Tuesday, 21 February 2012 10:09

Be committed to tracking clear ROI figures, says expert

Written by Paul Smithson

Firms must track where their income is being generated from if they want to record meaningful return on investment (ROI) figures.

This is the view of Mark Bouris, executive chairman of wealth management company Yellow Brick Road, who accepted on The Sydney Morning Herald's My Small Business column that ROI can be difficult to measure.

Mr Bouris told business owners to look at how much money they have spent on advertising such as email marketing, then subtract this from the quantity of revenue it has generated to see whether the investment was worthwhile.

To make this work properly, people must be able to track referrals. This will allow people to tell when someone has got in contact or purchased a product as a result of a certain type of promotional material.

The finance expert offered his advice in response to a reader letter, which had asked about the best ways of judging the effectiveness of marketing spend.

However it is not always necessary to increase a marketing budget to boost its results, according to Walter Dailey of radio advertising firm DSV Media. He noted on Fox Business that some alterations do not cost anything to carry out.

For example, he said: "Use your email signature as a marketing tool. Below your contact info, include things like: quotes from happy customers, a link to your webpage, product info and so on."