In the rapidly growing world of e-commerce, optimised marketing has become essential for all players. “What is my cost per conversion?”, “Can I attract more customers with the same marketing budget?” etc. Questions like these keep turning inside the business owners and marketing managers. Today we are going to focus on a key marketing KPI – Marketing Return on Investment (MROI) and how you can improve it through competitive intelligence tools.
MROI is basically how much “Return” you generate based on your marketing investment or marketing spending. The definition of “Return” and MROI may vary hence we are going to use below method to calculate MROI:
So the overall goal is to make more gross profit using your marketing budget. Having competitive intelligence tools will make it easier for you to have more effective marketing campaigns. Here are 5 key areas where you can benefit from gaining competitive insights:
If you know which keywords both organic and inorganic your competitors are visible or not, you can create your Adwords campaigns and manage SEO in a more targeted way. Avoiding high cost keywords for low-margin product or focusing on keywords with low competition for high margin products can change your MROI drastically. If your competitor has not focused on keywords of a certain group of products yet, then be the first mover. Tools such as Positionly or SEM Rush can help you a lot about decisions on SEO and SEM efforts, while providing competitive insights.
Social Media Activity:
Social media is active 24/7. Your customers interact not only with you but also with your competitors and express themselves continuously. It allows the companies to reach customers and customers reach to companies. What your competitors are doing or not doing on social media can make a big difference for your social media campaigns. What if you reach an angry customer of your competitor and offer your service? E.g. Someone is complaining because your competitor does not reimburse for a returned product, while you can advertise your free return policy. Achieving great returns without too much marketing investment may be possible with the right message and the right audience who will echo your message. Tools such as Mention help you to reach customers that are talking about your brand and competitor’s brand easily.
More traffic means more conversions, which results in more sales. Yet, how is your competitor gaining more traffic than you, although you have a multi-channel marketing approach? How do they source so much organic traffic? Every company may have a different traffic split, but if there is flow-source you have to be part of it. Maybe your competitor is gaining traffic via its Youtube channel, which you did not pay attention yet. Similarweb and Alexa can help you see the traffic sources of your competitors. As a result you can see, where you can focus efforts.
A very fragmented advertising area with different publisher networks, various inventory pools and many advertisers… It is one really big question mark in the head of advertiser whether the display ads are optimized or not. If you had competitive intelligence on display ads, then you can make more data-driven decisions. Finding the right audience for your product and bringing them to your site via display ads can be easier if you have know benchmarks from your industry.
Adclarity brings you the competitive insights regarding display ads and allows you to create more converting ads, driving your MROI higher.
Pricing & Assortment
Even if you have the best marketing keywords or displays, without the right product and the right price, you will not be able to create enough sales boosting your MROI. As comparing a product’s price with another competitor is only one-click away from your customer, it is crucial that your prices are in-line with the competition. Price it too high, no sales – price it too low, lost profits. Sometimes, marketing managers try to optimize keywords without knowing if the price of the products is competitive or not. This may cause a non-converting traffic to your product, where customers see your ads but end-up buying your competitor’s product. Prisync helps you to track the products and product prices of competitors with a simple and beautiful online tool. You can adjust your prices based on the competition and increase your conversions. There is a “free account” mode of Prisync, which allows a certain number products to be tracked. Such competitor price tracking tools are essential for your sales and MROI.
Note: I am Burc Tanir, the CEO and the co-founder of Prisync.com, the competitor price tracking software for e-commerce companies of all sizes from all around the world. As an e-commerce enthusiast, I eat and breathe e-commerce and will always love to connect with e-commerce enthusiasts on anything about e-commerce. Feel free to drop me a note at firstname.lastname@example.org.