looking for roi & happiness: building a sustainable internet marketing strategy
DESCRIPTION
Level: Beginners Best for: Online Business Owners Designed for: Brilliant Lab's Tech Guru Program (Sponsored by Kuwait Ministry of Youth) Presented by: Mohammed AlModhayan This presentation emphasizes on the importance of keeping track of return on investment (ROI) from internet marketing. Understanding the facts and rules discussed in this presentation should make business owners and marketing executives rerank ROI as most important KPI to be followed by reach, frequency, virality, engagement, etc. Hope you enjoy the contents of this presentation. Best regards, Mohammed AlModhayanTRANSCRIPT
LOOK ING FOR ROI & HAPPINESS
B U I L D I N G A S U S T A I N A B L E I N T E R N E T M A R K E T I N G S T R A T E G Y
THIS PRESENTATION HAS BEEN DESIGNED FOR BRILLIANT LAB’S TECH GURU PROGRAM, SPONSORED BY KUWAIT’S MINISTRY OF YOUTH
P R E S E N T E D B Y : M O H A M M E D A L M O D H A Y A N
ABOUT TMD
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LIE
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CALCULATING ROI
𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡 (𝑅𝑂𝐼) =𝑅𝑒𝑣𝑒𝑛𝑢𝑒𝑠 𝑓𝑟𝑜𝑚 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡
𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡− 1
𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝑀𝑎𝑟𝑘𝑒𝑡𝑖𝑛𝑔 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡 (𝑅𝑂𝐼) =𝑅𝑒𝑣𝑒𝑛𝑢𝑒𝑠 𝑓𝑟𝑜𝑚𝑀𝑎𝑟𝑘𝑒𝑡𝑖𝑛𝑔
𝐶𝑜𝑠𝑡 𝑜𝑓 𝑀𝑎𝑟𝑘𝑒𝑡𝑖𝑛𝑔− 1
RULEThe Higher Your ROI, the Happier You Should Be
RULEIf your ROI without marketing is GREATER than your ROI with
marketing, then YOUR MARKETING SUCKS!
FACTYou can take control over ROI!
From the above, we drive the following
Generally,
Revenues without Advertising/Marketing = KWD ___________ (enter your business’s estimate or KWD 2,500)
Revenues when Advertising/Marketing = KWD ___________ (enter your business’s estimate or KWD 4,000)
Costs of Goods/Service Sold (excl. Costs of Advertising/Marketing) = KWD ___________ (same or KWD 1,000)
Costs of Advertising/Marketing (Media & Production) = KWD ___________ (same or KWD 1,000)
𝑅𝑂𝐼 𝑤𝑖𝑡ℎ 𝑀𝑎𝑟𝑘𝑒𝑡𝑖𝑛𝑔 = ______________%
𝑅𝑂𝐼 (𝑤𝑖𝑡ℎ𝑜𝑢𝑡 𝑀𝑎𝑟𝑘𝑒𝑡𝑖𝑛𝑔) =𝑅𝑒𝑣𝑒𝑛𝑢𝑒𝑠 𝑤𝑖𝑡ℎ𝑜𝑢𝑡 𝐴𝑑𝑣𝑒𝑟𝑡𝑖𝑠𝑖𝑛𝑔/𝑀𝑎𝑟𝑘𝑒𝑡𝑖𝑛𝑔
𝐶𝑜𝑠𝑡𝑠 𝑜𝑓 𝐺𝑜𝑜𝑑𝑠 𝑆𝑜𝑙𝑑− 1
𝑅𝑂𝐼 (𝑤𝑖𝑡ℎ𝑜𝑢𝑡 𝑀𝑎𝑟𝑘𝑒𝑡𝑖𝑛𝑔) = − 1
𝑅𝑂𝐼 𝑤𝑖𝑡ℎ𝑜𝑢𝑡 𝑀𝑎𝑟𝑘𝑒𝑡𝑖𝑛𝑔 = _______________%
𝑅𝑂𝐼 (𝑤𝑖𝑡ℎ 𝑀𝑎𝑟𝑘𝑒𝑡𝑖𝑛𝑔) =𝑅𝑒𝑣𝑒𝑛𝑢𝑒𝑠 𝑤ℎ𝑒𝑛 𝐴𝑑𝑣𝑒𝑟𝑡𝑖𝑠𝑖𝑛𝑔
𝐶𝑜𝑠𝑡𝑠 𝑜𝑓 𝐺𝑜𝑜𝑑𝑠 𝑆𝑜𝑙𝑑 + 𝐶𝑜𝑠𝑡𝑠 𝑜𝑓 𝐴𝑑𝑣𝑒𝑟𝑡𝑖𝑠𝑖𝑛𝑔− 1
𝑅𝑂𝐼 (𝑤𝑖𝑡ℎ 𝑀𝑎𝑟𝑘𝑒𝑡𝑖𝑛𝑔) = − 1
EXERCISE A / LET’S CALCULATE ROI
A HAPPY STORY
“We Have What You Need, and it costs $5”
Said the Ad
I NEED…
OK, TAKE WHAT YOU
NEED
TAKE MY $5
Awarenessof Need
Research
Decision
Guys!I got what I need
for $5 Only!
