Forgive us for the trick question that has been posed by this week’s blog title. Perhaps, we should have asked the question a different way. Is there anything more important than ROI for your business? At SIClytics, we think not. And that’s because your returns on your investments can literally make or break your business. We’re talking about the easy-to-digest concept of making more money than you spend. It’s truly the only way for a business to succeed!
This is why we consider it so important for companies to track their returns on investment. As Sandi Smith Leyva points out on Intuit.com, “tracking ROI can help us measure how profitable a past expenditure has been. It can also help us objectively evaluate the potential profit of an expenditure we may be considering…Using ROI, we can learn from past purchases to get smarter about future ones.”
She goes on to note that many entrepreneurs are so well-versed in their respective industries that they often “go with their gut” when making business decisions. And while Leyva doesn’t completely dissuade business owners from trusting their instincts, she believes that applying ROI can help them to choose their spending options wisely.
“Managing and tracking ROI will help us avoid purchases that may be influenced by unwarranted optimism,” she writes, “As entrepreneurs, we tend to be very positive, hopeful people. ROI can help us make decisions that are more grounded for our businesses, so that we are not purchasing every ‘bright and shiny’ object that comes along and promises to make our lives and businesses better.”
It all comes down to getting your money’s worth. Simply put, it’s important to ensure that the money you spend on growing your business actually grows your business. To know if you’ve truly done this or not, Leyva suggests that you take a few steps before spending your money. Firstly, she advises business owners to list all of their costs including their time spent as well as the revenue that can be directly attributed to the items being evaluated.
She also recommends that you list all intangible benefits and costs and compare your revenue to your costs. “Are you in the black or in the red?” Leyva insists you ask yourself. Finally, consider future years to see if it turns around in years two and three and continue to use your gut instincts when making your spending decisions.
At SIClytics, we agree that using ROI can make your business more profitable in a short amount of time. This is why we offer Call Tracking services which are able to specify which of your advertising methods generate the most phone calls to your business! As explained, it’s important to be able to pinpoint which of your marketing strategies encourage the most phone calls to your business. By understanding which advertising methods are the most successful, you can better manage your overall advertising budget for years to come, improving your ROI!
For more information about our Call Tracking services, please don’t hesitate to call us at 1-877-374-6003 or email us at sales@SIClytics.com.