Hey there, marketers and business owners! Today, we're diving headfirst into the world of calculating Marketing ROI, aka. Return on Marketing Investment. Get ready with us to uncover the ins and outs of this essential metric. But don't worry, we're keeping it light and informative for you. So grab your coffee and let's embark on this ROI adventure together!

What is Marketing ROI

Alright, let's start with the basics. Marketing ROI or ROMI, standing for Return on Marketing investment, is a metric that measures the return you get on your marketing investment. 

According to Wikipedia: “Return on marketing investment is the contribution to profit attributable to marketing (net of marketing spending), divided by the marketing 'invested' or risked.” 

Simply, it tells you how much sales you're getting for your marketing buck. It's like a superpower that helps you measure which spending on marketing contributes to profits.

Why you need to calculate Marketing ROI

Now, let's get serious for a moment. Why should you bother calculating Marketing ROI? 

Well, my friend, it's all about making informed decisions and maximizing your marketing efforts. I bet you don’t do all those marketing tricks just for fun. We all need the results. 

By measuring your ROI, you can identify which campaigns are hitting home runs and which ones might need extra effort. It's like having a secret weapon that guides your marketing strategy and helps you allocate your resources wisely. 

What you need to calculate Marketing ROI

Now that we know what Marketing ROI is, let's explore what factors contribute to this magical number. We'll dive into key components like revenue generated, customer acquisition costs, and even the intangible benefits of customer loyalty. 

Based on the above, we provide you a simple formula that you can fill in your business information. 

Note: This is the simple formula, you can add in more factors that have an impact on your number.

• Revenue: The total revenue generated from your e-commerce business includes the sales revenue from your online store, including product purchases, subscriptions, or any other revenue-generating activities.
• Cost of Goods Sold (COGS): COGS includes the expenses directly associated with producing or acquiring the products you sell, such as manufacturing costs, wholesale purchase costs, or drop shipping fees.
• Additional fees: Apart from COGS, these are other relevant expenses specific to your e-commerce business, such as shipping costs, packaging materials, website maintenance fees, payment gateway fees, and customer service costs.
• Marketing Cost: This includes expenses for digital advertising campaigns, social media marketing, email marketing software, SEO efforts, content creation, influencer partnerships, and any other marketing-related expenditures.

How to calculate Marketing ROI

Here comes the main character! I bring you the ROI calculator - a handy tool that will make your life much easier. Trust me, it's as satisfying as finding the perfect GIF to express your emotions.

Note: Set a time frame for gathering data. For example, you can calculate ROI in Q1 2023.

What’s a good Marketing ROI?

Ah, the million-dollar question (pun intended): What's considered a good Marketing ROI? Well, the answer can vary depending on factors like your industry, business model, and marketing goals. But fear not, we'll explore some benchmarks and industry standards to give you a general idea. After all, every business is as unique as a snowflake (but hopefully without the melting part).

Source: https://firstpagesage.com/seo-blog/digital-marketing-roi-statistics/

Conclusion

Congratulations, my guys! You've successfully navigated the world of calculating Marketing ROI. We've covered the basics, explored the factors, discussed benchmarking, and highlighted the importance of ROI.

Remember, ROI calculation isn't just about the numbers; it's about optimizing your strategies and ultimately achieving your business goals. So, grab that calculator and let the magic unfold. 

P.S. If you need extra guidance or want to share your ROI triumphs, we’re all ears here. Let's keep the conversation going and support each other on this ROI adventure. Cheers!  

In the previous part, we gave a shout-out to the savvy retailers who really know how to handle the Black Friday rush. But what if you're feeling a bit more adventurous? What if you're curious about trying something totally new and surprising? Well, my friend, you're in luck because this blog is just what you need. Get ready to hear some fascinating stories about people who have taken a completely different approach to Black Friday. Let's dive in and learn! 

Bucking the Trend: Working Year-Round, Relaxing on Black Friday

As a store owner, what are we likely to do when it comes to Black Friday? Reduce the cost to the minimum. But what did these stores do? They increased the prices! Weird, right? With the purpose of protecting the environment, they enter the “anti-sale” team. While it sounds like they are throwing away the chances to boost revenue, it actually has certain benefits. Besides learning their creative strategies, you'll also find out about the tools these top Shopify stores use to work smarter all around the year. 

