Marketing ROI in the Upturn
Am I being optimistic about business showing improvement? I believe it is, if only slightly and not in every sector, for sure. I also believe this trend will continue, at least over the near term. Marketing spend will have a lot to do with how robust the improvement is because it will stimulate consumer spending and spread confidence and all the rest.
For those of us in the marketing business, times won't be like pre-2008. Two things have happened since then:
1. Consumer have learned how to be more astute consumers. Need and technology have enabled consumers to sniff out real value before opening their wallets. Shouldn't be a surprise. Take a read, or re-read, of Cluetrain Manifesto.
2. Companies are demanding greater accountability for marketing dollars spend. Management is insisting that their marketing folks demonstrate the payback - the ROI. Proof of performance is not new but as businesses gain the confidence to spend more on marketing they (and shareholders) will want ongoing assurance of that thy are getting return on their investments. What will management be looking for? They will want quantifiable metrics that can trace to sales.
Among other things:
- Perceived Quality
ROC (Return on Customer)
For marketers to have any hope of demonstrating MROI they must be sure they have a solid, winning strategy in place. Strategy is the marketing action plan that drives all of the reasons why and how the consumer should care about your product. Strategy begins with establishing and validating the relevant value of the product. What is it about your product that 1) separates it from competitive offerings and 2) makes it more desirable?
Validation can be partly judgment but also requires a true understanding of the audience for your product - your target audience. You will also need to know your competitors, cold. And don't forget that competitors come in different forms.
Armed with this knowledge you can more accurately understand where your product fits: how desirable it is; what consumers might pay for it; factors influencing positive - and negative - perceptions, etc. Strategy is the key.
Measuring ROI begins with the assumption that your product has a market, and given smart marketing communications has a good chance of success. If your brand is getting tired and needs revitalization and more effective marketing communications, Casey Communications has the experience and track record that can help you increase value from current customers, win new customers and be a market leader.Contact Jim Casey.
If your brand is getting tired and needs revitalization and more effective marketing communications, Casey Communications has the experience and track record that can help you increase value from current customers, win new customers and be a market leader.
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