Being a contractor, you are known for being an expert at planning and building houses and infrastructures – but what about building results-driving online marketing campaigns? How do you know if the time and money you are investing in your marketing are paying off?
The answer for this is to look closer at your ROI, your company’s Return on Investment. ROI is fundamentally the measure of how much money you get/earn for every portion you invest. It is your goal to make your ROI positive. Hence, in other words, you want to earn more and more money than you spend. Ideally, your goal is to have it as higher as possible.
But the question is, how do you precisely measure your construction marketing ROI? And if it is not as higher as you’d expect it to be, how do you effectively improve it? We will answer both of these questions below. Discover and read on to learn more.
In Measuring Your Construction ROI
To know how much your marketing is profiting you, you should first figure out how to calculate your ROI correctly. While you might think that calculating your construction ROI is as super simple as plowing numbers into a formula – that is not entirely true.
Is there a formula you can use for your construction marketing ROI? Well, the answer is either yes or no. You can typically express contractor ROI in terms of a simple formula. For instance, here is a basic formula you may use for calculating your ROI:
((total earned – initial investment)/initial investment) x 100
Simply input the overall amount you have earned from a specific campaign, including the amount you have invested in. And then, work towards the formula. The resulting number will then be your ROI as a percentage. Moreover, it would help if you also considered the following sorts of questions:
- What qualifies as part of your earnings and investments?
- In a paid marketing campaign, do you only consider counting how much you spend on the ads?
- Do you also include the salary you have paid over that time?
- What about other subscriptions? Are all that included?
At the end of the day, what you will include in your ROI calculations is only up to you. You will have to set some parameters for which marketing campaigns to utilize, which time periods to always look at, and which of those costs to include in your calculations? Once you have already determined how you exactly want to calculate it, ROI becomes relatively simple to figure out. From there, you can begin assessing just how well your marketing campaigns are performing.
In Improving Your Construction ROI
Now that we have already covered how to measure your ROI, we then arrive at the certain question of how to improve your construction ROI. What can you exactly do to bring that percentage up to a much higher number? Luckily, there are various ways to give your contractor ROI a boost, and we will cover and discuss several of them below.
Here are some of the best tips for increasing your ROI:
1. Closely monitor your paid ad campaigns
Monitoring your campaigns is one of the simplest ways to keep your construction ROI moving forward, specifically your paid advertising campaigns. To do this moderately and regularly – in Google Ads, for example, make sure to view metrics like conversion rate and CTR (click-through rate).
Keep advertising all metrics that allow you to look at how well your ads are performing. When you see an advertisement attracting many clicks yet driving no conversions, your landing page probably needs to be more optimized.
As you do some reworks on your underperforming ads, promoting your high-performing ones, our entire marketing campaigns will grow more and more efficiently, drastically increasing your Return on Investment.
2. Harness Social Media and Construction Website
Another better way to improve your ROI is to take advantage of social media. A study shows that an average user spends 29% of their Internet time on social media platforms. Creating social media accounts for your company is ultimately free. So, you have a lot of reasons to start your marketing journey on these platforms.
Assess also the current state of your company’s online presence. One of the easiest ways to do this is by doing a bit of data processing. Data Analytics can measure your online presence and determine which aspects of your business are potentially more profitable. Online programs like Google Analytics can measure and report the following aspects of your business:
- Individual page sites
- Total site visits for a particular period
- Where visitors come from (geographically)
- How your website visitors came to your page and what links they used to get directly to you
Moreover, to trust the data, ensure to perform Google Analytics Audit. And for data to be actionable, make sure to have it all accurate so that things are to be tracked correctly.
3. Focus on User Search Intent
When it comes to your online marketing, mainly thru Google, user search intent is crucial. People can only click on a particular ad if it offers them something they want. For instance, if somebody searches for “home construction services”, and finds an ad for office construction, they would not click on it.
To gain more clicks and drive conversions, all your marketing materials have to give users exactly what they want. For instance, you can look at current search results to see what blog content ranks the highest. Then, you can model your ads right after that.
4. Invest in Local SEO
Local SEO offers you a competitive edge and advantage in terms of building your brand online. If you are searching for more organic and targeted traffic, then investment in SEO is one great option you must consider. About 50% of web traffic typically comes from organic searches, with only five percent coming from all different social media platforms. Therefore, investment in SEO will be a profitable investment for your construction company.
Your prospects are consistently searching online for the best construction firm that can handle their projects. Hence, it is essential to optimize your construction website’s content to become search-engine friendly. Ensure to spend a bit of time doing keyword research and get some top-level info quickly so that it is easier to create a full-fledged strategy.
5. Experiment with your marketing
Something you must do with your marketing efforts is to explore and experiment as much as possible. The ads you are running now may be effective. However, if you settle for them and never try anything new, you will never have any chance to do better.
Moreover, when running your tried-and-true marketing campaigns, always have new ads running at the same time. Doing so will help you discover something that works much better compared to what you already have. To aid this, you can perform A/B tests. The tests help you determine which of the two versions of an ad serves much better.
The results of your explorations tell you what you can do to better your marketing campaigns, making it easier for you to drive more conversions and obtain more ROI.
6. Change your Pricing Structure
If you want to increase your ROI quickly, the most up-front solution is to change your pricing plan. The math is very simple – change more, make more. Always just remember that raising your current prices may affect the number of leads you will get in the long run.
Hence, it is always better to perform this type of change slowly and carefully over time. If you need some advice about how much you should charge, you can get some advice from other construction professionals within your field.
7. Ignore Vanity Metrics
The last construction ROI tip is to ignore vanity metrics. Speaking of vanity metrics, these are metrics that may look good or make your construction company look popular, yet there is no revenue. Such metrics are the most common issue on social media. They take the form of things such as follower count and the number of likes on a specific post. For instance, if you currently have 3000 followers and earn 600 likes on every post, you start thinking it is excellent. However, these things are not causing you to earn more money.
That is why it is highly suggested to pay more attention to the metrics that matter, like your conversion rate. Conversions can instantly earn you revenue.
Let ConstructionMarketing.io give your ROI a Boost
Are you ready to give your Construction ROI a much-needed boost? ConstructionMarketing.io can help! We are a full-service digital marketing agency any clients can fully trust in driving more results. We know how to improve your construction ROI further, and we love to show you firsthand.
With our various digital marketing services, you will get help optimizing a range of your marketing strategies, from social media to SEO. We have a strong background in construction and is specialized in driving more sales and revenue only for your business.