Apparel & Accessories:

1. Hiut Denim:

Hiut Denim, the brand that proves a small Welsh town can make a big impact in the world of denim. With a stellar reputation among store owners, Hiut Denim is known for their stylish, durable jeans that are as comfortable as they are cool. Thus, Hiut Denim employs an intelligent and valuable email marketing strategy that is worth studying.

Klaviyo: Email & SMS Marketing: Basic but not bland!

Klaviyo is a marketing sidekick for Hiut Denim. It specializes in personalized Email and SMS Marketing, assisting businesses in building customer connections and driving brand success. However, Email Marketing seems to be the preference of any business owners. 

Why blend emails and SMS?  With 73% of sales are made on mobile devices, it is crucial to take care of all the marketing channels that create the most satisfied experience for the customers.

With SMS Marketing, a channel that holds the power of 98% open rates and 45% response rate, it makes sure that no one misses out on Hiut Denim bewitching Black Friday offers. And yours, too! Find out more information about the benefits of SMS Marketing during Black Friday season here.

Alternative choices: SMSGem, Omnisend, Privy, SMSBump

3.2. Allbirds: 

Allbirds, founded in 2014, is a trendy eco-friendly shoe brand known for its comfy Wool Runner. They use sustainable materials like merino wool and eucalyptus fibers, and their packaging is mostly recycled. Maybe for that reason, they also go against the Black Friday sale to prevent climate change. How to go from a small start-up to a billion dollar sneaker brand? Analysis is your secret weapon.

Lucky Orange: Squeezing Success Through Smart Analysis!

Lucky Orange is the ultimate website optimization app that unlocks the secrets of user behavior. With visual analytics, Lucky Orange unveils what customers truly desire – purchases, cart additions, and checkout secrets. Heatmaps reveal the enchanted spots, while Conversion Funnels uncover where the path stumbles. Identify areas for improvement, optimize your site's performance, and ensure a seamless shopping experience that keeps customers glued to their screens.

When it comes to rocking your campaigns, analysis is an absolute must-have. Those graphs give you a quick peek into shopper visits, offer valuable insights, and help you understand customer behavior. Plus, those numbers become a goldmine for future comparison and improvement. So, let's treat them like the precious resource they are and make our upcoming years even more fabulous!

Alternative choices: Retter, Hotjar 

Make the success yours… starting today!

In the wild world of Black Friday success, these top Shopify stores have cracked the code with their secret weapon apps. From personalized marketing sorcery to fraud-fighting ninjas and loyalty program wizards, they've got it all!

But hey, hold your shopping carts! Want to unlock the mysteries behind other product categories too? Stay updated with our blog and get ready for a wild ride of exclusive insights, jaw-dropping tips, and mind-blowing app recommendations. Don't be left in the dark while others conquer Black Friday like retail superheroes. 

Alright, folks, it's that time of the year again - Black Friday is here! It's like the Olympics of shopping, and everyone's excited about it. But wait, how do we ensure this Black Friday is a super-duper hit? Let's take a shortcut to success by learning from the pros! There are some awesome Shopify stores out there that have made jaw-dropping sales records. We're talking mind-blowing numbers! How did they do it? What applications do they use to ace their journey?

In this blog, we’ll dive into the stories of the top Shopify stores who have already assert their positions in the market. They've already claimed their thrones in the market, and we're going to unravel their secrets.

Let’s take a look back in 2023

In 2023, we saw a remarkable surge in sales over the Black Friday Cyber Monday weekend compared to 2022. The numbers soared from $6.3 billion to $7.5 billion, marking a substantial 19% increase in sales. What's more, this upward trend is projected to persist into 2024. It is important to note these upcoming trends of Black Friday, and get ready for the most anticipated in the year! 

Likewise in 2023, the top three product categories were led by Apparel & Accessories, followed by Health & Beauty, and Home & Garden.

