Three Proven Strategies to Skyrocket ROI for SMEs

March 11, 2025
11:34 am

For SMEs, every adpound (or Ad$) spent must drive measurable results. Yet, many struggle to see a strong ROI (Return on Investment) due to a general misalignment of expectations, metrics, and business objectives.

Spending £1 to make £10 may be the goal, but creating an opportunistic relationship with customers can be detrimental in the long run. In a world where roughly 90% of start-ups fail, understanding ROI is crucial.

So, what actionable insights can I share with SMEs to positively impact ROI? One thing I’ve learned is that to make money, you must be willing to spend it. However, over-investing in intangible assets (such as brand value) while neglecting market analysis, projections, and real-time forecasting can be costly.

Let’s outline a practical roadmap to build a realistic ROI strategy, boost sales, and outperform competitors while gaining market share.

Laser-Focused Marketing: Target Smarter, Not Harder

We have already presented a guide for a good CMO, and I truly hope 2025 is the year CMOs worldwide can finally take a more data-driven approach because their companies have understood how to collect data. I also hope their budgets reflect their company’s ambitions, grounded in reality rather than an imagined metaverse. This is my genuine wish for marketers everywhere.

The key takeaway for the rest of us is to avoid casting wide nets, hoping for random success. This approach might work in the short term, but over time, you will see more bounced leads, unsubscribes, and stagnant sales.

Quick Wins for SMEs:

Define Your Ideal Customer Persona: Whether you sell luxury handbags, personalised stickers, or craft beer, the process remains the same. Identify the demographics, pain points, and behaviours of your most profitable customers. However, do not focus solely on them. Remember the power of the long tail: those users who may spend less but do so consistently or buy less frequently but with significant basket value. Use Google Analytics or explore its alternatives, as Google’s silent algorithm updates might be leaving you with more questions than answers.
Optimise Channels Using Primary Data: Audit your marketing spend, and don’t be afraid to pivot. Sticking to old strategies just because they worked before is a mistake. If Instagram drives 70% of your traffic but not conversions, rethink your ad placement within the marketing funnel. Analyse why people abandon purchases and, crucially, how much that is costing you. Are there better ways to generate the same basket value while increasing conversions?
Understand Retargeting: Many first-time visitors leave without purchasing. Following them through their journey and sending occasional nudges can improve conversion rates. Set up a structured retargeting strategy.
Leverage Affiliate Marketing: This remains one of the cheapest and most effective options and my personal favourite. Partner with content creators who accept ads on their platforms, use platforms that are extremely well known and try. While AdBlockers exist, affiliate marketing allows you to pay only for clicks, leads, or conversions based on your terms.

Operational Efficiency: Do More with Less

Inefficient processes drain cash. Streamlining operations frees up resources to reinvest in growth.

Quick Wins for SMEs:

Audit Your Workflows: Map out every process, from inventory management to customer onboarding. Identify bottlenecks. A retail SME, for example, might discover that manual inventory tracking wastes 10 hours weekly. Automating this with widely commercially available tools reduces errors and saves time.
Automate Repetitive Tasks: Use technology to eliminate admin work. I speak from experience when I say that we saved 15 hours monthly by automating client reporting with existing and very affordable solutions that have also integrated AI in their workflows.
Outsource Non-Core Activities: Focus on your strengths. Outsource tasks like bookkeeping, IT support, or content creation to freelancers or agencies. Or go for one pit-stop. We advised a company to transition their in-house maintained e-commerce to a commercially available e-commerce platform, allowing them to become more agile and cut a lot of noise.

Action Step: Identify one process to automate this month. Start with email marketing or social media scheduling. No need to explore BigCommerce or Shopify as of yet. Think small first and prepare to scale.

Customer Retention: Turn Buyers into Advocates

Acquiring a new customer costs 5–25x more than retaining an existing one. Yet many SMEs prioritise acquisition over retention. Flip the script with these strategies:

Quick Wins for SMEs:

Personalise the Experience: Use CRM tools like HubSpot to segment customers and tailor communications. A skincare brand, for instance, might send personalised product recommendations based on past purchases, boosting repeat sales by 30%.
Launch a Loyalty Programme: Reward repeat customers with points, discounts, or exclusive perks. A coffee shop saw a 20% increase in visits after introducing a “Buy 10, Get 1 Free” card.
Act on Feedback: Regularly survey customers to identify pain points. A SaaS company reduced churn by 15% after addressing usability issues flagged in feedback.

Action Step: Create a loyalty programme framework within the next two weeks. Start simple—offer a discount on the next purchase after three transactions.

Conclusion: ROI as a Growth Engine

Improving ROI isn’t about cutting corners—it’s about strategic focus. By refining marketing, eliminating inefficiencies, and strengthening customer relationships, SMEs can unlock exponential returns.

Start small: Pick one quick win to implement this month. Track results, iterate, and scale. Remember, ROI optimisation is a continuous journey, not a one-time fix. The SMEs that thrive are those that embrace agility and data-driven decision-making.

Your Next Move: Audit your marketing spend, automate one workflow, or draft a loyalty programme outline. The path to higher ROI begins with a single step—take it today.