An MSP business that has a strong marketing campaign will be able to demonstrate that on paper in terms of return on investment (ROI). Ultimately, the marketing budget you have should continuously expand. Why? Well, good marketing results in conversions. Conversions increase revenue. Increased revenue allows you to spend more on effective marketing, and so an upward spiral is established.
Metrics to Use for ROI Determination
In order to figure out if you’re seeing any ROI from your outreach, it’s important to use representative metrics. There are a number of different key performance indicators (KPIs), you can use for such metrics. Here, we’ll cover some general indicators that will help you get an idea if you’re seeing ROI or not:
Expanded Sales, Value of Conversions, Expense Per Conversion
Definitely, marketing that’s effective expands sales. However, if those sales are for knick-knack devices or cheap services, then conversions alone may not be effective metrics to determine if you’re seeing ROI. You need to weigh conversions based on the total value they bring.
You can’t stop there, though; you’ve got to subtract the sum you spent in marketing from conversions which have value. If when you subtract marketing expenses you haven’t profited, then what you’re doing may not be working.
Total “Lifetime” Value of Prospects After Conversion
Your MSP business should be seeking long-term outcomes. That is to say: a very valuable conversion that’s a “one-time” deal isn’t as valuable as a long-term client who builds a business relationship with you over many years.
You’re looking for that long-term relationship. Accordingly, seek “big ticket” leads with your marketing that, when they convert, will do so with a high level of value, a low level of marketing expense, and under a long-term relationship with your MSP.
Expansion of Revenue
Marketing that’s done right will definitely increase your overall revenue. Here’s what you want to think about: if your marketing costs aren’t backed up by profit, then why do you keep allowing resources to be devoted toward them?
Optimization is always possible one way or another. Seek consultation if you’re having difficulty, or if you’re in the stage of the game where you’re trying to establish a new effective marketing solution. Measure revenue prior to your marketing life cycle with the new techniques, and after. When you’re doing the job right, you’re very likely to see an increase.
More Effective Marketing Outreach Happens When ROI Is Determined
When your MSP business uses relevant metrics to determine marketing effectiveness, you’ll waste fewer resources. A few KPIs you can focus on in terms of metrics include an expansion in sales and conversion value, costs per conversion that makes marketing cost worth it, more valuable prospects converting to your services, and an expansion in overall revenue. Such indicators show a successful marketing campaign.