ReportWire

Tag: ROI

  • With its latest acqui-hire, OpenAI is doubling down on personalized consumer AI  | TechCrunch

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    OpenAI has acquired Roi, an AI-powered personal finance app. In keeping with a recent trend in the AI industry, only the CEO is making the jump.  

    Chief executive and co-founder Sujith Vishwajith announced the acquisition on Friday, and a source familiar with the matter told TechCrunch he is the only one of Roi’s four-person staff to join OpenAI. Terms of the deal were not disclosed. The company will wind down operations and end its service to customers on October 15. 

    The Roi deal marks the latest in a string of acqui-hires from OpenAI this year, including Context.ai, Crossing Minds, and Alex.

    While it’s not clear whether any of Roi’s technology will transfer over to OpenAI or which unit Vishwajith will join, the acquisition clearly aligns with OpenAI’s bet on personalization and life management as the next layer of AI products. Roi brings a specialized team that has already tried to solve personalization in finance at scale — a challenge whose lessons can be applied more broadly.   

    New York-based Roi was founded in 2022 and has raised $3.6 million in early-stage funding from investors like Balaji Srinivasan, Spark Capital, Gradient Ventures, and Spacecadet Ventures, according to PitchBook data. Its mission was to aggregate a user’s financial footprint, including stocks, crypto, DeFi, real-estate, and NFTs, into one app that can track funds, provide insights, and help people make trades.  

    “We started Roi 3 years ago to make investing accessible to everyone by building the most personalized financial experience,” Vishwajith wrote in a post on X. “Along the way we realized personalization isn’t just the future of finance. It’s the future of software.” 

    Beyond tracking trades, Roi gave users access to a financially savvy AI companion that responded in ways that made sense for them. When signing up, users could personalize Roi by providing information like what they do for a living and how they wanted Roi to respond to them. 

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    In one telling example that Roi posted on X, the sample user wrote: “Talk to me like I’m a Gen-Z kid with brain rot. Use as little words as possible and roast me as much as you want I don’t mind.” In response to a query about the status of the user’s portfolio, Roi replied: “Suje, you got cooked lil bro. Cause of the tariff announcements, you took an L today of $32,459.12…Based on your risk preference this might be an opportunity to buy the dip.” 

    The exchange highlights the philosophy behind Roi and its co-founder — that software shouldn’t just provide generic answers but should adapt, learn, and communicate in ways that feel personal, human, and most importantly, keep you engaged.  

    As the Roi team wrote in a blog post: “The products we use every day won’t remain static, predetermined experiences. They’ll become adaptive, deeply personal companions that understand us, learn from us, and evolve with us.” 

    That vision dovetails with OpenAI’s existing consumer efforts, including Pulse, which generates personalized news and content reports for users as they sleep; the Sora app, a TikTok competitor filled with AI-generated content, including personal cameos from users; and Instant Checkout, a feature that lets users shop and make purchases directly in ChatGPT.  

    The deal also comes as OpenAI beefs up its consumer applications team,  led by former Instacart CEO Fidji Simo. It’s a further signal that OpenAI isn’t just trying to be an API provider, but wants to build its own end-user apps. Roi’s talent and tech could slot right into these apps and help make them more adaptive.  

    Vishwajith, alongside his co-founder Chip Davis, used to work at Airbnb, where he developed a knack for optimizing user behavior to drive revenue. By his account, a simple change of 25 lines of code led to $10+ million in additional cash.  

    Being able to bring in meaningful revenue via consumer apps is more important than ever to OpenAI as it continues to burn through billions on data centers and infrastructure to power its models.  

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    Rebecca Bellan

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  • I Stopped Doing These 3 Things Myself — and It Made My Business More Profitable | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    In the early days of any business, most founders wear too many hats. You’re the product lead, marketer, customer service rep and ops manager — sometimes all in the same afternoon.

    I’ve been there. When I was launching my first AI startup, I was writing code, answering support tickets, hacking on SEO and trying to figure out Google Ads at night. Every time I jumped from one thing to another, I paid a tax: ramp-up time, mental fatigue, missed details.

    Eventually, I drew a line: if a function had a steep learning curve, wasn’t core to the product or customer experience, and could burn cash fast if I got it wrong, it had to go.

    Here are the first three things I outsourced — what worked, what didn’t and how I make the decision now.

    Related: How to Turn Big Business Moments Into Lasting Brand Momentum

    1. Google Ads had to go first

    I took a real swing at it. I set up campaigns, followed Google’s recommendations and even tried Performance Max. One day it would “work,” the next day I’d spend $90 to make a $24 sale.

    Whether you’re running a SaaS tool, an ecommerce store, or a local service business, paid ads can become a black hole. The learning curve is steep, the platform is opaque by design and Google is always nudging you to spend more so the algorithm can “learn.”

    I hired a specialist. Instantly, I stopped burning time trying to reverse engineer bidding strategies and keyword intent. I could focus on the roadmap, customers and the parts of marketing I actually understood. Worth every dollar.

    My advice: Try it briefly so you understand the vocabulary and the levers. Then get out. Your money will disappear faster than your learning compounds.

    2. Social media was next — and it blew up (in a bad way)

    I outsourced content and channel management to someone who promised to “crush it.” I gave full access to my accounts. It devolved into drama, threats and low-quality work. I shut it down.

    The lesson? Never give full control of a distribution channel to someone you don’t know, and never confuse enthusiasm with competence. Social media can be valuable for any business building in public — but only if it’s handled by someone you trust and can hold accountable.

    Next time: I’ll only outsource to someone vetted by people I trust, with scoped access, clear deliverables and a kill switch.

    3. PR was the third — and it worked

    I’d watched competitors outrank me and land strong stories. I tried the DIY route (like HARO), but the ROI wasn’t there. So I brought in someone who could own the process — strategy, pitching, follow-through — and translate my product into narratives reporters actually want.

    That freed me to focus on what I do best while the media engine ran in parallel. For businesses in crowded markets or emerging categories, this kind of PR support can be game-changing.

    How I decide what to outsource now

    I use a simple filter:

    • Is this core to the product or user experience? If yes, I keep it.
    • Is the learning curve steep enough that I’ll waste weeks for marginal improvement? If yes, I outsource.
    • Could a mistake here be disproportionately expensive? (Ads and legal are great examples.) Outsource.
    • Do I understand it well enough to evaluate the work? If not, I’ll do a quick self-guided crash course, then bring someone in.
    • Can I structure a small, low-risk test? If yes, I do that before any retainer.

    Handling the handoff while staying lean

    I started with literal paper notes, then the Mac Notes app. Today, I still keep it simple: Trello boards when needed, email for most communication, and regular short check-ins. The point is clarity, not tooling.

    One clear metric, one owner, one cadence.

    Access-wise: role-based logins, password manager and instant revocation baked into the plan. That social media experience burned this into my process.

    Related: How to Actually Get Returns in Your Marketing Efforts

    About that “it’s faster if I do it myself” line…

    It isn’t. It just feels faster because you don’t have to explain anything. In reality, you’re trading days of deep work for weeks of shallow thrash.

    Do enough to understand it. Then move it off your plate — so you can focus on what only you can do.

    You can’t do it all — not for long and not well. Start by outsourcing the work that burns cash when done poorly, has a steep learning curve, or pulls you furthest from the product or customer. Keep control of your infrastructure, build small, reversible contracts and measure everything.

    The cost of trying to be superhuman is higher than the cost of a good specialist.

    In the early days of any business, most founders wear too many hats. You’re the product lead, marketer, customer service rep and ops manager — sometimes all in the same afternoon.

    I’ve been there. When I was launching my first AI startup, I was writing code, answering support tickets, hacking on SEO and trying to figure out Google Ads at night. Every time I jumped from one thing to another, I paid a tax: ramp-up time, mental fatigue, missed details.

    Eventually, I drew a line: if a function had a steep learning curve, wasn’t core to the product or customer experience, and could burn cash fast if I got it wrong, it had to go.

    The rest of this article is locked.

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    Jeremy Gustine

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  • 5 Pervasive Myths About Email Marketing That (If Believed) Could Derail Your Business | Entrepreneur

    5 Pervasive Myths About Email Marketing That (If Believed) Could Derail Your Business | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    With new social platforms emerging every year, many entrepreneurs wonder if they should leave email behind and look ahead to new avenues. Did you know that email is still the second biggest marketing channel for startups, right behind social media? That’s right! It’s all thanks to its low cost and incredible return on investment (ROI). According to the study by Litmus, it remains one of the best ROIs out there; companies can expect to make a whopping $38 in return for every dollar they spend on email marketing.

    As the CEO of Builderall, an all-in-one digital marketing platform that has supported over 2,000,000 small businesses, I often get asked if email marketing is still an effective strategy in this new phase of our digital age. Is it dead in 2024?

    I’m here to debunk the biggest myths and set the record straight. Today, I’ll share my insider knowledge to help you see the light.

    Defining email marketing

    Before we debunk these myths, let’s make sure we’re all on the same page about what email marketing actually is. Many people have misconceptions about this form of digital marketing, which can turn them off — and that leads to missed opportunities.

