“Video increases conversion rates, encourages sharing, and creates a more engaging experience for the consumer.” (PreviewNetworks)
You can find lots of tools and strategies for assessing ROI. MWPDigitalMedia notes, “There are a number of ways that you can measure the success of online videos and these will depend on your goals.”
At Fresh Level, we like to simplify the calculation. We recommend thinking in terms of breaking even.
The reason? Because one of the great things about video is that after you break even, your video continues to work hard for you to generate sales, creating an infinite return on your investment.
Here’s how: Ask yourself, in order to break even on the investment in a video, how many customers or new sales will you need to generate? For example, if a new relationship is worth $10,000 and your video cost is $10,000, you only need one customer to break even! Additional sales you receive based on the video is an infinite return.
Long after your video has been produced and you have made back your initial investment, you can continue to use it as part of your marketing strategy.
If this makes sense to you and sounds like a good way to leverage your marketing budget, then let’s get started!