Loyalty andRecommendation
THE HAPPY STORIES FUNNEL
Recommend & Repurchase
DecisionResearchIdentify Needs
MAXIMIZING ROI & HAPPY STORIES ON THE INTERNET
ShareHard Conversion
Soft Conversions
WebsiteVisitors
Search
Direct Traffic
Advertising
Social Media
Referral
𝑪𝒐𝒏𝒗𝒆𝒓𝒔𝒊𝒐𝒏 𝑽𝒂𝒍𝒖𝒆 =𝑹𝒆𝒗𝒆𝒏𝒖𝒆𝒔 𝒇𝒓𝒐𝒎 𝑪𝒐𝒏𝒗𝒆𝒓𝒔𝒊𝒐𝒏𝒔
𝑪𝒐𝒏𝒗𝒆𝒓𝒔𝒊𝒐𝒏𝒔
𝑹𝒆𝒄𝒄𝒐𝒎𝒆𝒏𝒅𝒂𝒕𝒊𝒐𝒏 𝑽𝒂𝒍𝒖𝒆= 𝑪𝒐𝒔𝒕 𝒐𝒇 𝑪𝒍𝒊𝒄𝒌 𝑿
𝑺𝒉𝒂𝒓𝒆𝒔 𝑿𝑪𝑻𝑹 𝑿
𝑪𝒐𝒏𝒗𝒆𝒓𝒔𝒊𝒐𝒏 𝑹𝒂𝒕𝒆
𝑪𝒐𝒔𝒕 𝒑𝒆𝒓 𝑪𝒐𝒏𝒗𝒆𝒓𝒔𝒊𝒐𝒏 =𝑪𝒐𝒔𝒕 𝒐𝒇 𝑪𝒍𝒊𝒄𝒌𝒔
𝑪𝒐𝒏𝒗𝒆𝒓𝒔𝒊𝒐𝒏
𝑪𝒐𝒔𝒕 𝒑𝒆𝒓 𝑪𝒍𝒊𝒄𝒌 (𝑪𝑷𝑪) =𝑪𝒐𝒔𝒕 𝒐𝒇 𝑪𝒍𝒊𝒄𝒌𝒔
𝑪𝒍𝒊𝒄𝒌𝒔
Aware of Need
𝑪𝒐𝒏𝒗𝒆𝒓𝒔𝒊𝒐𝒏 𝑹𝒂𝒕𝒆 =𝑪𝒐𝒏𝒗𝒆𝒓𝒔𝒊𝒐𝒏𝒔
𝑾𝒆𝒃𝒔𝒊𝒕𝒆 𝑽𝒊𝒔𝒊𝒕𝒔
𝑪𝒍𝒊𝒄𝒌 𝑻𝒉𝒓𝒐𝒖𝒈𝒉 𝑹𝒂𝒕𝒆 (𝑪𝑻𝑹) =𝑪𝒍𝒊𝒄𝒌𝒔
𝑰𝒎𝒑𝒓𝒆𝒔𝒔𝒊𝒐𝒏𝒔
EXERCISE B / SPOT THE CONVERSION OPPORTUNITIES 1
1. Draw circles around soft conversion opportunities2. Draw a circle around 1 or 2 hard conversion opportunities
EXERCISE B / SPOT THE CONVERSION OPPORTUNITIES 2
1. Draw circles around soft conversion opportunities2. Draw a circle around 1 or 2 hard conversion opportunities
EXERCISE B / SPOT THE CONVERSION OPPORTUNITIES 3
1. Draw circles around soft conversion opportunities2. Draw a circle around 1 or 2 hard conversion opportunities
EXERCISE C / LET’S OPTIMIZE ROI
KWD 1,500 KWD 2,000 KWD 0
KWD 200 KWD 400 KWD 100
100 500 20
KWD 1,750 KWD 4,500 KWD 150
KWD ______ KWD ______ KWD ______
______ % ______ % ______ %
Costs of Paid Impressions
Conversions
Revenues
Revenue per Conversion
ROI
Facebook Google Twitter
Costs of Content
Cost per Conversion KWD ______ KWD ______ KWD ______
1. Calculate Cost per conversion2. Calculate Revenue per conversion3. Calculate ROI (note: ROI= Cost / Revenue -1 * 100%)4. Draw a circle around ROI Optimization opportunity
EXERCISE C / LET’S OPTIMIZE ROI (POST OPTIMIZATION)
Costs of Paid Impressions
Conversions
Revenues
Revenue per Conversion
ROI
KWD 0 KWD 3,500 KWD 0
Facebook Google Twitter
Costs of Content KWD 200 KWD 400 KWD 100
20 875 20
KWD 175 KWD 7,875 KWD 150
KWD 17.50 KWD 9.00 KWD 7.50
75 % 102 % 50 %
Cost per Conversion KWD 10.00 KWD 4.80 KWD 5.00
TOTAL ROI = 95% (USED TO BE 52%)
REMEMBER!
TRACKING ROI? PROFITABILTY? RISK
NO NEGATIVE HIGH
NO POSITIVE HIGH
NO VERY POSITIVE HIGH
YES NEGATIVE MEDIUM
YES POSITIVE LOW
YES VERY POSITIVE VERY LOW
RULE: Always keep an eye over ROI
RULE: Your marketing sucks when ROI without marketing is greater than your ROI with marketing
RULE: Take control over ROI!
ASK ME YOUR QUESTIONS ON LINKEDIN & GOOGLE
sa.linkedin.com/in/modhayan/
+MohammedAlModhayan
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