ROI Strategy

Looking for a full ROI-based strategy tailored especially to your business model? We can help.

A well-defined ROI strategy helps define (or redefine) your cost per acquisition (CPA) target. A sophisticated ROI model should incorporate an understanding of ROPO (Research Online Purchase Offline) consumer behaviours and LTV (life-time value, or repeat purchase within a defined period).

Let’s take a step back. So what’s ROI? Return is your revenue minus your cost divided by your investment. Revenue should include online and offline transactions as well as repeat transactions. Your costs include your media costs, your agency or consultant costs and your internal resources.

How ROI is typically applied to marketing

But are you measuring the right metrics as part of your ROI strategy? Your individual business model will help define your online ROI. Are you purely online? Do you have an offline presence? Do you have a call centre? Depending on the stage of the buying cycle, your success metrics will vary.

We also look at your consumer’s behaviour. Is their online search triggered by another channel you have invested heavily in such as TV or print media? Or perhaps they have found you online but then purchased offline. Online CPA could be significantly lower when considering consumer behaviour around researching online, purchasing offline.

Search ROI could be overestimated

Search ROI could also be underestimated

So how does it affect your ROI for online marketing? Let’s look again at the ROI model from above but make some assumptions based on these consumer behaviours.

Higher ROI with the same CPA

Adjust CPA while ROI remains

Any ROI model that does not consider Research Online, Purchase Offline behaviour is not beneficial.

FirstClick will tailor your ROI metrics based on a deep understanding of your business model. We’ll then develop a sophisticated ROI strategy to ensure your marketing dollars go further.

Our performance-based approach and premium service have enabled us to develop a blue-chip client list that includes Medibank, ahm, News.com.au. Foxtel, Toyota and Lexus.

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