Continuing a series of blogs on Measuring Marketing Return on Investment (ROI):
Developing ROMI metrics
Calculating ROMI is not a perfect science. In developing ROMI metrics, don’t let a quest for perfection be the enemy of good. Knowing something about your marketing ROI is better than knowing nothing.
By setting realistic performance targets and integrating the performance targets directly into your marketing objectives you will be able to stay on track. Establishing the right metrics combined with tracking progress will help you assess where improvements and adjustments are needed.
- Establish ROMI goals in line with marketing and company business objectives
- Design marketing program and marketing data metrics in tandem to reflect shared marketing program and ROMI measurement objectives
- Design MROI metrics that speak directly to the bottom line; avoid soft metrics
- Focus on metrics that provide evidence change and growth in revenue and profitability and, if successful, will improve future marketing effort
ROMI Metric Examples
Measurement of marketing ROI is driven by metrics. Part of the challenge of developing these yardsticks is that there are so many aspects of that effort that can be measured.
There’s no one-size-fits-all guide to determining which metrics are right for your marketing. The right metrics provide insight into performance, and help focus your efforts and refine your strategies.
“Not everything that can be counted counts.”
(I’ll get to the rest of the quote later)
Some of these potential metrics are soft, nice-to-know measurements – often referred to as vanity metrics – such as increases in Facebook “likes” or your number of Twitter “followers.” Unless a Facebook “like” converts to a completed contact form on your website, this metric otherwise has no impact on sales.
Others are good-to-know measurements of marketing department activity, response rates, website visits and PR editorial coverage.
The most important are essential- to-know metrics that gauge the actual ROI impact of marketing programs on revenue.
The good news is that you don’t have to measure every possible data point to build a successful strategy. In fact, the best course is to focus on a relatively small set of clear metrics that capture the most relevant and meaningful data.
Focus on two categories of metrics: Continue reading