In a post at MarketingProfs’ Daily Fix blog, Lewis Green ponders an age-old quandary facing marketers: How to prove value to a company’s top leadership. “Let’s begin by ending the argument regarding ROI,” he says. “When we say we can’t measure it, we sound like whiners. Our bosses don’t want to hear it and we will never convince them that marketing efforts can’t be measured in terms of a return on investment as measured in dollars.” Here’s his solution:
Stop measuring ROI against tools like social media, public relations and advertising. Instead, he argues, marketers should present ROI based on the success of quarterly and annual results. “The objective might be something about getting the right people to notice the new product and to get that product in the right places,” he says. “[B]y working with sales and customer service and retail in this example, the marketing effort can take credit for creating most of the initial sales of the product.” In other words, he continues, you can “create a formula that represents each functional area’s cost as compared to revenues.”
Develop case studies for each and every campaign, project and objective in which marketing plays a role. With realistic metrics, you can gather quantifiable data that bolsters anecdotal evidence, and demonstrate to key decision makers how marketing contributes to the bottom line. “I bet that soon marketing will not be seen as discretionary spending,” says Green.
Stop using jargon, acronyms and generalities to frame marketing success. “When we do so,” he argues, “the others around the table hear blah, blah, blah. Be specific. What did we do and how did it work?”
Source: MarketingProfs’ Daily Fix.