Improving Marketing ROI
At Musqot Marketing Technology, we are passionate about helping our customers to improve the return of their marketing investments, their Marketing ROI.
Helping our customers to work smarter, more efficiently and enabling them to make their marketing more effective.
The purpose of marketing ROI is to maximize the business outcome of marketing spendings and to increase the efficiency of the marketing organization. It has no intrinsic value, the number itself is not that relevant. So keep the eyes on the ball – the focus is to improve the business outcome and to work smarter.
Some organizations are working with marketing ROI as a math exercise, just to get a number out of it. At Musqot, we think this approach is an oversimplification. Metrics are very important, but a single number can be misleading. For example, if you are just doing this as math exercise – your relative ROI can increase while the actual business results decrease. So although marketing ROI is a strategic metric, it is not the only metric and perhaps not even the most important, at least not unless it is put in the perspective of total revenue volumes (actual as well as targeted).
Boosting marketing ROI requires work on two fronts. One side is to increase the efficiency in the internal processes, working smarter and removing any clutter. The other side of the is to focus on the marketing activities that are most effective, and continuously striving towards raising the effectiveness of the others.
So we need to find the best metrics for both the internal efficiency and the business outcome of marketing. This will require some thinking and a good understanding about the current situation as well as the objective. Is the key objective to produce more marketing assets with the same resources or is it more important to cut the lead-times from idea to activity?
Same thing with the business outcome! Depending on the business and the industry, there are different metrics. The actual sales revenue is a great metric for fast moving consumer goods, but not so relevant in a B2B environment where the sales process is 9-12 months or longer. It is also important to consider how to use strategic and tactical metrics. Consumer awareness or brand recognition for example, takes long time to establish and to maintain. They also have a huge business value. Facebook likes on the other hand, are great to quickly see if a message is flying, but rarely provides any direct links to sales.
Finally, don’t let perfect be the enemy of good!The focus and overall objective is to continuously improve the business outcome and the internal efficiency. Keep it simple, and keep working with that objective.