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Is A SMART Goal of 300% ROI a SMART choice?

digital Marketing Target
We ask new clients one simple question, "What is the #1 Goal for your marketing system?"....

We ask new clients one simple question:

“What is the #1 Goal for your marketing system?”

If they have a marketing system in operation, their answer is likely to reference their current system’s performance. For example, a good answer could be:

“To increase leads by 25% within 12 months, without increasing the current marketing spend.”

However, what if you don’t currently have a marketing system and your current marketing budget is, therefore, $0?

Is 3x ROI a Realistic Starting Point for a ‘New’ Marketing System?

Banks are currently offering around 2% interest rates on a 12-month deposit.

Therefore, is it realistic to expect a 300% annual return on an investment you make in a marketing system?

Our answer to this question is a resounding ‘YES‘!

However, our answer of “YES” is conditional. Before outlining the conditions let’s remind ourselves of the meaning of a SMART goal. ‘SMART’ is an acronym with letters standing for:

  • S = Specific
  • M = Measurable
  • A = Achievable
  • R = Relevant
  • T = Time-Bound

With this in mind, the question becomes “Is a 3x ROI in 12 months an achievable goal for a brand new marketing system?” The ‘YES’ answer is dependent on the answers to the following 2 questions:

  1. What is your ‘Statement Of Value’ and is it meaningful?
  2. Is your current sales process working well?
  3. How do you define your ‘investment’?

What is your company’s Statement Of Value’ and is it meaningful?

A Statement Of Value is one of the first things we work on with a new client. Put simply, a Statement Of Value communicates exactly how they are able to add meaningful value to their customers.

If this can be clearly articulated, you’ll be able to use a digital marketing system to generate leads.

Is Your Sales Process Working Well?

When working with a new client on a tight budget we will usually implement a marketing system in 2 stages:

  1. Stage 1 – Lead Generation
  2. Stage 2 – Lead To Customer Conversion

Since Stage 2 is implemented some months after Stage 1, it is important that our client is able to manually convert leads into customers.

This will ensure that we see a 3x ROI from Day 1 – even before Stage 2 is implemented.

When Can I Start Getting Excited?

Digital marketing systems are scalable.

For example, a $3,333 per month investment would deliver $120,000 of annual revenue ($10,000 per month) with a 3x ROI.

Similarly, a $10,000 monthly investment would yield an annual return of $360,000.

This is why digital marketing is very popular with small businesses. You’re able to start with a relatively small marketing budget, prove the marketing system, and then scale up.