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Calculating ROI

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Calculating ROI Powered By Docstoc
					     Return On
  Investment (ROI)
               Are your marketing efforts paying off?


                                                           ROI: The king of
                                                        all marketing efforts
                                             ROI is the primary measurement
                                             of marketing effectiveness, yet…

                                 70%
               say their marketing efforts
              are under increased scrutiny
                                                                                                    56%
                                                                                      say they’re ill-equipped
                                                                                           to manage ROI
                                                                  28%                                                                57%
                                                   base marketing budgets
                                                                                                                  do not use ROI analysis to
                                                       on gut instinct
                                                                                                                determine marketing budgets




          The challenges of measuring ROI

       Knowing when                        Multiple touches                        Marketing programs       External factors like
        to measure                         are required to                         influence individuals economic trends, weather,
                                            convert a lead                              differently         quality of sales rep




                            Getting started:
                       5 steps to measuring ROI
                                                                                   Step 1: Define success
                                                                                   Define your company's key
                                                                                   performance indicators (KPIs)

                                                                                   Step 2: Set goals
                                                                                   Establish realistic and measurable goals

                                                                                   Step 3: Gather data
                                                                                   Integrate departmental data to get
                                                                                   the big picture

                                                                                   Step 4: Monitor goals
                                                                                   Monitor KPIs weekly to stay on track

                                                                                   Step 5: Use it or lose it
                                                                                   Use data to make decisions and
                                                                                   justify budgets



                            Common ROI Calculations
                                         Return on marketing investment (ROMI)
                                 Measures dollars of revenue for dollars of marketing spent.




                    Short-term ROMI:                                                                            Long-term ROMI:
                 How is your ad campaign                                                                  What can you expect in the
                    doing right now?                                                                      upcoming months or years?
                     Ad campaign cost: $1,000                                                                      Brand valuation
                                                                                                             assessment of brand’s value
                         Sales increase: $3,000
                    Gross sales margin: $2,000                                                         Customer lifetime value (CLV)
                                                                                                    assessment of each customer’s value

                          $2,000 Gross sales margin                                                    Marketing mix modeling (MMM)
                          $1,000 Ad campaign cost                                                         assessment of sales volume
                                                                                                       effectiveness, efficiency and ROI
                                                                                                          of each marketing element
                          200% ROMI

     ROMI of content marketing:
              How is your content
Know what you  marketing doing?
 are measuring:

  conversions,                                                                                                          Use proxies to monitor how your
                                                  Measure secondary                                                     content resonates with readers:
# of subscribers,
                                                 conversion indicators:
  user signups,                                                                                                         likes, retweets, shares, followers,
                                          quality of lead, retention                                                             average pageviews
      sales
                                       period, lifetime value per lead,
                                            length of sales cycle




 Successfully calculating ROI helps companies determine the
   value of marketing efforts today and in years to come.



                                                           Infographic created by www.4imprint.com, based on the
                                                           Calculating ROI Blue Paper®. Download Blue Paper at:
                                                           http://info.4imprint.com/bluepapers/calculating-roi/
www.4imprint.com
Sources
1. Jensen, Sylvia. “4 Ways of Measuring Marketing ROI.” It’s All About Revenue The Revenue Marketing Blog RSS. N.p., 26 Nov. 2012. Web. 18 Dec. 2013.
   <http://blog.eloqua.com/measuring-marketing-roi/>.
2. “Study Finds Marketers Struggle with the Big Data and Digital Tools of Today.” PRNewswire N.p., 12 Mar. 2012. Web. 19 Dec. 2013.
   <http://www.prnewswire.com/news-releases/study-finds-marketers-struggle-with-the-big-data-and-digital-tools-of-today-142312475.html>.
3. Miller, Jon. “How to Measure the ROI of Your Marketing Programs.” Marketo Marketing Best Practices and Thought Leadership. N.p., 14 Mar. 2013. Web. 18 Dec. 2013.
   <http://blog.marketo.com/blog/2013/03/how-to-measure-the-roi-of-your-marketing-programs.html>.
4. Rogers, David, and Don Sexton. Marketing ROI in the Era of Big Data:. Rep. Columbia Business School, 2012. Web. 19 Dec. 2013.
   <http://www4.gsb.columbia.edu/null/2012-BRITE-NYAMA-Marketing-ROI-Study?exclusive=filemgr.download>.




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