ROI (Return On Investment) or ROTI (Return On Time Invested) can be elusive when it comes to marketing. This is frustrating, to say the least.
The key is to define the metrics you’re going to use to measure return… in the marketing strategy…before you execute any tactics. Keep in mind that the metrics we’re talking about are whatever the definable measuring sticks are that you’re going to use to assess progress. This isn’t limited to just digital marketing tactics.
As you determine the measurement metrics, it is important that the metrics you’re using are realistic. You must understand how the tactics work to be able to assign a metric to that tactic. Generally, it’s unreasonable to expect a sale or a new client directly from one individual tactic. Why? Because marketing is a collection of systems of tactics that are set up to work together. Also, depending on how the business is structured, Marketing often collaborates with Sales and Operations on joint efforts to grow market share and open new opportunities. Collaboration among these departments typically results in revenue increases…and each department deserves their fair share of the kudos. Each department does not operate in a vacuum. Departments must communicate so the entire ship can continue to move forward.
This should all be spelled out in a marketing strategy. This way the marketing strategy serves as a tool to guide the execution of tactics and to vet new opportunities. Metrics of measurement are defined so marketing efforts can be assessed as you go along. This also allows for transparency in the business leadership.
Usually a marketing strategy is revisited in October to prepare for the upcoming year. Marketing is a driver for growth. Businesses that are serious about growth keep a close eye on the strategy throughout the year so marketing can be redirected if needed.This enables them to stay focused, keep resources working efficiently and keep an eye on ROI.
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