    Email marketing is a direct marketing strategy that sends promotional or informational messages to a targeted audience via email. It goes far beyond blasting promotions or cold outreach. Done right, it builds meaningful relationships between your brand and subscribers. It’s a way to keep them engaged, and ultimately, it’s another way to drive sales.

    Some examples include

    • Newsletters
    • Promotional offers
    • Product updates
    • Even personalized content based on a subscriber’s interests.

    Related: 8 Simple Email Marketing Tips to Improve Your Open and Click-Through Rates

    Myth #1: Email marketing is dead

    Let’s tackle the elephant in the room first. No — email is not dead! In fact, it’s far from it and still going strong.

    According to data provided by Oberlo, 80% of businesses rely on email as their primary customer retention channel. That means they’re using email to keep their existing customers engaged and coming back for more.

    But that’s not all. HubSpot found that 60% of consumers made a purchase thanks to a marketing email they received. That’s a huge testament to the power of email marketing in driving revenue for businesses.

    Myth #2: People don’t read emails

    I can’t tell you how often I hear this myth. Sure, our inboxes have gotten pretty crowded over the years, and many of us receive dozens or even hundreds of emails daily. It’s also true that a good chunk of those emails might get sent straight to the trash or spam folder.

    However, according to HubSpot, 46% of smartphone users still prefer to hear from brands via email over other channels.

    If you establish trust and send relevant content, subscribers will welcome your emails with open arms.

    This stat also highlights the importance of putting care in your campaigns by using compelling subject lines and other email elements to stand out in a crowded inbox.

    Myth #3: Younger audiences don’t use email

    Gen Z and millennials are the next generation that will have some serious purchasing power. It’s only logical for businesses to look for new and innovative ways to approach them, as they’re often portrayed as being glued to their screens and obsessed with social media platforms.

    These stereotypes lead many people to assume Gen Z and millennials are too obsessed with TikTok and Instagram for old-school strategies like email. Let me prove them wrong again. According to the Attest U.S. Consumer Trend Report, 53% of Gen-Z enjoy weekly emails from their favorite brands. For millennials, it’s 66%.

    Of course, you’ll want to cater your approach to each audience (throw in some slang or a meme here and there,) but don’t count email out. These generation segments still use and prefer it.

    Myth #4: Email has low open rates

    The next myth I wanted to touch on is more tangible. Some say email performs poorly compared to social media platforms like Facebook or Instagram. For that, we’ll have to look at the open rate.

    Open rate is an essential key performance indicator (KPI) in digital marketing because it tells you how many people are actually opening and reading your emails. MailChimp benchmarks tell us the average email open rate across all industries is 34.23%. While that might not sound amazing, it’s definitely not bad either.

    With optimization, that number can grow much higher and bring benefits. As reported earlier, that’s why so many businesses still rely on email as their primary customer retention channel.

    Related: This One Thing Is the Secret to Higher Email Open Rates

    Myth #5: Email marketing equals spam

    Finally, allow me to go full circle and return to the definition of email marketing. Too many people confuse general email marketing with a somewhat shady practice: cold outreach.

    Cold emails are unsolicited messages sent to people who have not expressed interest in your brand or products. You essentially buy or scrape a list of email addresses (unbeknownst to the recipients) and blast bulk emails, hoping to catch a few leads. They’re often used for prospecting and can come across as intrusive if not done right. That’s because nobody gave you permission to contact them.

    On the other hand, email marketing is about building relationships with people who have already shown interest in what you offer. They might have signed up for your newsletter through a lead magnet or opted in to receive your updates. That’s a big difference!

    It is this latter form of communication that 81% of businesses use email as their primary customer acquisition channel. It drives results without spam tactics.

    Final thoughts

    While many entrepreneurs may feel attracted to the latest shiny object or technology, these myths cause many entrepreneurs to overlook email in 2024.

    When executed correctly, email marketing remains an indispensable growth lever for startups and established businesses alike. Now that you know the truth, utilize email marketing to boost conversions and retention. With a strategic approach, you may see even higher open rates and ROI than the studies show.

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    Pedro Sostre

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  • How to Determine The Ideal Length of Your Marketing Emails Your Customers Will Actually Read | Entrepreneur

    How to Determine The Ideal Length of Your Marketing Emails Your Customers Will Actually Read | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Email marketing is booming: last year, 52% of marketers said their campaign’s return on investment (ROI) doubled, while 5.7% of marketers experienced an ROI four times larger compared to 2022, a Statista report shows.

    How can you create similar results for your business this year?

    The effectiveness of email marketing comes down to a few key factors:

    • Knowing your audience and its pain points and desires.
    • Creating emails that respond to those specific needs.
    • Getting your emails in the inbox, where your subscribers can interact with them.

    As the CEO of a B2B email marketing company, I often hear from customers about their top challenges. A big one? Creating emails that really engage and drive results. Getting the content, length and audience targeting just right is tough.

    Related: How to Get People to Open – And Read – Your Emails

    Most of your prospects prefer shorter emails

    If you’re struggling to make your emails more engaging, here’s an aspect you may be overlooking: just make them shorter. Recent data from a ZeroBounce report shows that 66% of consumers prefer short emails, and only 6% favor longer ones.

    But keep this caveat in mind: For 28% of people, email length becomes irrelevant if the content is well-tailored to their needs and interests.

    It’s no surprise that people prefer shorter marketing emails. When inboxes are clogged with messages, why would you opt for a long message instead of a quick note? Concise and direct emails respect your prospects’ time and have a higher chance of getting their attention. But while most people prefer brevity, the quality and relevance of your emails are what truly capture and retain interest.

    The message is clear for the 28% who don’t mind the length: When an email resonates well with their needs or interests, they’re willing to invest more time, regardless of word count. This segment of your audience is receptive to more in-depth content that speaks directly to their challenges.

    How to determine the right email length

    So, how do you strike the right balance between brevity and substance? The key is to start with understanding your audience. Segment your email list based on behaviors, preferences and past interactions. This segmentation allows you to tailor your messages more precisely. Also, you probably send different types of emails. That aspect alone should guide your approach:

    • Newsletters can be longer and cover several pieces of information in more depth.
    • Drip campaigns can consist of a series of emails that gently push your prospects closer to a purchase. Those emails can be short — sometimes, a few lines followed by a call-to-action (CTA) is enough.
    • Targeted campaigns, such as a discount or free offer, can have an engaging image paired with a couple of sentences and a catchy CTA button.

    If you’re still unsure whether your email is too long, here are a few tips to save you time and make things easier.

    Start with a clear goal

    Every email should have a clear purpose. Whether it’s to inform, increase engagement or drive sales, your goal will dictate the necessary length. Don’t add fluff just to extend an email; keep it as long as necessary to fulfill its purpose.

    Choose simplicity and clarity

    Use simple language and clear CTAs. Marketing emails rarely benefit from any metaphors. Your email should guide readers smoothly from the opening line to the desired action without unnecessary detours.

    Personalize to the last detail

    Use what you know about your customers to tailor your emails. When marketing emails feel personal, people care more about the message and less about the length.

    Test and adjust to what your audience likes

    Studies can point you in the right direction in terms of consumer preferences, but only you can determine what your audience responds to the most. Before sending your next email, consider A/B testing different lengths. Then, analyze your metrics to see what performed best.

    Improve your layout

    Sometimes, the way information is presented can affect how we perceive the length of an email. Breaking text with relevant images or using bullet points can make longer emails appear more digestible and engaging.

    Related: 4 Things You Can Automate in Your Email Marketing That Will Save You Time and Drive Sales

    Ask your subscribers

    Asking for opinions shows you care about serving your audience better, so why not include a poll in your next newsletter? Allow your subscribers to tell you how long they’d like your emails to be. Nothing beats direct customer feedback in helping you create more effective campaigns.

    Bonus tips to increase email engagement

    Here are a few extra tips to help your next emails get more clicks:

    • Try to keep your subject lines between 30 and 50 characters. Not only will your subscribers process them faster, but keeping your subject lines short ensures they display well on all devices.
    • Check your email list health to avoid bounces and the likelihood of landing in the spam folder.
    • Assess your spam complaint rate – it should be under 0.1% to comply with Yahoo and Google’s new email-sending rules.

    Also, remember your goal is to connect with your audience genuinely, no matter how many words it takes to get there. If your email ends up longer than you’d planned but addresses a topic many of your subscribers care about, don’t worry. Engaging content can often justify a longer read.

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    Liviu Tanase

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  • These Website Mistakes Could Be Costing You Thousands. Here’s How to Maximize Your Return and Drive More Sales. | Entrepreneur

    These Website Mistakes Could Be Costing You Thousands. Here’s How to Maximize Your Return and Drive More Sales. | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    You’re losing thousands of dollars on your website and might not even know it. You have a site and a marketing team, and traffic is flowing in. But your site — and business — may fail because you’re losing customers and conversions.

    How?

    Leads fail to convert because of poor user interface, slow speeds and bad design practices. If your site isn’t optimized for SEO, it gets even worse: leads will never land on the site in the first place.

    How much does a website cost?

    Small websites cost $500 to $5,000. Your costs will vary depending on whether you use a template, hire a developer and the complexity of the site. Sites with hundreds of pages, expert optimization and design can cost $10,000 to $20,000. Your initial investment can’t be recuperated if your site isn’t optimized properly or set up to convert leads into sales.

