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Generating and Measuring a Return on Marketing Investment
A Metrics-based Marketing Approach
Most people have a hard time looking at marketing as anything but a dreaded cost of doing business. There's a move afoot, however, to change the way we look at marketing from a cost, to an investment.
It’s a little difficult to make that leap in logic, but let me lay it out for you.
The days of considering a campaign a success when you win one client from a campaign that cost as much as the client is worth are coming to an end. Sophisticated marketers, like JDM and others, are bringing the idea of marketing as an investment to bear for their clients.
Here’s how it works (the short version):
By running trackable campaigns for years and aggregating the performance data, marketers are able to determine, with accuracy, conversion rates and the probability of success for a given campaign type for a given client.
By calculating the net lifetime value of a single new customer, marketers are able to design cost-effective ways at arriving at a campaign goal that will generate a positive return on investment.
To hear the long version of how marketing can be an investment for your business, contacts us regarding a Marketing Needs Assessment.
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