Welcome to part 2 of 6 regarding the six main problems facing the marketing industry in 2017. Today we will be focusing on proving the ROI (return on investment) of your marketing activities. What is currently being done? Why it is not working? How to fix it?
If you missed part 1 or want to review click here.
Graph acquired from State in inbound 2017 market research report
Proving the ROI of Your Marketing Activities
Managing and proving return on investment can been a constant struggle for marketers year after year. Many companies big and small want proven results that their marketing dollars were spent on the right promotions and campaigns. They want tangible results like impressions and # of people who became leads for the company.
For marketers, ROI has been a vital tool in order to understand the effectiveness of each particular marketing campaign, piece of content, etc. Proving ROI often goes hand-in-hand with making an argument to increase budget: No ROI tracking, no demonstrable ROI. No ROI, no budget.
How to improve ROI?
Proving your promotions and campaigns produced viable sales can be tricky. However, there are many ways to do so besides showing views or eyeballs.
- Use data to prove new ROI: Everyone knows that data-driven marketing is a must in this day and age. While upper-funnel activities like brand and awareness are still somewhat difficult to measure, the areas of customer acquisition, budget ROI and lead generation have industry-standard metrics. These key performance indicators are absolutely critical to how your managers measure your success and how the company measures marketing success.
According to the American Marketing Association, “You must create incremental value beyond what was existing. Take a growth hacker view of marketing, and think about where marketing is either under-serving customers or where marketing value is being under-reported.”
For many companies, marketing impact on existing customer revenue is often under-served and under-reported because marketing is focused on generating new customers. But existing customers are by far the cheapest revenue you’ll be able to earn.
- Combine CRM and marketing software: Creating and proving links between marketing and sales results can be difficult. It is one of the most time-consuming and resource burning activities that marketers and businesses of all sizes go through. Best way to do so is with a service-level agreement (SLA). An SLA allows marketers to
HubSpot’s 2015 State of Inbound Marketing report highlighted three compelling advantages for companies that maintain their SLA:
- Companies with an active SLA are 34% more likely to experience greater year-over-year ROI than those companies that aren’t.
- They’re 21% more likely to get greater budget allocations.
- They’re 31% more likely to be hiring additional salespeople to meet demand.
According to HubSpot’s 2017 State of Inbound Marketing report:
By implementing these tactics into your campaigns, proving your ROI is that much easier. Knowing where your marketing efforts and sales intercede will allow you to see what is working and what isn’t and allow you to make changes accordanly.
Thank you for reading!
Feel free to comment with your thoughts and ideas! I always welcome new ideas.