    Site visitors have higher expectations, and there is a growing list of requirements that sites must meet. You need a snappy site, and it must be accessible. However, you also need to capture the right data from your forms, continually optimize your site and fill in the leaks that are causing you to lose money.

    Related: 3 Powerful SEO Techniques That Will Boost Your Website’s Search Engine Ranking

    Is your website investment worth it?

    Small business owners lose customers, even with a well-functioning website, because they don’t know how to utilize the data available to them. So, after all, is your website investment worth it, and if yes, how can you make sure you get an ROI?

    Nobody tells you that web forms can cost you a lot of money

    Forms are boring input fields to failing site owners and a goldmine to successful ones. What are leads doing when they enter data into the form? Are errors causing potential customers or clients to leave the site? According to WP Forms, more than 67% of site visitors will abandon your form forever if they encounter any complications; only 20% will follow up with the company in some way. Analyzing how users interact with forms is especially critical for small businesses, which may not have as many opportunities as larger corporations. They can identify common issues such as broken forms, confusing fields or errors. This insight allows small businesses to simplify and optimize the form-filling process, improving the overall user experience and significantly increasing the chances of conversion. Thankfully, you can use a form tracking system that will help to pinpoint problems with data entry and missed opportunities, ensuring that small businesses are not carelessly losing leads.

    Testing your forms and sales funnel regularly can save you a lot of money if you fix issues that are found in the test phase.

    Data is the king of website optimization

    Analytic data is king of website optimization, but you need to know what to look for and how to make changes. For example, if you have a high bounce rate, your site may look like it was designed in 1999, or it takes 15 seconds to load.

    Bounce rate means users are leaving the site on the page of entry, and you have multiple areas of potential improvement.

    Review your site speed and follow PageSpeed Insights’ recommendations to optimize your site. Try to bring loading time down to two to three seconds at most. Complex navigation and poor-quality landing pages can also cost you sales. Work with a copywriter to optimize your sales funnel copy.

    Data will help businesses to pinpoint exactly where users engage most frequently and where they face obstacles. With careful analysis of this data, companies can optimize every aspect of their website, from navigation to content.

    Important aspects of a high-converting website

    High-converting websites have a lot in common:

    Content

    Expertly written content, with the help of a copywriter, will allow you to hit on the pain points of leads and close more sales. Hooks and storytelling from an experienced copywriter can help you turn a low-performing sales funnel into one that exceeds sales forecasts.

    Design

    Poor design practices cause sites to fail. Yahoo! is a prime example. The site was once Google’s biggest competitor, but with the bland and outdated design, the bounce rate was high, and people flocked to Google.

    Work with a design team to create a functional, feature-rich site that appeals to your target demographic.

    Lead capture forms

    High-converting sites use lead capture forms to collect basic information about visitors, such as their email or phone number.

    In exchange for providing information, leads receive something valuable in return, such as a discount or free eBook.

    Once a user provides their email address or phone number, you can start nurturing them and eventually convert them into a customer. It’s important to note again that receiving instant notifications about broken forms and issues is a solution to avoid losing potential customers.

    Related: 9 SEO Tips to Help You Rank No. 1 on Google in 2024

    Call-to-action: More than just a button

    Call-to-actions (CTAs) tell visitors what to do next, such as signing up for a newsletter, making a purchase or scheduling a consultation. They play a crucial role in improving your site’s conversion rates.

    Without them, visitors would leave your site without taking action, resulting in lost opportunities to convert leads.

    To increase conversions, CTAs must be clear and concise and use action-oriented language, like “Buy now” or “Contact us.” Tell your visitors exactly what to do next so there’s no confusion and they feel confident taking the next step.

    CTAs are highly effective at improving conversion rates, but visitor behavior can change over time. Testing and optimizing your site’s CTAs can help maximize your conversion rate and adapt and change as user behavior changes.

    Make sure that you’re engaging in A/B testing to determine which CTA works best for your audience.

    You must respond to leads right away

    Research shows that 78% of customers purchase from the first responder. Surveys also show that the highest-ranking companies in lead response audit reports respond to leads in 30 minutes or less. The quicker you respond, the better. Conversion rates can be as much as eight times higher if you respond in the first five minutes.

    Every minute that passes increases the chance that the lead will move on to a competitor.

    How can you improve your lead response time? Start by automating your lead qualification process to identify and prioritize high-quality leads. Track the lead from start to finish and pinpoint the issues that leads are facing. Set response time goals, train your reps, and streamline your lead management processes to reach out to leads as quickly as possible.

    Conclusion

    You spend thousands of dollars on a website. To maximize your return, you must ensure that your site has all the right elements to increase conversion rates. Once you have these elements in place, you must respond to leads immediately to seal the deal.

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    Ludwig Makhyan

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  • 3 Major Mistakes Companies Are Making With AI That Is Limiting Their ROI | Entrepreneur

    3 Major Mistakes Companies Are Making With AI That Is Limiting Their ROI | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    I was talking to a friend recently who serves as the CTO at a mid-sized company and was struck by his sudden change in perspective on AI. Despite initial skepticism, he now believes artificial intelligence (AI) will revolutionize his industry. Yet, his main challenge has been convincing the rest of his executive team to adopt an AI roadmap. This scenario isn’t isolated.

    In the last year, we’ve seen a contracted hype cycle around AI, which has caused many leaders to question if an investment in AI can truly yield proportional returns. These concerns aren’t without merit. VC firm Sequoia Capital recently estimated the AI industry spent $50 billion on Nvidia chips to train AI models last year, yet only yielded $3 billion in revenue.

    Despite that disparity in investment, Sequoia went on to hypothesize AI is likely “the single greatest value creation opportunity” mankind has ever known, comparing its impact on business to that of the cloud transition. Unlike the cloud, however, which replaced software, AI has the potential to replace services, which the VC firm estimated has a total addressable market in the trillions. It’s the reason tech giants like Microsoft and Amazon continue to double down on AI investment.

    Related: What Is Artificial Intelligence (AI)? Here Are Its Benefits, Uses and More

    With so many competing narratives around the future of AI, it’s no wonder companies are misaligned on the best approach for integrating it into their organizations. The problem is most leaders are still looking at AI in its limited capacity as a software or tool rather than its ability to operate in a human-like capacity. Here are three common mistakes I see companies make when it comes to implementing an AI roadmap.

    Underestimating and limiting AI’s potential

    AI is widely viewed as a tool or software, but because it can create and reason, it has the ability to interact in a human-like capacity. Much like a junior employee who gets better at their job with experience, AI has the ability to learn from its interactions and refine its methods to improve its output and take on more work overtime.

    For this reason, leaders who think of leveraging AI as “smart people” rather than software are better positioned to harness its full potential. Think about a company’s organization chart. If you were to write down the skills and tasks associated with each employee, then you can start to visualize where AI can be trained to augment or automate these tasks.

    AI already outperforms humans in areas such as image classification, visual reasoning, and even English understanding, according to Stanford University’s recently published AI Index report. As of 2023, the report showed AI has surpassed human-level performance on several benchmark tasks, succeeding in helping workers become more productive and produce better-quality work. Another study out of the University of Arkansas showed AI outperformed humans in standardized tests of creative potential.

    Unlike humans, however, AI scales up effortlessly as business demands increase, handling workloads without the physical and mental limits of humans. Adopting AI in this way means rethinking our team structures and workflows. It involves training teams to work alongside AI to enhance their roles and drive innovation.

    This perspective shift is crucial because it allows leaders, who may not be accustomed to deploying technology themselves, to innately understand how to best leverage AI across their entire organization.

    2. Trying to mimic another company’s AI use case

    The more you start thinking of AI as smart people, the more you realize how individual every organization’s approach to building an AI roadmap should be. I like to think of AI implementation as the onboarding of new team members who need to fit within the specific dynamics of your company.

    Take human resources for example — one company might have 10 people there; another only three, even if they’re the same size. This difference isn’t just about company size or revenue. It’s about how these companies have evolved.

    Each business has its own unique structure, culture and needs. In order to realize generative AI’s full potential, PwC reported, businesses must take advantage of its capacity to be customized to a company’s specific needs and avoid the use-case trap.

    Of course, general use cases for AI exist, particularly when it comes to enhancing customer service or sales. But, when you’re looking at a deeper integration of AI into a company’s operations, the approach needs to be custom-built, not copied and pasted from outside case studies.

    Related: I Tested AI Tools So You Don’t Have To. Here’s What Worked — and What Didn’t.

    3. Buying off-the-shelf products — not tailoring AI solutions to your needs

    There are some great off-the-shelf AI products like ChatGPT, Dalle, and translation tools that solve specific problems within a company. The challenge with investing in a boxed solution for AI is that many leaders fail to see how AI can enhance operations at a systemic level.

    The true power of AI lies in its ability to fundamentally transform your operations, not just perform isolated tasks. PwC’s 2024 AI predictions report states that many companies will find attractive ROI from generative AI. Still, few will succeed in achieving transformative value from it — the biggest barrier being the inability of leaders to think beyond boxed solutions and reimagine the way they work with AI.

