Marketing and advertising are excellent tools that restaurant owners may use to boost sales, promote new items, create excitement about a new business venture, improve brand awareness, and much more. And, while there are lots of free advertising and marketing tactics that companies can use, for example, social media marketing, many approaches cost money, and as a result, your business should be monitoring them and their effectiveness.
1 way you can monitor a marketing campaign’s effectiveness is by calculating your marketing ROI, or return on investment. Finding your restaurant’s marketing ROI makes sure that you’re using your advertising budget appropriately and can help you determine which practices were effective and what needs to be changed later on.
What Is Marketing ROI?
You are able to calculate the ROI for a specific effort, such as a campaign promoting a new menu item or to your restaurant’s overall marketing campaigns.
Why Should You Calculate Your Marketing ROI?
There are many benefits to calculating your marketing ROI, but here are a few major factors.
Marketing ROI helps justify your promotion budget.
Analyzing your ROI will be able to help you optimize your advertising efforts further down the street.
Additionally, if you’re using social media as a piece of your marketing plan, you are able to compare your progress and potency to that of your competitors.
How Do You Calculate Marketing ROI?
There are several unique ways in which it is possible to calculate your marketing ROI. Here is how you can find your MROI in four easy steps.
First, find your restaurant’s sales increase during the time that you’re running your advertising campaign.
Calculate the entire marketing and advertising investment you made. This may include things like advertising purchases in the local newspaper, purchasing an external signal, employing an advertising agency, or perhaps paying among your employees to manage your social networking pages.
Subtract the entire marketing and advertising investment from your earnings expansion.
Divide that amount by the total marketing investment to locate your marketing ROI.
What’s a Great Marketing ROI?
If you are taking a look at your ROI for a percentage, then 200 percent might indicate you broke and anything above that will be a success. While anything over 200% is great, you need to aim to get at least a 500% MROI or above.
But, marketing campaigns can benefit your company in a way that doesn’t always result in a direct increase in sales and, as a result, is harder to track. Here are 3 examples of the benefits of marketing campaigns that are difficult to log on your MROI.
Your internet marketing campaign could boost visitors to your restaurant website and improve your brand awareness.
A coupon marketing campaign could encourage one-time customers to become repeat visitors.
If you’re using social media marketing, you might observe a rise in your follower count or likes in your articles.
Adjusting Your Marketing Tactics According to Your Marketing ROI
Once you’ve calculated your restaurant’s advertising ROI, then there are a lot of ways that you can use that data to gauge the effectiveness of your advertising campaign. This will allow you to decide if you would like to conduct another advertising campaign, change your strategies, or concentrate on one especially effective strategy.
If you find you have a very low marketing ROI, you might also want to consider scaling down and lowering your promotion expenses, at least until it’s possible to locate a more effective strategy.
Locating your advertising ROI is a great way to gauge the effectiveness of your restaurant marketing, but it is important to remember that advertising doesn’t only impact your company’s bottom line. So, be sure to check your website’s analytics, your social media after, and other important metrics before radically changing your advertising strategy.