Yes Virginia, it does mean better marketing ROI

There is nothing new to a ‘push for better marketing ROI’. What is new is the criticality of return on investment. If it wasn’t mission-critical before, the GFC and economic pressure have ensured it is now.

So now that your boss and the Board demand that you talk the language of numbers, how are you going to make them really sit up, pay attention and throw budget at you? Yes that is a bit contradictory – GFC and gaining more budget – but if you can demonstrate your marketing ROI will be triple digits several times over, reducing budgets equates to limiting your own growth, so aim for more or at least to hold steady against last year.

It is possible to take the same campaign and improve response by over a third while not spending close to half your budget. The reason you save budget is you are no longer targetting everyone in your campaign as equals. There are those who will leave because you contacted them – your contact triggers a consideration of alternatives and attrition (read about Telenor and churn). There are those who aren’t impacted at all by your campaign – if they were to buy they would regardless; if they won’t buy they won’t be fishing out their wallet just because of your communication.

The focus, the core, the central ethos for your campaign is to only communicate to those for whom the contact triggers them to take a desired action – without the campaign they would not react. The campaign directly causes a response so every dollar spent is returning incremental revenue.

But just as Wanamaker found in the early days of advertising, it can be difficult to determine who will be persuaded by your campaign and who it will be wasted on (waste in terms of no return). Well, it was until Uplift Modelling.

And for those who are under pressure to deliver greater marketing ROI right now, an uplifting insight using Campaign Checkup is free.

 

This entry was posted on Monday, July 6th, 2009 at 5:50 pm and is filed under For Marketers & Students. You can follow any responses to this entry through the RSS 2.0 feed.

 

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