I’m amazed at how many clients and prospects have given no real definition to their goals. They often embark on marketing and advertising campaigns with the hopes of increasing business and sales, but no real determination of what they expect from their efforts.
In response to a recent IDC survey, just two out of the ninety companies surveyed had overall marketing ROI measurement systems in place, and these two were companies with over $10B in sales!
So, how do you know what these goals should be? For every company, the goal itself might be very different, and not related to bottom line financial returns. Take Cisco for example. Every employee at Cisco is compensated based on measurement, but the measurement is based on their customer satisfaction rating. Good motivating incentive that can be measured.
Do you think Cisco started with the actual mathematical formula to prove their progress? Probably not…but maybe they do now. That’s the very same kind of thinking you need to instill in your marketing.
So to define marketing ROI, you have to define the measurable goals. Some professionals call this your Marketing Impact Model.
To define meaningful goals, you have to define your own Marketing Impact Model. This model takes your vision, and turns it into bottom line results. I think one of the easiest MIM models relates to permission based systems. That’s also a great way to measure your brand. What better measurement than to know how many customers trust you enough to provide you with permission to contact them whenever you’d like?
Another good idea is to test one campaign at a time. For an easy way to do this, simply plug-in the number on this free calculator.
Be sure to revisit your goals and the marketing impact model. Are they still viable for you? Do they need adjustment?
If you’re doing a good job growing your own permission list, you should be shifting more of your activities and your budget from capturing permissions to maintaining and upgrading the ones you’ve captured. As a result, you’ll enjoy an overall lowering of your marketing costs. Great ROI.