Optimal values ​​of DRR

[subornaakter40]

Many people believe that a small DRR is ideal. It would seem that there can be no mistake - after all, if little is spent on advertising and a lot is earned, then everything seems to work perfectly. It is important to understand that the DRR norm is different for each business. Some businessmen focus exclusively on this scheme:

DRR is less than 100%. The advertising campaign pays for itself, and less money is spent on it than the profit it brings.

The RRR is 100%. The advertising did not medical insurance leads email list bring any profit, but it paid for itself.

DRR is more than 100%. The campaign is unprofitable, expenses are greater than income.

The mistake is that a DRR of 100% or higher can be normal if we are talking about goods or services with a long LTV (product life cycle). This is often the case in companies related to the beauty industry. For example, manicure, pedicure or eyebrow correction services. The average bill for such a procedure is 2,500 rubles, but the same amount is spent on advertising to attract one client. It turns out that the DRR is 100%.

Optimal values ​​of DRR

Source: shutterstock.com

It would seem that advertising works at a loss. But it is important to consider that if the master is good and the service was provided qualitatively, then the visitor will come again and again for this beauty service. Each visit will bring a profit of 2500 rubles, and maybe more, and there will be no more costs for attracting this specific client. Even if the first service was unprofitable, then all the losses will pay off.

This also applies to a small DRR. If a company is not fully loaded (a beauty salon has a lot of free slots, a cleaning company has no appointments, etc.), and the DRR is low, this indicates that the company is not using the full range of marketing opportunities. It is necessary to invest more in development.

Ways to improve DRR
There are different ways to improve DRR. It is important that an audit of the current advertising campaign is conducted before this. The results will demonstrate weaknesses that need to be immediately eliminated.

It is quite possible to influence the DRR indicator:

Improve the website. It should work without problems, load information quickly, especially at the stage of submitting an application and placing an order. Otherwise, a person may simply not complete the registration and go to a competitor's website.

Set up advertising. It must correspond to the desires and needs of the target audience, only then will it be effective.

Experiment. Don't be afraid to try different tools. Perhaps, among them there will be the optimal one that will be able to take your business to a new level.

Process requests promptly. Managers must not only respond quickly to all incoming requests from clients, but also be tactful in communicating with customers.

Analyze search queries. This will help you reach more people – potential customers. Highlight keywords and phrases.

Analyze the site traffic. You need to find out how targeted it is, and also calculate the bounce rate from ads.

Target your ads. This will not only speed up your sales funnel, but also increase your website conversion.

Actively work in social networks. A competent SMM specialist in the team will ensure an influx of new potential clients.