Why ROI Matters More than Traffic and Rankings

Digital marketing can drive long-term growth. Yet, most online marketing strategies fail.

What if you spend thousands driving online traffic to your site–only to come away without any sales? It’s possible to avoid this expensive fate.

But, it requires you to challenge some digital marketing assumptions. First: don’t overthink rankings. 

Rankings are Overrated

Google evaluates a website’s trustworthiness and relevance. But, recent changes make this rank less relevant. 

Google emphasizes personalized results more than it used to. Now, a website’s placement in search results might vary considerably depending on who’s searching. 

This makes it harder to use keyword planning to drive inbound marketing strategies. But, it makes other marketing strategies easier. Google’s changes enable marketing strategies that prioritize ROI. 

Quality Over Quantity

Leads aren’t sales. While there is some correlation, it’s wise to keep track of your conversion rate. This is the percentage of people who visit your site that eventually become customers. 

Google will show different search results to different users. It considers the user’s location, device, and search history when it displays results.

This encourages conversion rate marketing. Focus on people the most likely to become customers. Then, orient content to convert those people specifically. 

You can use this consideration to get your website in front of your target customers. Build a marketing strategy aimed at high-quality leads. This will net you a solid ROI. 

What is ROI?

ROI stands for “return on investment.” You can calculate your ROI by subtracting the cost of your investment from the current value of that investment. Then, divide that sum by the cost of the investment. 

Your investment is any marketing expenditure. Your investment’s current value is any resulting increase in profit. 

Why ROI Matters

Ultimately, ROI is the metric that tells you if your marketing strategy works. If your paid search advertising costs more than it brings in, it’s not a winning strategy. Instead, generate leads that are more likely to convert.  

Conversion Rate Affects ROI

A small conversion rate increase can improve ROI. For example, imagine a furniture company spends $25,000 on a digital marketing campaign. 

The company makes a gross profit of $50 on every piece of furniture they sell. They typically get around 100k visitors to their website every month.

If the company’s conversion rate is 1%, they sell 1000 furnishings and make a $25,000 profit. But if it increases conversion to 2%–only a 1% difference–its profit triples

This is because the total gross orders double. Yet, the amount the company spent on the digital campaign stayed the same. 

Increase Your ROI

Granular strategies to increase your ROI vary by industry. But, there are a few concepts that work across the board.

Create a Customer Profile

A customer profile is the persona of your ideal buyer. It should include their income, location, and other demographic information. You should also consider this customer’s pain points, and how you might address them. 

Rethink Search Engine Optimization

Keywords aren’t as important as they used to be. But, featured snippets are vital.

Google will pull snippets of high-quality, informative content from lower-ranked results if it thinks the information is relevant. Likewise, videos and image packs positively affect a strategy to generate qualified leads. 

Consider a Consultant

A marketing strategy consultant knows the market. They can empower your brand to develop a specific strategy to address specific market gaps. 

A digital marketing consultant stays abreast of current SEO best practices. Yet, they won’t overwhelm you with always-changing information. You can stick to the part of your business you’re best at. 

Improve Your Return on Investment 

Digital marketing challenges us to think creatively. Ignore rankings. Connect with your people. 

Did you enjoy this article? If so, then be sure to check out the rest of our website for more great content!


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