    When building an AI roadmap, leaders must first conduct a thorough assessment of their company’s processes. This means identifying areas with redundancies, recognizing outsourced tasks that could be automated, and pinpointing where the company invests heavily in human capital. By understanding these dynamics, leaders can tailor AI solutions to their company’s needs and transform how they work.

    The more I talk to company leaders about integrating AI into their businesses, the more apparent it becomes that we leaders need to shift our perspective. When we view AI not just as a technological upgrade but as the onboarding of smart people, we’re better able to integrate it into our internal operations, enhancing performance and human ingenuity along the way.

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    Chris Stegner

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  • How to See a Higher ROI Using Content Marketing | Entrepreneur

    How to See a Higher ROI Using Content Marketing | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Updated on Dec 13, 2023. Originally published on Jan 13, 2016.

    Without fail, the question I am asked the most from marketers who are struggling to build their business case is, “How do I measure content marketing return on investment (ROI)?” We know that as consumers, we’re all consuming more information online. We are looking to get informed and we are looking to be entertained. But building the business case is often a tricky proposition. It’s important to remember that everyone inside the business creates content. And creators love their content like a mother loves her baby. Although the content may stink, we can’t call anyone’s baby ugly.

    So how do we build the business case for content marketing and answer the content marketing ROI question before we even really get started? It starts by building a strong business case that doesn’t directly attack people, their teams or their budgets.

    Related: 5 Ways to Create Content That’s Actually Helpful

    What is the ROI of content?

    Let’s start with how we answer the ROI question before first. There’s very few benchmarks. Here are a few examples that have been published on content marketing ROI.

    We recently curated these 15 case studies to prove content marketing ROI. But the way I specifically answer the question is to point out that content marketing ROI is higher than the average marketing ROI in every place I’ve looked.

    Julie Fleischer at media-agency OMD, formerly at Kraft Foods, said that content marketing ROI is four-times greater than even Kraft’s most targeted advertising. So the first way to respond to this question is to ask for the baseline: What is your company’s average marketing ROI? If you’re feeling cheeky, ask for the ROI of that logo your company put on a golfer’s hat or on the side of a building.

    Then go about addressing each of these three components of ROI.

    1. Content cost
    2. Content utilization
    3. Content performance

    Content cost

    Content marketing ROI starts with a solid understanding of content costs. How many marketers know the cost of the content produced by their firms? You need to conduct a content audit or at least a sample of the content you produce. Apply some average costs and extrapolate that to gain a real sense for the size of the problem.

    Content utilization

    How many businesses know what percent of their content even gets used? Any content that gets created but never used is 100 percent waste, so you need to not only track content production, but also usage.

    Content performance

    Content marketing ROI needs to define the business value of the outcomes it generates. Most people start by talking about page views and social shares and clicks to something. But it’s important to first tie your content performance back to the business case that got you started in the first place. How many businesses have calculated the business value of any of their marketing outcomes?

    Make marketing accountable

    I have always believed that marketing should be accountable for results. We need to hold marketing accountable for ROI overall. This means that all marketing spent should be tied to quantifiable results that the sales team and executives can understand.

    Generally, our marketing should be focused on generating and then managing demand. But sometimes, the CEO wants to extend the brand, and sometimes sales folks want to work under the cover of a nice, massive awareness blitz.

    Aside from those examples, we need to show hard results and make sure every marketing program has a sound business case or ROI.

    Related: 5 Key Strategies to Boost Your Content Marketing

    Building the business case for content marketing

    OK, you’ve survived long enough to want to learn how to build the business case. There are a few ways to go about building a strong content marketing business case: Reach early stage buyers, engage new buyers, and conversions.

    Reach early stage buyers

    Most marketing is overly promotional (and we tune it out), but it is also just too early. Your business needs to get people to know your brand, like your brand and then trust your brand enough to want to buy from you. That starts with a significant amount of early-stage dating content. It needs to be non-promotional and not overly creepy. You can’t push too hard, because you want to get to a second date. Ask yourself:

    • What percent of the online conversations on your product category are branded?
    • What is the percent of unbranded search traffic on your website?
    • What is banner effectiveness at driving brand visits?
    • What is the cost of advertising/search landing pages with low organic and social traffic?
    • What is the cost of organic and social website traffic versus paid?
    • What is the cost of content that goes unused?

    Engage new buyers with your brand

    If you found that you are not engaging with the top of your funnel, there are a few ways you can quantify the opportunity to reach and convert them. Ask yourself:

    • What is the time spent and bounce rate on content versus advertising landing pages?
    • What is the cost per repeat visits and time engaged with your brand?
    • Identify subscribers and value per subscriber.

    Conversions you would have never reached

    Finally, you need to be able to measure things that have a quantifiable value that you can take to the bank. These include:

    • Cost per lead
    • Pipeline touched
    • Cost per registration
    • Cost per sale
    • ROI versus average marketing ROI

    Solid business plan leads to a good ROI

    In order to answer the content marketing ROI question for your business, you need to be able to build a solid business based on a deep understanding of your business.

    What is your business’ average marketing ROI, and how can content marketing achieve a higher return? The answer comes down to understanding your content costs, usage and performance.

    From there, you have a few paths to building a solid business case that will allow you to reach new customers, engage them with your brand in a meaningful way and then convert them to new sales and long-term relationships that provide real ROI.

    Related: 4 Marketing Budget Hacks That Will Boost Your Business in 2024

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    Michael Brenner

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  • We Are Only Using 33% of Our Marketing Tech — And Draining Our ROI. Here's What Needs to Change. | Entrepreneur

    We Are Only Using 33% of Our Marketing Tech — And Draining Our ROI. Here's What Needs to Change. | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    In the aftermath of the pandemic, many companies purchased new software – a lot of it. Then came the downturn, and those same companies were forced to examine how much – or how little – value this new tech was driving. This has been especially true for marketing teams, which have been prime targets for shiny object syndrome amidst a rapidly growing array of martech solutions and the pressure to do more with less. With most organizations only using 33% of their martech tools’ capabilities, it’s perhaps not surprising that as budgets shrink, teams underleveraging their martech tools have been forced to shelve them.

    But the problem may not have been that the technology “just didn’t work.” Software on its own is not a silver bullet. And, while vendors have a role to play in ensuring customers can implement their tools, the actual value is the change in how your organization operates *enabled by the software*. You only get this value after the software gets implemented and you change how you do things, including team coordination and buy-in, planning and execution.

    Simply put, every tech purchase also needs to come with a mindset shift about the required change in operations — starting with the end goal and working backward toward the implementation. This approach requires addressing important but often difficult questions, such as how your team is set up, how responsibilities will change and how you will adapt and improve the way you work together.

    Related: Invest in These 5 Technologies to Redefine Your Marketing Efforts

    Great software with built-in workflows that act as guardrails for your team makes these changes much easier. But you will only get there if you answer these kinds of questions:

    Question 1: What are your business goals — and how can marketing tech help you get there?

    Rather than taking a bottom-up approach to buying martech, marketing teams should instead start with their business goals — and how software can help them get there. The key is to be explicit about expected outcomes. At a minimum, you’ll need to align the head of marketing and the technology lead for marketing on the fundamental goals of the project — and clear expectations on roles and timelines.

    But what if this doesn’t happen? I’ve seen this situation play out more than once in the world of digital marketing. The recent push for decoupling front-end and back-end website architecture has led to the introduction of tools like Front-End Sites. At face value, these tools make some pretty enticing promises: more modern and elevated web experiences for users and more seamless integration within a brand’s digital ecosystem on the back end. Where things go off the rails is when the technology investment and approach aren’t tied back to the marketing team, their needs, expectations and goals. The technology is complex, and it often comes with drawbacks for marketers – like more challenging publishing workflows – which they usually aren’t aware of upfront. These issues can be overcome as long as the teams involved go in with the recognition that the tools don’t always offer a quick fix.

    The outcome is never just the purchase of the software itself; it’s about having a plan for internal transformation to get the desired results, whether your intended outcome is optimized workflows, increased efficiency or better customer experiences.

    Question 2: What do we need to change about how we operate to get the outcome we want?

    Here’s an uncomfortable but important truth: Without making internal changes geared toward extracting value, software is essentially useless. Martech buyers (and sellers) need to be willing to get honest about the internal changes required to achieve the outcomes they are after.

    Collaboration between marketing and IT is key. Developers know that any complex software is going to be complicated to deploy, challenging to integrate and won’t always work. Marketers must be aware of this, too – and it must be communicated and planned for. Ideally, you’ll want to pull together a team including marketing, UX design, development and IT to collaborate on an approach that enables the organization to make iterative improvements on a phased timeline.

    It may also mean taking an incremental approach to building and rolling out features. Our digital agency, TNB, did this with their clients to help them deliver better and more valuable online experiences. They undertook an extensive roll-out process to test Front-End Sites as they implemented it, ensuring they made it easy for clients to use the tool right away. And because of that upfront investment, their team has been able to shift budgets away from back-end work and over to front-end work, where it will have the most significant impact on users.

    All software implementations should be treated this way – with a cross-functional team and an agile approach that enables everyone involved to get what they need – if not immediately, then at least with a measure of transparency. If your organization isn’t set up to approach implementation this way, then aspects of how you communicate and collaborate may need to be addressed.