Unravel the successful Shopify stores Secret Recipe

Category 1: Health & Beauty

1. Kyliecosmetics

Kyliecosmetics is a highly popular beauty brand founded by American entrepreneur and reality television star, Kylie Jenner. Launched in 2016, the brand gained instant recognition for its range of lip kits that featured high-quality matte liquid lipsticks and matching lip liners. Since then, Kyliecosmetics has expanded its product line to include a wide variety of makeup products loved by beauty enthusiasts worldwide. The application which supports them to gain popularity is Automizely.

Automizely Email Marketing, SMS: Igniting Sales with Dynamic Messaging!

Let's talk about Kylie Cosmetics and their secret weapon in the wild world of online sales. They've got this nifty little sidekick called Automizely, and boy, does it know how to make things happen! Automizely packs a punch with personalized emails, cart recovery that make it a suitable tool for Black Friday frenzy tactics. 

Alternatives: Postscript SMS Marketing, Mailchimp: Email Marketing, SMSGem  

2. Colourpop

A well-known name for every beauty lover - Colourpop! It is a popular beauty brand known for its affordable and quality makeup products. Colourpop has gained a cult following for their innovative formulas and trendy color selections, making them a go-to choice for makeup enthusiasts. What makes them so successful in the beauty industry? Let’s “scrutinize” their assistants.

2.1. Signifyd: Defend against fraud, protect your happiness

As a Shopify store owner, it's a thrill to see lots of orders pouring in, especially during the exciting Black Friday sale. But unfortunately, scammers are always on the lookout for an opportunity to strike. If we let our guard down for just a moment, we may come face-to-face with a bunch of chargebacks. Chargebacks happen when customers dispute a transaction and ask their bank for a refund, claiming that their credit card was used without their permission. It's not only a big loss in revenue, but dealing with this situation is far from enjoyable.

Aware of this situation, Colourpop uses Signifyd‑Chargeback Protection as a solution. The advanced fraud detection technology of Signifyd prevented fraudulent transactions in real-time, ensuring that only legitimate customers were placing orders. Instead of wasting time and energy on chargeback disputes, you could focus on providing excellent customer service and growing her business without worrying about the financial implications of fraudulent activity.

Alternative choice: NoFraud Fraud Protection, Chargeflow Dispute Chargebacks

2.2. Klevu - AI search & filter: Search less, search better

Imagine this scenario: As a Shopify store owner and a buyer, you visit a clothing store to purchase the trending Sweater Dresses for the upcoming autumn. After spending a considerable time exploring the website, you're unable to locate any of these dresses. Even after using the search feature, all you get are irrelevant or incomplete results. What's your next move? Most likely, you'll consider shopping elsewhere for a more satisfying experience.

Solving this problem is as easy as a click of install when you have the tool - Klevu. Not only efficiently increase on-site search revenue, it helps the customers get personalized product recommendations with the aid of AI (Artificial intelligence). Which helps to make Colourpop a “paradise” of shopping experience for any visitor.

Alternative choice: Boost AI Search & Discovery, SoBooster, Rapid AI Search Bar & Filters

Category 2: Home & Decor

2.1. Confetti Interiors

Confetti Interiors is a vibrant and contemporary home decor store that caters to individuals seeking unique and stylish furnishings. With its impeccable attention to detail and eclectic collection, Confetti Interiors offers a range of products, including statement furniture pieces, decorative accessories, and modern artwork. Having a loyal customer base is crucial for any business's success.

Yotpo: Loyalty & Rewards: The shortest path to customer loyalty

Crafting loyalty is not an easy task, and Yotpo Loyalty & Rewards is the buddy for Confetti Interiors in this field. It’s more than just rewards; it’s the glue that keeps customers coming back. This agile loyalty platform gives you the power to create, evolve, and understand loyalty, all without a single line of code.

Black Friday is more than just one day. Providing Early access, exclusive loyalty offers, limited-time rewards, etc. are the tactics used by Confetti Interiors to create a successful BFCM season. 

Alternatives: Smile: Loyalty & Rewards, Rise.ai, LoyaltyLion

Going against the norm… Why not?

Sales, sales everywhere - 50% off, 70% off, buy one get one free, and the list goes on! It's a common practice to lower prices in order to boost sales. We try to cut down our profit as much as possible! But, here's a thought: could there be a different approach that yields great results? 

In Part 2 of this discussion, we're going to delve into the distinctive strategies employed by other successful businesses. We'll explore these strategies in detail to help you elevate your own business. Let's get started on this insightful journey! 

