SIG: Marketing

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Subject: Measuring Marketing ROI

  • Marketing

1.  Measuring Marketing ROI

Posted 02-13-2017 01:01 PM

Measuring the ROI (return on investment) of your marketing activities has remained a top marketing challenge according to research. But, this is it also a way for marketers to understand the effectiveness of each particular marketing campaign, piece of content, etc. How do you overcome this challenge? 

Audra Carlisle
CRM Account Executive
Minneapolis MN

2.  RE: Measuring Marketing ROI

Posted 02-17-2017 10:54 AM
Oh the age-old challenge for marketers - how to measure ROI!  Unfortunately, I don't have the magic solution, but can provide some insight on some things we've done to help us make data driven decisions around our marketing initiatives.

In an ideal world, we'd be able to attribute revenue to this type of hierarchical structure:

Marketing Campaign > Channel > Ad > Offer

We also know that in most instances buyers have multiple interactions with our marketing campaigns during their path to a decision.  So being able to measure 'influenced revenue' would also be valuable.

But, back to reality!

We have developed a set of KPI's based on our current infrastructure and the capabilities we have creating two buckets: Sourced Conversions and Non-Sourced Conversions.

Sourced Conversions:
We use an 'original lead source' field that is captured on all non-Cobalt forms via hidden field.  This indicates campaign + channel + ad + offer and is static (does not change).  This helps us attribute revenue to the first interaction someone has with our marketing efforts. We can then pull revenue by source and compare to campaign costs to determine ROI. In addition, campaigns that include offline channels such as direct mail a promo code is used to help track conversions. 

Non-Sourced Conversions:
We could probably consider this 'brand awareness' but we know there is a direct correlation between the number of website visitors and conversions so we consider website referrals an important ROI metric. Although not linked directly to revenue, we use this data to derive some assumptions based on the number of web visits generated by each channel. So although some of our marketing campaigns show $0 revenue and therefore a negative ROI, we look at the influence it has on our website traffic and use that as one of the decision factors justifying the channel. 

We are continuing the refinement of our systems and processes to so that we can get closer to 'perfect' state (if that exists).  My advice is to start small  - maybe that means just tracking overall campaign spend vs. overall revenue - and then making incremental improvements from there.  Happy reporting!

Missy Heilman
Director of Marketing
Dynamic Communities
West Fargo ND