    Related: How Automation Can Change the Face of Your Martech Stack

    Question 3: How do we determine we’re on track to getting long-term value?

    Smart tech buyers know that the job doesn’t end when the tech is acquired. I’ve lost count of how many projects I’ve seen fail altogether when teams didn’t plan how to track value over the long term.

    So, how do you know the tech is working for you? This is where having clarity on the desired outcome becomes critically important. To measure this, establish baseline metrics according to your specific value drivers (marketing teams will likely want to tie them to customer experience outcomes). Then, track your progress over time. You don’t necessarily need to hit all of your goals overnight. Start with rolling out basic functionalities that will improve the customer experience and then build over time. This will instill confidence in the team and show that progress — and results – are possible.

    Ultimately, successfully buying and implementing martech is more about taking an intentional approach than it is about technical specifications. The tech that empowers business transformation can change people’s job descriptions, organizational structure and processes — in a good way. But getting there requires patience and a concerted effort.

    When you do all three of these things and you align all stakeholders (including finance, procurement and even the CEO), you will be amazed how much easier operating can become. These simple but sometimes hard early conversations so often make the difference between the success and failure of technology investments.

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    Zack Rosen

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  • Craft a Winning Pitch Deck That Wows Investors | Entrepreneur

    Craft a Winning Pitch Deck That Wows Investors | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    It takes both art and science to create a pitch deck that will result in funding. You must be able to express the idea for your company clearly and concisely while simultaneously appealing to the sensibilities of potential investors. The average time spent by investors studying decks is approximately three minutes and forty-four seconds. Therefore, it is pretty essential to create a fantastic first impression in a short amount of time.

    What investors want in a pitch deck

    Savvy investors look for certain types of information when evaluating pitch decks. Skipping over or only briefly glossing over these key details can make or break your ability to secure funding. A pitch deck gives potential investors a thorough grasp of your company. Seeking an emotional bond that goes beyond financial gain, they inquire about the goals and objectives of your organization. They require a concise synopsis of the product or service that highlights its special qualities and advantages. A thorough target customer profile that goes beyond demographics to understand their challenges and perspectives is also necessary for investors. They are looking for reliable total addressable market statistics as well as an accurate analysis of the competition environment. It is essential to have a well-considered go-to-market plan backed by specific traction measures. Investors want to see your business plan, financial forecasts, goals for fundraising and a profile of your competent staff. Effectively addressing these issues is essential to winning their support for long-term success.

    Related: 3 Key Things You Need to Know About Financing Your Business

    Tips for improving your pitch deck

    Carefully crafting your pitch deck slides and overall presentation can truly make or break your ability to secure startup funding. Keep these tips in mind:

    Know your audience

    Gaining a deep understanding of your target investors should be a top priority when creating your pitch deck. Avoid the rookie mistake of only including information you personally find interesting or want to share about your company. Be ruthlessly audience-centric in your approach.

    Do extensive research into your investors’ interests, motivations, goals and pain points. Conduct stakeholder interviews and analyze past investments to identify their preferences. Adapt your messaging, design choices and content to closely align with your investors’ worldview, not just your own.

    Speak directly to your investors’ needs and concerns. Put yourself in their shoes. Ask yourself, what excites them? What keeps them up at night? What past investments have they made and why? What types of language and messaging appeal to them?

    Emphasize design

    Design choices are critical for an impressive pitch deck. Avoid information overload and leave whitespace for a clean design by prioritizing simplicity and clarity. Begin with a visually appealing presentation template that provides polished and unified graphics that adhere to presentation best practices. Customize these templates to reflect your company’s identity. Use high-resolution, relevant visuals and photos, keep the text concise, and keep fonts, colors and styles consistent throughout. For a clean, professional appearance, use readable word sizes, high-contrast color schemes, and strategic alignments. Consider modest movements and transitions for increased impact, but avoid anything distracting or unprofessional.

    Make the ask clear

    Being direct and unambiguous in requesting funding is critical. Don’t make investors work to figure out what you actually want from them. Clearly state your need for cash and the amount of money you want to raise right away. Explain how you plan to use the money and how it will help the business grow by doing things like hiring engineers or adding more office space. Link the use of the fund to concrete goals. This will give investors a sense of time. Don’t make unrealistic predictions; instead, be honest about your plans and stress the return on investment (ROI) for investors. Avoid using hard-to-understand jargon, and keep your language simple. Also, use graphs and charts to make your ideas easier to understand. Lastly, add “contingency buffers” to your conservative projections to show that you can be flexible and build trust.

    Tell a compelling story

    Structure your content strategically to craft an emotive, memorable narrative. Hook investors’ attention immediately. Make them care about the problem you’re solving. Build intrigue around your company as the hero. Walk investors through your origin story, product innovation, traction and team. Sequence key information and visuals to build momentum, culminating in a call to action to invest.

    Take your audience on an informative yet entertaining journey, mixing logic and emotion. Outline a vision that inspires investors to join your mission.

    Related: 7 Questions Every Founder Should Ask Potential Investors

    Exude passion

    It’s crucial to convey genuine excitement and passion for your company’s purpose, product and growth potential. Investors invest in people and teams as much as they do in raw ideas. Let your authentic enthusiasm shine through. Share what drives your own personal commitment and investment.

    Be professional but also personable and relatable. Storytelling mixed with vulnerability builds an emotional connection that drives investors to take a chance on you. If you don’t show passion and confidence, why would they?

    Using a strategic, audience-centric approach, you can create a pitch deck that genuinely resonates with investors and secures the funding you need to take your startup to the next level. The work required will be well worth it.

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    Pritom Das

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  • When Investing, Should You Go For Percentage or Dollar Returns? | Entrepreneur

    When Investing, Should You Go For Percentage or Dollar Returns? | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    I was recently speaking with an entrepreneur who’d passed on an investment because it would not need yield the company at least a 10x growth opportunity. I told him those returns might be reasonable when investing in small businesses (under $5 million) but that he should consider lowering his ROI threshold when investing in larger ones.

    My logic was twofold: First, bigger companies are harder to grow as quickly as small ones, so the growth percentages will be lower; and second, there’s the potential to make substantially more money on a bigger company investment, even if the ROI was only 3x to 5x.

    Here’s how to know when it’s better to focus on percentage returns vs. dollar returns when assessing your investment opportunities.

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    George Deeb

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  • 6 ‘Immeasurable’ Metrics That Define Business Success | Entrepreneur

    6 ‘Immeasurable’ Metrics That Define Business Success | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Listen, I get it. When you’re in the entrepreneurial game, it’s tempting to zero in on one number: ROI or Return on Investment. It’s the classic, the old reliable. But let’s get real for a second — focusing solely on ROI is like judging a movie solely by its box office earnings. You miss the nuances, the essence and — dare I say it — the soul of the business.

    Enough with the accounting textbooks already! ROI isn’t the end-all-be-all. There are more dimensions to business success than dollars and cents. Ever heard of customer satisfaction? Employee engagement? Social impact? Yes, I’m talking about those “soft metrics” you often sweep under the rug. Trust me, overlooking these can be the Achilles’ heel for your empire.

    Related: Defining Success: 4 Key Measurements That Go Beyond Revenue

    1. Employee happiness: The backbone of your business

    Let’s cut through the fluff: Your employees aren’t cogs in a machine; they’re the backbone of your business. Their happiness translates into productivity, which snowballs into everything you care about — customer satisfaction, ROI and your bottom line. Don’t just toss a survey their way once a year; dig deeper. Use tools like the eNPS (Employee Net Promoter Score), OKRs (Objectives and Key Results) and regular one-on-ones to get a temperature check. Remember, a happy employee is engaged, and engagement is a direct route to skyrocketing productivity.

    2. Customer satisfaction: The North Star of business metrics

    So, you’ve got a killer product. Great. But if your customers aren’t happy, all the ROI in the world won’t save you. Dive into metrics like Customer Lifetime Value (CLV) and Net Promoter Score (NPS) to get into your customer base’s psyche. And forget about faceless transactions; build relationships. Turn customers into raving fans, and watch how quickly your “immeasurable” metrics start adding zeroes to your ROI.

    3. Social impact: More than just a buzzword

    Think social impact doesn’t affect your bottom line? Think again. Millennials and Gen Z are voting with their wallets and want to invest in businesses that stand for something. Corporate Social Responsibility (CSR) isn’t just for show; it’s a necessity. Whether it’s sustainability or social justice, align your business with causes that matter and measure the impact. Trust me, “doing good” has never been better for business.

    4. Holistic success: The new gold standard

    If you’re still clinging to ROI as your sole success metric, you live in the past. We’re entering an era where holistic success is the gold standard. It’s not just about financial gain; it’s about creating a business that’s a force for good, that people love to work for and that customers rave about. It’s about a 360-degree view of success.

    5. Cultural capital: The underestimated asset

    Another critical dimension often overlooked is cultural capital. I’m not talking about office parties or casual Fridays. I mean the ethos, the core values, how your team interacts and the unspoken norms that govern your business environment. This cultural fabric isn’t just window dressing; it’s a strategic asset influencing everything from talent retention to your brand’s market perception.

