To paraphrase John Wanamaker, the famous 19th century Department Store Magnate, “Half my marketing is wasted. I just don’t know which half.” Unfortunately, company boards are no longer likely to smile at this quip.
The Marketing community is under extreme pressure to justify their marketing spend to company Boards. More often than not they must now do this by showing a direct link between their marketing spend and company profits.
As an example of the impact of this trend, the 2003 AFR BOSS Marketing Directions Survey shows that there is an increasing demand for delivery and accountability from Senior Executives.
What’s more in tough, and not so tough, times it is typically marketing budgets that are the first thing that to be cut when a company wants to improve the short term profitability. Generally this is because the marketing group has not implemented the rigorous line of sight reporting and return on investment methodologies other groups have had for years. Without these processes it is much harder to justify expenditure on marketing.
The question now uppermost on many marketing executive minds, and not so far down the list for CEOs, is how to demonstrate and maximise Return On Marketing Investment? This first question leads to a raft of others:
- How do I get strategic alignment and drive ROI impact across marketing and operations?
- How do I prioritize tactical activities and campaigns whilst optimizing customer contact?
- What robust metrics do I measure to determine short term goals that contribute to higher long term profitability?
- What long term robust marketing metrics do I measure to drive long term profitability?
Unfortunately the answers to these questions are not found in a marketing or a financial text book because they derive from a hybrid of both disciplines. However, this is an area in which Genroe are specialists.
Genroe’s Marketing ROI methodology is a 360 degree view that enables a company to measure their return on marketing investment and constantly improve it. It incorporates perspectives such as:
- Internal staff change management to drive the customer focus
- External customer satisfaction view
- Implementation of metrics that measure the drivers of ROI across marketing and operations
- Efficient management of tactical activities and contribution to business goals
- Clarity of direct response acquisition in the overall CRM mix
What’s your marketing ROI? Let us know by dropping a comment below!