It’s All About Your Return On Investment
What Is It
Remember when marketing ROI was “easy?” Finish your project on deadline, come in under budget, win an award, and if the company president liked it (or his photo), then you had great “ROI.” Well, the times have changed and now you’re squaring off with the CFO, trying to justify the marketing spend and wondering how to really prove ROI, let alone even define it.
Too often marketers are only focused on tactics or output rather than on effectiveness and results. On the other hand, businesses, shareholders and analysts are focused on the bottom line like never before. Understandably, marketing departments are feeling the pressure. So what to do? Remember, it is not about winning awards. It’s about how marketing can be aligned with the company’s goals and objectives to directly or indirectly drive business results.
How We Can Help
Since no two companies define marketing ROI in the same way, Sundog will work with you to better understand your marketing goals and programs, and to help clarify and define ROI in the context of your marketing efforts.
Then we will develop a custom ROI framework, taking into account what matters most to you, your marketing efforts and your business goals, be it a single tactic, a full campaign or an annual marketing plan.
To that end, Sundog will help you precisely quantify the inputs of your marketing tactics in relation to the outputs of “moving the needle” on achieving your marketing goals, such as targeting, retention, acquisition or leads, conversions and sales. In addition, we will help you capture key data and performance metrics that will help you measure, show and prove exactly what your marketing efforts are doing, using seven different levels of marketing ROI measurement.
And that will provide you with the confidence to face your finance department when they ask you, “How much did you spend, and what did we get back?”
How do you define ROI?
Marketers still don’t have a consistent way in which ROI is defined or measured. An Association of National Advertisers/Forrester Research study revealed that Chief Marketing Officers define ROI in the following ways:
How does your company define marketing ROI? A survey conducted by Forrester and the Association of National Advertisers (ANA) found “a lack of consensus among marketers on how to measure/define their return on investment (ROI) in marketing.”
- Incremental sales revenue generated by marketing activities, 66%
- Change in brand awareness, 57%
- Total sales revenue generated by marketing activities, 55%
- Changes in purchase intention; 55%
- Changes in attitudes toward the brand, 51%
- Changes in market share, 49%
- Number of leads generated, 40%
(Source: Association of National Advertisers/Forrester Research, as reported in CMO Magazine, September 2004)