An unsecured line of credit is touted as an all-inclusive financial solution for struggling businesses. The problem is very few borrowers have a set plan for how to use the new-found cash flow. As a result, they don’t focus on long-term benefits. Truthfully, if you want to get longevity out of unsecured funding, you need to start thinking creatively when it comes to investing your resources.
ROI Models That Work
One of the quickest ways to get the maximum benefit from an unsecured line of creditis to ask yourself this question: what area of my business is going to give me the highest return on investment (ROI)?
When it comes to constructing an ROI Model, experts recommend business owners go back to basics. How basic, you ask? It’s time to visit your local post office.
Through Rain, or Snow, or Sleet, or Hail: The ROI Power of Direct Mail
If you’re beginning to doubt the power of old fashioned snail mail, you’re not alone. This is the age of social media, blogging and internet-based marketing. In such an overtly tech-savvy society, is there still a purpose for direct mail (DM) campaigns?
Marketing strategists would like to think so. According to their stats, DM has maintained a consistently high ROI rate. That may be hard to believe, but consider this. Direct mailings are processed through the world’s largest retail network – the United States Postal Service. Domestically, the network is larger than McDonald’s, Starbucks, and Wal-Mart combined.
Revenue Production in Four Steps
With the average business sending out a half-dozen DM’s monthly, companies are taking a second look at DM Methods, and it’s paying off.
Step one: Integrate the DM campaign methods. The value of social media and online marketing can’t be ignored, so use it. The postal service is one of the largest learning management systems available; combine it with a well-timed e-mail reminder, text message, or Facebook offer, and keep an eye on the response rates.
Step two: Test how well the strategy works. The best way to test this is through personalization. Personalizing a mailing creates a vested interest automatically. This step is more time consuming and expensive, but if you invest your unsecured line of credit in this area, the return is worth it. The sense of consumer value it creates translates to customer loyalty and increased sales.
Step three: Prove that the strategy works by testing and tracking it. This is where the tracking statistics do the work. The numbers gauge the success rate of the DM. They show what works and what doesn’t. Aspects of the model can be amended in later tests to increase the ROI rate.
Step four: Follow-up. This is the step that keeps the ROI rate on DM Campaigns consistent. Invest the time in establishing an ongoing relationship with your customers and the effort will produce profit.
ROI Strategies like this stop you from wasting limited resources and actually puts those resources to work for the immediate strength of your business.