    A strong, positive corporate culture can be a significant differentiator in competitive markets. It’s time we start putting a value on this intangible asset. Tools like cultural assessments or even deep-dive interviews with staff can unearth the layers of your company’s culture. Invest in this immeasurable asset because your competition probably isn’t; this could be your competitive edge.

    Related: Is Your Workplace Culture Where It Needs to Be?

    6. Intellectual property: Measuring the intangibles

    Ah, the mystical realm of intellectual property (IP) — an area of your balance sheet that isn’t often talked about yet holds immense value. Whether it’s a patent, a unique business process or even your brand equity, these intangibles contribute massively to your overall business worth. And guess what? They’re often missed when you’re glued to ROI. Establish methods to gauge the value and effectiveness of your IP; it’s not just legal mumbo-jumbo but an asset that can have an exponential payoff in the long run.

    The immeasurables are measurable: The tools you need

    Who says you can’t measure the immeasurables? With the advent of advanced analytics tools, you can quantify almost anything. Consider using sentiment analysis tools to gauge customer feelings or sophisticated survey methods to measure employee engagement. Go beyond Google Analytics; delve into customer behavior and trends with AI-powered insights. Take a closer look at your supply chain — there are hidden social impact indicators all along the way. The point? There’s a treasure trove of data if you’re willing to look.

    The action plan

    Talk is cheap; it’s time to act. Start by auditing your current metrics — what are you measuring and why? Then, identify the “immeasurable” metrics that align with your brand ethos. Once you’ve done that, put your money where your mouth is. Invest in the tools, the people and the time required to track these new metrics. It won’t happen overnight, but if you start now, you’ll be light years ahead of the competition, who are still stuck counting beans.

    Folks, we’re in the business of building legacies, not just bank accounts. Sure, ROI is important, but it’s not the only marker of success. So, let’s disrupt the conventional wisdom, shall we? Stop fixating solely on ROI, and broaden your lens to include the metrics that truly matter. Because at the end of the day, we’re really measuring the impact we’re making on the world. And isn’t that the ultimate success?

    Related: 5 Intangible Qualities That Hold the Key to Unparalleled Business Success

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    Chris Kille

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  • 7 Metrics to Evaluate the Success of Your Marketing Campaigns | Entrepreneur

    7 Metrics to Evaluate the Success of Your Marketing Campaigns | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    The ability to quantify the effectiveness of marketing campaigns and strategies is no longer a luxury; it’s a strategic imperative that separates thriving businesses from those merely treading water. This article highlights the significance of measuring marketing ROI and explores key performance indicators (KPIs) that can help steer your marketing efforts toward tangible success.

    The importance of measuring marketing ROI

    Defining marketing ROI involves determining the profitability of an investment in marketing by comparing the gained revenue against the incurred costs. This calculation is central to understanding the impact of marketing campaigns on the bottom line. By evaluating ROI, businesses gain insights into which marketing efforts are delivering the most significant returns and can allocate resources accordingly.

    Measuring ROI is particularly crucial for marketing agencies and their clients. In an era driven by data, both parties benefit from the ability to make decisions grounded in evidence. A data-driven approach allows marketing agencies to fine-tune their strategies and tailor them to specific audiences, ultimately leading to more effective campaigns.

    As per a McKinsey survey, companies that base their decisions on data and analytics exhibit remarkable statistics: They are 23 times more prone to customer acquisition, six times more adept at customer retention and stand a staggering 19 times higher chance of achieving profitability.

    For clients, it ensures that their investments generate tangible results, fostering a sense of trust and satisfaction in the agency’s work.

    Related: How to Gauge Marketing Success in a Shifting Business Landscape

    Challenges in measuring marketing ROI

    While the benefits of measuring marketing ROI are substantial, challenges often arise in the measurement process. Tracking the diverse touchpoints of modern marketing campaigns, accurately attributing conversions to specific channels and accounting for indirect impacts can be intricate tasks.

    Another issue that may arise is that different businesses and industries have varying sales cycles and customer journeys. This complicates the establishment of a standardized ROI measurement methodology.

    Addressing these challenges requires a combination of strategy and technology. Marketing agencies must adopt data integration techniques that consolidate information from various platforms to form a comprehensive view of customer interactions.

    7 key performance indicators (KPIs) for marketing success

    As we have established so far, effective marketing is more than just creative campaigns; it’s about making informed decisions based on quantifiable metrics. These key performance indicators (KPIs) serve as beacons in the vast sea of marketing data. This section further explores seven crucial KPIs that can help with marketing success!

    1. Website traffic and user engagement metrics

    In the digital realm, a brand’s online presence is paramount — more so than ever. Website traffic acts as a foundational KPI, encompassing metrics such as page views, unique visitors and bounce rate.

    Beyond mere numbers, these metrics signify the extent of a campaign’s reach. But traffic alone isn’t enough; user engagement metrics like time on page and click-through rate (CTR) offer a deeper perspective. These KPIs reveal not only the quantity but the quality of interactions, allowing businesses to refine content strategies and enhance user experiences.

    2. Conversion rate and goal completions

    The ultimate goal of marketing is to convert potential customers into active ones. The conversion rate, a pivotal KPI, measures the percentage of visitors who take a desired action — a purchase, sign-up or download. In different industries, the average conversion rate for landing pages is around 2.35%. But the top 25% of performers achieve rates of 5.31% or higher. For optimal results, aiming for the top 10% is advisable, as these pages boast conversion rates of 11.45% or more.

    Paired with goal completions, which signal the successful attainment of predetermined objectives, these KPIs provide a holistic view of marketing effectiveness. They illuminate the alignment between strategies and outcomes, ensuring that campaigns resonate with target audiences and contribute to business objectives.

    3. Customer acquisition cost (CAC)

    Understanding the cost of acquiring a new customer is pivotal. Customer acquisition cost (CAC) quantifies the investment required for each new customer. A study by Invesp highlights that businesses are willing to spend five times more to acquire new customers than to retain existing ones.

    This KPI holds the key to evaluating the efficiency of marketing spending. Lowering CAC directly enhances return on investment (ROI) — a reduction in acquisition expenses translates to higher profitability. Strategies for optimizing CAC include refining targeting methods, improving conversion rates and nurturing leads more effectively.

    Related: What Is Good Data-Driven Marketing? Here Are 5 Examples of What Big Data Can Do.

    4. Customer lifetime value (CLV)

    Customer lifetime value (CLV) is a transformative KPI that gauges the potential value a customer brings throughout their engagement journey. Research suggests that companies with the strongest omnichannel customer engagement strategies retain an average of 89% of their customers. In essence, Customer Lifetime Value (CLV) is closely intertwined with omnichannel strategies in the realm of marketing.

    Effectively utilizing multiple channels to engage customers throughout their journey substantially contributes to long-term customer relationships. In this context, CLV becomes a vital metric that measures the potential value of a customer across these various engagement touchpoints.

    5. Return on advertising spend (ROAS)

    Return on advertising spend (ROAS) helps evaluate the effectiveness of advertising campaigns by comparing generated revenue to advertising expenditure. A high ROAS signifies optimal budget allocation and campaign efficiency. Conversely, a low ROAS prompts a reevaluation of advertising strategies, ensuring resources are channeled into campaigns that deliver substantial returns.

    6. Social media engagement and influence

    Engagement signifies the degree of user interaction with a brand’s content, measured by metrics like likes, comments, shares and clicks. It reflects your content’s resonance and the sense of community it fosters. On the other hand, influence goes beyond interaction, gauging a brand’s capacity to shape opinions and sway decisions, often propelled by collaborations with influencers. Combining these two can nurture customer loyalty and extend your brand’s impact beyond its immediate audience.

    7. Email marketing performance

    Email marketing remains an indispensable facet of digital communication, with compelling statistics underscoring its significance. Average open rates across industries hover around 38.49%, while click-through rates stand at approximately 2.91%, indicating the potency of well-crafted email campaigns to capture recipients’ attention and drive engagement.

    Effective email marketing strategies encompass personalized content, compelling subject lines and valuable offers, harnessing their potential to foster customer retention, lead nurturing and revenue growth.

    Data analytics and measurement tools

    Data analytics plays a pivotal role in capturing, interpreting and deriving insights from marketing data. Analytics empowers businesses to make informed decisions based on evidence rather than assumptions. This shift towards data-driven decision-making enhances marketing strategies by aligning them with customer preferences and behavior.

    Related: The Most Important Marketing Metric You’re Not Measuring

    Popular measurement tools for marketing ROI

    Several tools have gained popularity for their effectiveness in measuring marketing ROI. For example, Google Analytics offers comprehensive insights into website traffic, user behavior and conversion rates. Google Tag Manager simplifies the tracking and implementation of analytics tags. SEMrush aids competitive analysis, keyword research and SEO optimization. Hyros stands out for its advanced attribution modeling capabilities, offering a holistic view of customer journeys. Google Data Studio facilitates visualizing data and creating dynamic reports. These tools empower marketers to decipher performance, optimize strategies and enhance ROI by making informed data-driven decisions.

    In a landscape where marketing strategies can make or break a business, measuring ROI has emerged as an indispensable practice. The discussed KPIs provide a comprehensive framework for assessing marketing success and guiding decision-making. As marketing agencies and businesses continue to navigate the dynamic marketing ecosystem, embracing data-driven methodologies and measurement tools will be instrumental in achieving sustainable growth.

