Why Calculate your Marketing ROI?
You know you should be calculating your return on investment for your marketing. Maybe you even are, but are you calculating correctly? Here are a few tips on calculating your ROI:
Let’s start with the Basic Needs for Determining ROI:
- Objective (what exactly do you want to happen as a result of a campaign)
- Strategy to achieve the goal/objective
- Strategy to measure the results
- Plan to process and report on the results
Since the objective is?the most?important, you need to choose that first. ?So what is your objective? Here are a few common ones:
- Build relationships
- Increase response rates/inquiries about company’s product or service
- Highlight capabilities
- Brand recognition
- Improve perception in the marketplace
- Determine which marketing channels deliver the best results
- Increase sales with current customers
- Generate awareness/interest with a select group of prospects
There are generally 8 different ROI analysis options. Now that you have your objective, which of these is most important for you?
- The number of responses
- The cost per response
- The return-on-the-cost of the printing
- The breakeven point of the costs
- The increased percentage of revenue for a customer
- The cost in dollars for every percentage of response increase
- The future value of a new customer (Do they repeat buy?)
- The cost associated with losing a customer
The point is you need to be able to measure, know what you want to measure, measure it accurately (no false data, bias or second hand information), and in a balanced way. No matter how the results turn out at least you will know the information that can help you for your next campaign.
If you have any questions call us 619-448-6111 or email firstname.lastname@example.org. We are glad to help!
Please note: this post was originally published at http://sumgould.wordpress.com.