data oriented factors such as diminishing returns with an increase in spend.
The more you measure, the easier it will be for you to determine the ROI of a campaign. One simple example of good measurement of metrics is using a unique coupon code for say, a newspaper or radio advertisement, and then determining the number of sales executed.
Asking customers for suggestions and feedback and then politely including questions such as "Where did you hear about our store?", will help you a great deal in determining what campaigns are providing good ROI.
For more information about this topic, read 4 Ways In-Store Retailers Can Measure ROI.