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    Alex Quin

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  • How to Grow an Email List You Can Monetize | Entrepreneur

    How to Grow an Email List You Can Monetize | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    So, you want to make money with your email list. Who could blame you? Email marketing is hard work, but it also yields results. At its most productive, email has an ROI of $45 to the dollar, which makes it one of the top marketing channels out there.

    But monetizing your email list takes time, so if you’re not there yet, it doesn’t mean that your email marketing isn’t working. You may just need to get a bit more creative and test some new tactics.

    Here are a few ideas you can implement easily, with results guaranteed.

    Focus on the health of your email list instead of its size

    The more subscribers I have, the more sales I’ll make, right? Many business owners think this way and, to an extent, it’s true. A larger audience allows for higher conversion rates, but this principle is null if your audience isn’t genuine.

    On average, 23% of an email list churns annually. While you’re making efforts to gain new subscribers, your existing contacts are degrading. Data decay is natural, but that doesn’t mean you can’t counteract it. Once a quarter, run your list through an email checker to ensure you’re weeding out obsolete addresses. Also, to avoid poor-quality and invalid sign-ups, consider checking all your contacts before adding them to your list. You can do that by using a real-time email verifier and avoid bounces.

    Bounces taint your sender reputation and bring down your email deliverability. So, if you want to monetize your email list, make it a rule to check its validity periodically and remove bounces and subpar data. That allows you to get your emails into the inbox and form a real connection with your audience.

    Related: Almost 25% of Your Email List Has Gone Bad in the Past Year. Here’s How to Fix It.

    Help your content stand out in the inbox

    Your prospects and customers are probably getting more emails than they can read. What will make them click and open yours?

    To answer this question, look in your own inbox and ask yourself what stands out — and why. Chances are the emails that get your attention are tailored specifically to you. Your favorite grocery store may be sharing its weekly deals, featuring the products you purchase most often. Or perhaps you’ve just subscribed to Entrepreneur and you got an email highlighting content you care about.

    Segmenting your email list and personalizing every message should be a priority when trying to engage and monetize your audience. To better understand what your subscribers want from you, consider gathering more data via your sign-up forms. An astounding 77% of consumers are willing to share personal information with brands so they can get a personalized experience.

    Build familiarity so you can stay top of mind

    Launching an email marketing program is exciting. You have a million ideas and can’t wait to see them come to life. But for many business owners, this initial enthusiasm starts to dwindle if results don’t happen immediately.

    However, email marketing takes time and consistency to work. You must send emails regularly and nurture your subscribers with helpful content before you can expect anything in return. With every email you send, your brand awareness increases, so even if you don’t make a sale, you’re warming up your prospects.

    Sending emails on a schedule also supports your ability to reach the inbox. Your consistency tells inbox providers that you have a legitimate business, so your emails are more likely to stay out of the spam folder.

    Consider partnerships and cross-promotions

    It’s a tactic many companies employ to expose their brands to new audiences and increase subscriptions. Initiating partnerships with other businesses doesn’t have to involve much effort. Start by making a list of companies in your industry that could promote your products, and vice versa.

    For instance, as a software provider, my company, ZeroBounce, partners with more than 15 other businesses with inspiring results. These collaborations can take many forms: blog articles, newsletters, webinars and social media cross-promos. Such win-win projects have allowed both us and our partners to boost visibility and email sign-ups.

    Don’t wait — send a few emails today to at least five companies you could partner with. Outline the benefits and emphasize what you’re willing to offer. My own experience has taught me this is one of the most impactful tactics you can use to boost your exposure.

    Related: How to build your email list the right way

    Bonus tips to boost engagement

    To build an email list you can monetize, you must work on boosting engagement first. Here are a few simple ways to entice more people to interact with your emails:

    • Avoid sending out an email if you’re not confident in the quality of your content. People tend to engage with your emails more if they know that every time they click to open, they get something worthwhile.
    • Include your audience in the topics you write about. Be curious, ask questions and spark conversations. Not only do replies help your email deliverability, but you’re also building stronger relationships with your subscribers.
    • Keep a natural balance between educational and self-promotional content. Every email can’t be a sales pitch. The core of your content should strive to inform, educate and entertain.

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    Liviu Tanase

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  • 3 Things You Need to Convince Your CFO to Buy In. | Entrepreneur

    3 Things You Need to Convince Your CFO to Buy In. | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    While it’s true that CFOs spend an exceptional amount of time looking at numbers, many have sat in other seats within their organization and know that there are times when big decisions shouldn’t be based solely on numbers and a budget.

    This is especially true when it comes to digital transformation. because the project itself is anything but black and white. The way in which it is presented is critical.

    For this reason, there need to be elements in your plan that go beyond a dollar presentation when asking for buy-in from your CFO (or other leaders who manage your company budget). After all, digital transformation is more about storytelling — painting a clear picture of what to expect before getting into dollars spent.

    Here are three things that must be in your plan to ensure buy-in and ROI with digital transformation.

    Related: Increase Your Digital ROI in 2023 with These Advertising Trends

    Analyze your approval process and determine who your players will be

    To start your digital transformation plan, I recommend that you do a deep dive into your current organizational processes.

    Ask yourself questions such as:

    • How are big projects currently being managed?
    • Where do bottlenecks and inefficiencies lie?
    • What are the strengths and weaknesses of your current systems and processes?

    Doing this will help you put a plan in place for digital transformation, ensuring that a seamless process follows. One of the biggest missteps a company can make is to skip this step, and as a result, the project gets stalled or put on the back burner because there isn’t a predetermined system in place.

    In addition to analyzing internal processes, you need to figure out which departments will need to be involved in the digital overhaul. Who will your “players” be to ensure the project is successful? Also, and just as important, what are their goals? Your IT department will have very different wants and needs than marketing or sales, so it’s important to identify who the involved parties will be from the get-go.

    Once you’ve analyzed your current approval process and determined which departments will have a say in digital transformation, the next step is to designate who the approvers will be. For example, reducing from six people down to one or two will help to eliminate redundancies, streamline and avoid bottlenecking when it comes to moving things forward with digital transformation.

    Related: What Should You Aim for in ROI?

    Create KPIs that are tracked while the project is happening

    Another common mistake companies make when creating a digital transformation master plan is that they create KPIs to measure once the digital transformation is complete, but they don’t think to put ones in place in real-time for a pre-evaluation of effectiveness.

    This is also a great way to entice buy-in from your CFO by creating milestones as you go. Doing so will not only help you to deliver updates to your CFO along the way, but it will also help if and when you need to request more dollars for a change order because you can showcase the KPIs you have met — making the ask easier.

    Also, as different features become available online, you can use these KPIs to start to show the sum of actions and how they will help lead to the ultimate outcome: ROI. Time on site, or the number of pages visited, are great measurements, and once you can see dollars converting, it will allow other data points to tell their own story. Best of all, by measuring the business impact of new functionalities, you can refine your project backlog and prioritize features that will deliver the most value.

    Don’t cap your budget from the get-go — monitor in real-time

    Never go to a CFO and say, “I need a million dollars, and then I won’t need anything after that.”

    This will only create frustration (and potentially stall the project) when unforeseen needs such as ongoing support, licenses or updates undoubtedly arise. A successful digital transformation project should not have a defined endpoint.

    Instead, your plan should focus on continuously improving your digital processes to adapt to changing business conditions, onboarding new employees and deploying new technologies. With each ongoing change, there will be a need to continuously ask for dollars and resources, so make sure this is in your plan from the get-go. This is where real-time KPIs come into play and will make your life easier when asking for more dollars.

    Lastly, real-time monitoring of your digital processes, once you get started, will be essential for identifying emerging issues that could impact the transformation. However, if you proactively address potential problems, you can mitigate risks and ensure the ongoing success of your digital project. Real-time monitoring also enables you to optimize your processes continuously, further increasing your ROI.

    Related: How to Pitch Your Business-Investment Case

    The path forward

    While there are many things that need to be taken into consideration when it comes to getting buy-in from your CFO, utilizing the above tips will ensure a successful digital transformation, ultimately leading to a new influx of happy, life-long customers.

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    Andrew Walker

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  • How To Create Engaging Video Content for Your Brand | Entrepreneur

    How To Create Engaging Video Content for Your Brand | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    If the successes of YouTube creators like Jimmy Donaldson (who boasts 153 million subscribers as MrBeast) and Felix Kjellberg (also known as PewDiePie, with 111 million subscribers) are any clue, video is in a class all its own when it comes to marketing and gaining reach. As a result, video has become a favorite form of media for marketers. Here’s a quick guide to harnessing the power of video marketing for yourself.

    What video marketing can deliver

    Video integrates seamlessly with smartphones and other small mobile devices, providing a full range of benefits such as increased recall and buying intent. Because it’s more engaging than white papers or articles, it typically improves the amount of time people spend on your website. And the longer people remain in your corner of the web, the more likely they are to buy or explore your other offers — meaning there’s a correlation between video content and your ability to sell.

