Return On Investment (ROI) Fashion Marketing Explained
Does this sound familiar?
“I’m spending too much money and time on marketing my brand and not getting enough sales. What am I doing wrong?!”
You need to learn how to measure success!
Let me ask you; when marketing what are we looking for?
● Don’t just look at profit …
● Don’t focus on individual transactions …
● Look at the bigger picture.
Therefore the key macro metrics to measure are:
● ROI (return on investment)
● Avg annual customer value
● Cost per acquisition
● Onboarding value
= Continued Profitable Growth.
(If you just focus on revenue, you can easily lose sight of your profit margins and drive your brand into bankruptcy)
This video will teach you how to save you TIME and MONEY by measuring your marketing success based on ROI.
ROI Transcript - Key Lessons
ROI is a key metric for understanding the success of your campaigns, marketing as a whole, and even your brand overall.
It comes down to how you use the equation.
ROI = (total benefit – total cost to achieve benefit)/total cost to achieve benefit x 100%
Benefit = revenue or profit
- It’s also important to lock in the timeframe reference for both the benefit and the costs. It’s not a fair calculation if you look at the revenue generated over 3 months but only use the costs from 1 month.
- It’s a useful calculation when wanting to understand how you’re performing over a more immediate time frame.
- You can apply the ROI calculation to a singular ad, or a whole campaign
- An important component entrepreneurs often forget is to include all the costs. This includes your time! If you don’t include the number of hours (multiplied by) your charge rate, then how will you get paid?
○ (choose $30 AUD as a base rate if you don’t know it)
"ROI is a key metric for understanding the success of your campaigns, marketing as a whole, and even your brand overall."
Now here's another question for you …
Let’s say you had $1,000 to spend on marketing your brand.
Would you rather spend $1,000 on a marketing budget and see how it went, learning from trial and error, and likely wasting a lot of the budget along the way.
Or would you rather invest $500 on a course that gave you the blueprints to grow your sales through marketing and sales strategies, templates, and real-world examples? Then spend the remaining $500 wisely on marketing and sales growth?