Understanding Marketing ROI

Video Transcription

Hi, I'm Tyler Hurst, the Director of Sales and Marketing here at LiveRez.com. And I want to welcome you to this week's edition of Whiteboard Wednesday. Now today I actually want to talk about something that I actually have a lot of passion for and something that I love, and that's marketing. But what I ultimately want to talk about today is not only just marketing, but how do I get the best out of my marketing? And that is ROI. When I think about ROI, I think about not only investing dollars, but where am I investing my time?

And so, I want to talk about a very simple equation that helps us to manage our ROI. Which is, for every dollar I spend, what do I get in return? If I put in a dollar, do I get $5? Do I get $10? And that's something that you have to think about. Every business should take the time to try and understand what they're sources are of their income, and what got them there, how much did it cost to get each one of those sources? Now it's a very simple equation, but you have to take some time to consider that if this one works really well, then you ought to pay attention to it. Now there's two reasons why, I think about two major goals especially as a vacation rental manager, what are your goals? Number one, it's getting more traffic to your website, and ultimately, converting your traffic that you get.

Now we did some research and what we found in a very, very general level of digital marketing, not specific to this industry, but we found some stats that showed us what some of those top ROI converters were. Email marketing, web, SEO and Blog, Adwords, and then Facebook. Some of them not as successful one's but still give some conversion were like LinkedIn and Twitter. So you have to ask yourself, why is email marketing one of the top lead channels for returning a great investment? You put in a dollar, you get $30, or $40 back, why? Well, ultimately if you think about it, email is fairly inexpensive or free, but if you get one or two bookings, it could totally pay for that campaign, and maybe many more in the future.

Well when you think about ROI altogether, you have to make sure that you generally follow one rule that I really like to follow, and that is spend your money on mediums that work. If you find something that works, keep doing it, do more of it. It really comes down to paying attention to what your business is doing and what works for your business. You have to pay attention to the mediums that have worked for your business, and make sure that those channels are appropriate for what you're looking to spend you're money on. Ultimately I think that if you guys will take the time to look at your sources and continue to invest in those sources, you'll ultimately reach these goals of more traffic, and more conversion. That's this week's Whiteboard Wednesday and I look forward to seeing you next week. I'm Tyler Hurst, have a great week.