I recently spoke at the Tonkin Conference in Sydney that was about Return On Marketing Investment (ROMI). It was an interesting conference with some great speakers such as the Head of Marketing for Virgin Mobile, Seek, Greenpeace, Deloitte, Ansell Healthcare and more. However, I was surprised with this kind of talent speaking and the focus by senior management and boards that more people didn’t attend.
Gone are the days when marketers had big budgets and free range spend to do advertising and campaigns etc. Now the boards and senior executives want to see the ROI attached to the marketing spend. Our dollars have to be justified and to be honest I think with good reason. The business is busy working hard to bring the money so when we spend that hard earned money we have to make sure it counts.
Working with my clients now and particularly in my previous role as Marketing Director for Tyco, Return on Investment is key to any good marketing strategy. At Blaze Marketing we devised a model to ensure we and our clients stay focussed on the ROI and deliver marketing strategies that get results.
1) Metrics – Know your metrics. Begin (testing) to have a sound targeted strategy, middle (reviewing and tweaking) and end (results and reform for future campaigns.)
- Put in place a tight reporting process for your team and frequently review the CPL (cost per lead) and CPS (cost per sale).
- Make sure you know what the performers in your marketing portfolio are. For example, what has the best CPL? These are not always the ones you’d expect.
- Work out a small, manageable dashboard of key indicators that you can track in your business. There is always more data to review, but you will get lost in the detail and never keep up with monitoring it so make it manageable. Better small and frequent than big and not at all.
2) Innovate – Be innovative in concept/idea; innovative in creative design; innovative in marketing channels; innovative in execution; innovative in data capture. Innovation doesn’t always mean something BIG or brand new. Innovation can be as simple as doing ordinary things in a different way or speaking to a different group.
3) Integrate – Make sure the same message is occurring across all your marketing activities and channels. Use every marketing activity / channel / opportunity you can. Make every dollar work for itself and every activity stretch as far as possible. For example don’t just do a print ad – tie-in an editorial and press release with it. Post your press release across the net and on your site. Distribute the release to other publications and relevant associations. Post about it on all your Social Media outlets: Twitter/Facebook/LinkedIn. Post it on Pinterest. Put it in your E-news. Market it internally and so on.
4) Internal – Ensure your internal processes are in place and market your message internally to engage your employees. This is essential. This step is too often overlooked because people don’t think they should spend money internally. External marketing delivers the lead but your internal marketing helps close the sale. Leads are important, but it’s the sale that really counts. There’s not much worse than spending big money on a campaign only to lose the lead when an employee doesn’t know what they are talking about or gives the lead bad service. As an internal marketing and employee communications specialist, I’m a big believer in the value of internal marketing. Talk to your employees. Get them engaged in the business.
5) Practical Strategy – Make sure your strategy is practical and that tactically, you delve into the detail. Don’t just believe that ‘if you build it they will come.’ Have good discovery and testing even if it’s small, what we call ‘Patch Testing.’ Review and revise frequently. Don’t wait ‘til the end of the campaign. Have robust systems and people backing it up and, of course, have a solid strategic cut through idea and creative.
- If you have got the jaw-dropping exciting marketing / campaign idea don’t let it down by not being practical about the application and making sure all the boring practical detail items are covered off.
- Don’t write off the bread and butter – don’t make the mistake of thinking all the boring less exciting or traditional marketing activities are not worth the investment
- Take a multipronged approach – don’t throw all your eggs in one basket. It could be a big return but it could also be a big loss
At the end of the day, no matter how amazing the creative or the idea, if the foundations are not strong – the planning, the processes, the business engagement, the execution and the follow up – the likelihood of a profitable ROI are greatly reduced.
For a great video on Marketing ROI see our What’s Hot section of the TrailBlazer e-news.
Talk to us about a consultation or review to help increase your marketing ROI.