There are a lot of myths and black magic surrounding return on investment (ROI) in regards to content marketing. Most store owners have heard the old adages like, “play the long game and it’ll pay off someday” or “becoming a knowledgeable voice and the buyers will seek you out”. Shop owners have a lot of fish to fry and it’s hard to justify such a cumbersome task that has an intangible ROI.
More importantly, a LOT of money and resources is spent promoting and creating this content. Finding a more actionable and optimized method for ROI with your content marketing can lead to impressive revenue jumps.
Drew Sanocki is often given credit for creating this golden rule of Content Marketing Growth Multipliers. He breaks down content marketing into three categories.
Number of Leads x Purchase Frequency x Average Order Value (AOV)
Drew is often keen to point out that very few people think about the money earned from content marketing and their main goal is just to increase the number of leads (or impressions) from each post. We’ll dive into the three multipliers and learn which is the most important to optimize, and which aren’t as important as you’d think.
Number of Leads
This is the multiplier that most folks get wrong. Increasing this number without putting thought into Purchase Frequency or AOV won’t yield you favorable results. When the other multipliers are a secondary thought, marketers are then eager to load the page with obnoxious calls to action i.e. pop-up information, flashing adds, scroll through ad- content and the list goes on…
The biggest concern in this multiplier is providing your reader value and information. Well written content will create a call to action for the reader. Their mind will naturally start to follow your lead – chances are if they’re reading your persona specific content, they’re in need of what you’re offering.
Get creative and subtly with your calls to action. Hyperlinks embedded in the content and quotes from a professional in the domain will do wonders with this multiplier.
Now that we’ve collected our list of leads from the value-driven content – it’s time to get them to open their wallets.
Chances are you spent some coin to acquire that lead, so we want to do everything in our power to convince them to purchase. A single purchase is fantastic, but once you snag a repeat customer – margins decrease because of your lower acquisition cost. That’s why the last two multipliers are crucial.
“Tripwire” products are a common practice to incentivize first time buyers. Tripwire products are discounted goods sold with the hope that they will lead to repeat business down the road. A/B testing different products to optimize your promotion is also encouraged.
After any new customers convert, use targeted campaigns to show them other best selling product from your store in hopes recurring purchases. Sandbox Commerce’s Engagement Hub offers marketers rich and actionable data to help segment user behavior.
Increasing Average Order Value
Customers are now purchasing from us at a more frequent rate, the last piece of the equation is to increase how much they spend on each transaction.
Bundling products that complement each other is an age-old way to increase AOV. Offering two items that pair well with each other, at a discount, creates urgency with the buyer. Don’t let the discount freak you out – you’re still boosting the AOV.
It’s easy to think that increasing your number of leads is the key, but in reality, it’s much more difficult to scale. By focusing and optimizing on purchase frequency and increasing average order value, you can increase (and finally calculate) ROI from content marketing.