18 billion dollars! It’s the amount of money eCommerce brands lose every year because of Abandoned carts!

That’s right - billions of dollars in potential revenue lost, just simply because customers abandon their carts before completing their purchase. How to turn loss to opportunity? Well, SMS Marketing can do that for you!

Let’s find out how to integrate SMS Marketing into your abandoned cart recovery campaigns in this blog. SIMPLE SETUP, INSTANT BENEFITS.

What is an Abandoned cart?

Once upon an e-commerce realm, there were mischievous “Abandoned carts”. Customers would excitedly fill their online shopping carts but leave them stranded without buying. Abandoned carts can be a challenge for online retailers as they represent lost sales and revenue. However, with the right strategies, retailers can win back those customers and their precious sales.

What is Abandoned cart SMS

Like a friendly nudge, Abandoned cart SMS is a message sent to customers who left items in their online shopping cart without completing the purchase. To recover abandoned carts, SMS Marketing is an effective way for online retailers to remind customers about items they left in their cart and encourage them to complete their purchase. 

While there are many methods to recover your abandoned carts, such as sending reminders through email, WhatsApp, or any other communication channels, SMS marketing has proven its power with these numbers:

SMS Marketing: Your Abandoned Cart Recovery Hero!

Why can I say that certainly? Let the numbers do the talking.

• High Open Rate & Response Rate

With 98% open rate and 45% Open Rate, it means that customers are much more likely to see your abandoned cart recovery messages and take the action needed.

• High Conversion Rate

Studies show that SMS conversion rates can be as high as 45%. That means customers are more likely to complete their purchase when they receive the message. 

• Cost-Effectiveness

Without breaking the bank, SMS Marketing could be a highly budget-friendly solution. As it typically costs less than other marketing channels like email or paid advertising.

Get Started with Abandoned Cart SMS

In Shopify, the only method offered for recovering abandoned carts is through email. So, to start using SMS with the purpose of recovering abandoned carts, you need a third-party application. 

Step 1: Install an application from Shopify app store

Shopify has an App library where you can find hundreds of applications to connect your Shopify store. To use SMS Marketing for your store, Just head to the Shopify app store and select an SMS Marketing app that fits your needs. Some top contenders include SMSBump, SMSGem, Klaviyo, and Automizely SMS Marketing.

You can learn more about the pricing plans of each platform by checking this blog.

Step 2: Customize your SMS message templates. 

When creating a campaign, you can craft witty and attention-grabbing messages that will encourage customers to complete their purchase. The customer’s name, abandoned items, and the link for them to come back to their cart should be included in the messages. 

Tips: Insert a sense of urgency in your messages: limited stock, time-sensitive deal, etc.

The SMS Marketing platform like SMSGem already has a library of templates for you to choose from, which can save your time and effort.

Step 3: Set up automated SMS reminders.

Think of scheduling automatic SMS reminders like setting a personal alarm clock for your customers. 

You can choose when to send the reminders after cart abandonment, like 10 minutes or 12 hours later. Just like a good wingman, the reminders are there to nudge your customers and remind them about the items they left behind. But be careful not to hit ‘snooze’ too many times! It is important to bear in mind that the messages should not be sent too frequently. You don't want to bombard your customers with too many messages and risk annoying them. Once you've set up your automated SMS campaign, you're ready to go! 

Step 4: Analyze your SMS campaigns. 

Top students don't stop studying after finishing a test - they carefully review their answers and identify areas for improvement. The same goes for SMS marketing.

After launching an SMS campaign, it's important to analyze your performance data and identify areas for improvement. By tracking metrics, you can gain insights into how your campaigns are performing and where you can make adjustments. Then, you can optimize your messaging and drive better results in future campaigns. So, what are several numbers that you should take into account?

1. Revenue
2. Conversion rate
3. Click-through rate
4. Unsubscribe rate
5. Cart remaining today

The bottom line

In conclusion, abandoned carts can be a significant problem for eCommerce brands, but SMS Marketing can be a powerful solution for recovering lost sales and revenue. With high open and response rates, SMS Marketing allows you to reach customers where they're most likely to see your message - on their phones.

