Return on Investment or ROI is one of the most useful metrics that should be known about a business, it is essential since it provides information on whether there is monetary gain or not through the investment that is being made. So in this article, we will discover Success stories of implementing strategies to increase the Return on Investment.
As we explained before in this article “What is the Return on Investment (ROI)? ROI Definition and Usage“, that every effort made by a company must be measured in terms of conversion and results obtained from the amount invested in it and that is exactly what ROI does.
By the way, we also discovered how to determine the ROI of your marketing actions using Return on Investment Formula or ROI Formula to Maximize the Profitability of Business Quickly.
Also, we have discovered the best Return on Investment calculator or ROI calculator to determine the ROI of your marketing actions using Online, Excel and Tools to Maximize the Profitability of Business Quickly.
In the following lines, you will discover success stories of implementing strategies to increase the Return on Investment.
Success stories of implementing strategies to increase the Return on Investment
Considered the second largest recruitment firm worldwide, this company decided to resort to Inbound Marketing strategies to increase its ROI and its website had a lot of traffic but poor results in terms of search engines.
According to the Inbound Marketing Hubspot Software, the company offered its visitors striking content to download but did not have an effective way to capture and feed leads.
Randstad content manager Anthony Hodge says:
“The old website had a basic function to capture leads, it was very corrective. You had to spend a lot of time organizing the data and there was no download verification process.”
Randstad decided to use Hubspot to optimize the return on investment by offering its visitors personalized content and through smart landing pages, forms, and calls to action, increase the number of leads so that your ROI would automatically be increased.
Hodge used Workflows applications to organize those leads and grow them with customized campaigns according to their needs. The results? After implementing Hubspot’s Inbound strategies, Randstad obtained more visits (56% more) and qualified leads quadrupled.
In terms of return on investment, the most relevant results are represented by a conversion rate that rose to 40%.
The problem presented by this organization was its desire to increase the number of alumni recruited to continue studies at the School of Public Policies.
For a long time, they had relied on paid advertising to attract prospects to their online graduate programs. However, they were dissatisfied with the results, which led them to replace the outbound with Inbound Marketing strategy.
To improve the results they had generated through paid advertising, they adopted the content automation strategy to enhance the enrollment in online graduate programs.
Founded in 2011 by Richard Doherty and Jim Devlin at the beginning they only used traditional outbound methods to build and give visibility to their business, but after realizing the impact that a good website and good SEO could have on their generation activities leads, decided to try Inbound techniques.
Based on the decision to implement Inbound strategies, the team focused on converting those visits into qualified leads.
Using landing pages, they made their contents available through forms and built detailed profiles to feed their databases.
The personalization of the actions generated an increase of more than 70% of its leads that used a free coffee tasting session and later became clients.
Results? 74% annual growth in web traffic and 40% growth in profits.
Resolved examples of Return on Investment “ROI”
Imagine that we are going to calculate the ROI of a small local business called “Buy It Now” that is dedicated to the sale of mobile equipment. To grow your business, you have 2 investment proposals, the first one has an investment projection of 5 years, while the second one is for 7 years. Let’s see which of the 2 is the most convenient:
For proposal 1, The sum of net flows is $ 40,000, with an initial investment of $ 22,000. So to calculate the ROI, we have the sum of all net flows / the number of years:
40,000 / 5 = 8,000
And the result divides it with the initial investment:
8,000 / 22,000 = 36.3
The ROI for the first proposal is 36.3%, now let’s see how the 2nd proposal would look like:
With net flows of $ 60,000 and an initial investment of $ 40,000, taking into account that this proposal is projected in 7 years, the calculation would be as follows:
60,000 / 7 = 8571
And the result of dividing it with the initial investment:
8517 / 40,000 = 21.4
Proposal 1 is the most profitable.
What is the ideal Return on Investment “ROI”?
In general, a good average return on investment would consist of a return that exceeds the average rate of return of the stock market.
Conservative investors would be satisfied with a return that solves or simply exceeds the average performance of the stock market.
For example, an aggressive investor would seek a return that greatly exceeds the average return on investment. Therefore, the answer to the question “What is a good return on investment” is quite relative.
Also, the scale of a good average return on investment can change greatly based on macroeconomic conditions.
Therefore, the best way to approach the search for a good average return for a stock or mutual fund is to find the most appropriate benchmark for measuring performance.