    Because video works so well, the market is admittedly saturated — but it’s a fixture of the current online landscape, and people want more. The prevalence of video means that your content has to be top-notch to stand out. When the first creators began to pioneer video content, it didn’t have to be groundbreaking to get noticed. Now, there’s so much available video content that you have to set yourself apart; otherwise, people won’t be drawn to your site or YouTube channel. Make the most of your expertise and ensure the quality of every video you produce is high.

    Related: Video Marketing KPIs That Are Crucial for Your Campaign

    Standalone, omnichannel and video

    Does the success of video mean you shouldn’t produce articles, white papers, infographics or other media such as podcasts? Not at all. You’ll always have some customers or clients interested in a different media option, and repurposing your content in various formats allows you to employ an omnichannel strategy to reach more people. In my experience, videos earn more engagement when compared to other content types.

    Before you start, consider whether your video will serve as a standalone piece of content or be part of a larger, multi-touchpoint campaign. There might be specific cases where it makes perfect sense to create only video, depending on your goals and the market you’re working in. But overall, we develop video as another option for engagement rather than having it work in an isolated or siloed way.

    As you decide if your video should be standalone or part of a bigger campaign, keep in mind that there is an array of options for video. You can get creative and utilize features — like voiceovers, digital animation or AI integration — or opt for live video for a change of pace and if your budget allows. Some videos will be less expensive than others. If you are looking to produce live videos, then a dedicated studio and staff will help keep the work focused and well-produced. This will be your most expensive option, and smaller marketing teams should look at digital animation as a great alternative.

    Related: Give Video Marketing a Try and Watch Your Business Grow

    Measuring your video’s success

    Video content is like any other form of media in that there are metrics that can show how well you’re doing, such as the click-through rate and time on site. The most significant metric we measure is how many people visited the video. Factors such as the quality of your thumbnail image or placement of the video on your website can dramatically impact your results.

    The second most important metric is how long viewers watch your video. Our team found that after 90 to 120 seconds, people stop viewing. With that in mind, keep your video short, designing your script so that appealing information or visual shifts keep visitors engaged.

    Finally, track whether people are sharing the video. If they are, the content is resonating with your audience. People won’t share what they don’t connect with. Just remember that elements like the platform’s algorithm can greatly influence the initial impressions you get. A greater number of initial impressions means that more people have the potential to watch and, subsequently, share your content.

    Related: Why Franchise Brands Need to Start Utilizing Video Marketing

    Your basic video content game plan

    You might want to develop specific video-creation protocols within your company to provide consistency and accountability. Here are some basic steps to follow:

    1. Decide how much you’ll spend. Can you afford to hire professional talent? Do you need to spend extra for makeup or editing? Even small budgets can yield fantastic content. Be realistic about how much money you can put toward the video to help narrow down vendor and tool options. Be clear about what the budget is based on.
    2. Choose a length. A limit of two minutes is a good general rule, as explained above — but the length you choose may vary depending on the channel or goal. A video you post directly to Twitter can’t exceed two minutes and 20 seconds, whereas one on Instagram can be up to 60 minutes long. The more omnichannel your approach, the shorter the content you’ll probably need to produce so as not to exceed limits — unless you plan to create multiple versions of the video.
    3. Write your script. Writing an engaging script can be a challenge. Will you hire an outside writer or stay in-house? Either way, the tone of the script has to match your brand and adhere to the length — and budget — you set.
    4. Strategize your video distribution. Will you post your video solely on your website, or social media, too? More distribution channels will likely increase promotion costs. If most of your customers or clients use a specific channel, it’s okay to focus there rather than trying to cover every avenue.
    5. Prepare your captions and transcript. Including transcripts and captions is an American Disabilities Act best practice that can increase SEO reach and viewership regardless of where you distribute. Be mindful of positioning your captions so you don’t block important video elements.

    Aim high and enjoy yourself

    Video is one of the most widely used media forms available for marketing, and for good reason: People are 52% more likely to share a video than any other type of content. If you’re not already making video part of your marketing strategy, now could be your chance.

    Creating videos doesn’t need to break the bank, but set a high bar for quality to ensure your videos have the biggest reach and ROI possible. After that, have fun within the guardrails of your brand. The more you enjoy producing the content, the more viewers will probably enjoy watching it, too.

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    David Partain

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  • Strategies to Optimize Returns in Franchise Digital Marketing

    Strategies to Optimize Returns in Franchise Digital Marketing

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    Opinions expressed by Entrepreneur contributors are their own.

    Return on Investment (ROI). It’s what every brand wants from its franchise digital marketing dollar — money that’s often begrudgingly spent even though most brand leaders know they need to budget for it. Still, doing so isn’t like allocating money for research and development or human resources, where cost can be more easily measured against return. Now more than ever, digital marketing is a nuanced tool that can add tremendous value to a brand name.

    For the same reason, it can leave investors feeling like they aren’t getting their money’s worth. So, how do you measure its value? What criteria do you use, and how focused should you be in determining your franchise’s digital marketing ROI? Well, a lot depends on, well, a lot.

    The right partnership

    Getting a good read on your franchise marketing ROI should always start with establishing a clear and consistent baseline against which it can be measured. It should account for external factors that may impact a campaign’s success, like weather, seasonal trends, economic pressures (think pandemic) and more. Perhaps most importantly, it should consider the skill and experience of the person or the team doing its monitoring and measuring.

    These days, most consumers take their time before purchasing, partly because there are many ways that decisions can be influenced. The digital landscape is increasingly fragmented, and the buyer’s journey doesn’t always start at A and end at Z. A buyer’s digital experience is virtually limitless, which is why it’s essential that your team measures ROI holistically, not just channel — or platform-specifically — and that means it’s essential to partner with marketers who can see the big picture and help you see it, too.

    Related: The Importance of Seeing the Big Picture

    Think about it: we all rely on the advice of experts — accountants, plumbers, lawyers — and you should seek out a digital marketer with the same intention as a doctor or mechanic, as someone who can help you understand a complex scenario and guide you through choices. Good franchise digital marketing integrates many efforts — content, paid advertising, social media, SEO, and more — and experienced franchise digital marketers know that ROI should be measured using a predetermined set of key performance indicators (KPIs), metrics that reflect your objectives. Common franchise development KPIs include cost per lead, click-through rate, organic traffic and more. An experienced franchise digital marketer can help you determine which KPIs are best to focus on, given your brand’s history and goals.

    Emerging vs. established brands

    Identifying what KPIs to focus on as a franchisor will very much depend on whether your brand is an emerging one — new to the industry with a lot to prove — or an established one with a reputation, one that’s either served you well or hasn’t (and here’s where reputation management is critical. An experienced digital marketing agency can help you with that, too!). All franchisors measure success by the number of franchises they sell each year. Still, an emerging brand may have other criteria they’ll use in addition to sales, like whether or not they’ve articulated their story and purpose effectively, whether they’ve reached the best and broadest audience possible, and how clearly they’ve outlined their value against that of the competition. This will mean adopting a long-view marketing strategy that may take more time to measure.

    Related: Can’t Rush a Good Thing: Effective Franchise Digital Marketing Takes Time

    Conversely, an established brand with a good reputation will likely have very different goals that are a subset of the ultimate goal, which is to sell franchises. They may want to reach new personas, like multi-unit owners or veterans, the market for a specific territory or region, or focus on a particular competitive advantage. These goals are more precise and, therefore, may be more easily measured; they might also be more quickly realized because marketing strategies can be highly tailored to meet them. For brands suffering from poor reputation management or a history of dissatisfied customers, marketing efforts will take on a completely different tone and objective, one that looks to reestablish trust and reiterate worth, neither of which can happen overnight.

    The lifetime value of your brand

    As someone who’s been in the franchise marketing sphere for a decade, it’s my experience that whether you’re a franchisor or a franchisee, ultimately, the real return on investment depends on how you view your marketing dollar in the first place: is it an expense meant to deliver results quickly, or an investment, one made for long-term growth? You’d be wise to approach it from the latter perspective.

    All your marketing efforts should add to your brand’s equity or its lifetime value — the place it has in the hearts and minds of consumers and the public, people who include potential franchisees — and that almost always takes time to establish. Most investors want to align with brands they can believe in and trust, in other words, brands that have worth beyond what can be measured by KPIs and ROIs. A brand’s worth is built over time — often years — through creating awareness, articulating culture and values, delivering on promises, and encouraging loyalty; again, this means taking a long-view approach to your marketing strategies and determining ROI.

    Related: How to Vet Franchisors and Predict Your ROI on a Franchise Business

    Taking a long view is especially important in franchising because it’s set up to reward patience financially. Hefty one-time franchise fees paid by new investors and ongoing monthly royalties (typically 5-8% of gross sales and the real bread and butter of a franchise brand) can add up and contribute tremendously to brand value. Every franchise that is sold adds to a brand’s inherent worth, and that growth can only happen if you commit your marketing dollars to work over time. Franchisees, too, should view their local marketing efforts as an investment in their presumably long future, one that’s meant to slowly and steadily grow their presence and value.

    In the end, ROI should always be gauged against the cost of not creating a budget for regular and comprehensive digital marketing. Your brand doesn’t exist in a vacuum and can’t grow unless you do what others want: believe and invest in it.

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    Stephen Galligan

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