By following the steps outlined in this blog - installing a third-party SMS Marketing app, customizing your message templates, setting up automated SMS reminders, and analyzing your campaign data - you can launch effective abandoned cart recovery campaigns and drive success for your business.

So, don't let abandoned carts be a roadblock to your eCommerce success. Try SMS Marketing and turn those lost sales into opportunities for growth!

Your phone beeps, and you're excited to check your new message. But, no personalized, relevant SMS from your favorite brand. Instead, you're greeted by yet another generic, irrelevant, annoying SMS marketing message. Sound familiar? If so, you're not alone. 

SMS Marketing - is an effective tool that any business should try. Yet, you as a business owner might make common SMS Marketing mistakes. Then, all the work ends up being a waste of time and money, bonus damaging reputation! 

In this blog post, we'll show you the top SMS marketing mistakes to avoid. So you can keep your customers engaged and your brand's reputation intact. Don't let your SMS marketing efforts fall flat - read on to learn how to get it right!

If you want to have a more detailed guidance on the SMS Marketing Mistakes to avoid, follow us on social media to get the exclusive free ebook.

1. Not complying with regulations:

Rules, rules, rules. They can be a real drag, but following the rules is super important when it comes to SMS marketing. Let me tell you about Jiffy Lube. It is a leading provider of automotive preventive maintenance. They ignored the regulations. With a list of phone numbers collected from the invoices, Jiffy Lube might think: “Great! Now just send them all the attractive deals through messages!”. Sadly, without the recipient's consent, Jiffy Lube clearly violated Telephone Consumer Protection Act (TCPA). They had to pay $47 million.

Solution: Using a reputable SMS marketing service provider like SMSGem. Everything will be set up automatically. The platform provides you the templates to use whenever needed.

2. Sending irrelevant messages

Little Mike has a crush on the lovely and beautiful Lily. He wants to impress her. So he decides to find out what Lily likes and sends text messages talking about those things. Even a little boy like Mike knows that to win over the lovely Lily, he needs to pay attention to her interests. He can't talk about his favorite sports team or video game and expect her to swoon. No, he needs to talk about the things she likes - art, music, and fashion. It's the same with SMS marketing. Do not send messages about things that have nothing to do with your customers’ interests and expect them to love it. You need to send them messages that they'll actually care about. 

Solution: 

Segmenting your audience based on the collected data. You can divide them into different groups by their preferences, behaviors, demographics, and more. SMSGem enables a swift setup process for a highly personalized experience.

3. Sending too many messages

Spamming has never an effective way of doing marketing. It is costly, inefficient and a waste of time! Papa John’s was in big trouble for sending over 500,000 unwanted text messages to customers.  Some customers complained they were getting 15 or 16 texts in a row, even during the middle of the night. Could you imagine how frustrating it is? It’s far more than enough messages to make you lose your appetite! Spanish review Rhino Gold Gel here http://rhino-gold-gel.com/ES/

Solution:

The key to avoiding this mistake is to strike a balance between frequency and relevance. You want to send enough messages to keep your customers engaged and interested. But not so many that they feel overwhelmed or annoyed. 

4. Failing to personalize messages:

Let’s sit on your customer’s chair, supposing your name is Jack, a big boy who has a huge love for the most stylish shoes collection. Then you suddenly received a message saying “Hello Lisa, check out our latest collection of short skirts that are only for beautiful women like you!”. Let’s face it, if you send a message like that, your message will be ghosted faster than a bad Tinder match. 

Solution:

• Use a generic greeting
• Segment your customers

5. Not optimizing for mobile: 

Talking about SMS, we might instantly think of someone holding the phone and looking at it. That means a text message should be responsive for the phone, not your computer screen. Be aware of sending a large image that did not display properly on some mobile devices.

Solution:

• Testing on different screen resolutions before sending out
•  Avoid using large images

The bottom line

There are more than five mistakes that any marketer might have when doing SMS Marketing. However, as long as you realize these five and correct them, you are more than halfway to success. And don’t forget to check out SMSGem if you are finding an automated solution for your Marketing game. More than just SMS Marketing, it could be the buddy of your business in the long run. So go on, give it a try and watch the sales roll in! Good luck, and happy texting!