C-Suite’s Top 5 Marketing ROI Metrics

Earlier this year, I conducted a research study on Boardroom views regarding effective marketing ROI reporting. In order to find out which metrics are most effective in linking marketing performance to company profit, 108
Board members answered the following question:

How much do the following KPI’s tell you about marketing’s

Marketing ROI Reporting To The C-Suite

What is the most effective way to measure and report on marketing ROI? This may seem like a strange question. After all, the term ROI (return on investment) is an accounting term that is very clearly defined. Nevertheless, over the years, a good number of marketers have been ‘creative’ in applying ROI-methodologies to marketing. There are too many examples of marketers reporting non-monetary KPIs (performance-based) - or sometimes even plain marketing activities (activity-based) – under the ROI label. In other cases, the ‘ROI family’ is being extended with exotic non-monetary variations such as, for instance, ROO (return on objectives) or ROE (return on engagement).

Marketing ROI – Not Exactly Science?

There is continued discussion on whether marketing is an art or a science. The short-cut difference being that for marketing, as an art, it would be impossible to predict or measure commercial results. Whereas for marketing, as a science, it would be possible. The discussion is, however, an exercise in futility. After all, the question ‘is marketing an art or a science?’ presents a false dilemma.

To me, M.C. Escher’s work is a great metaphor for marketing. His work is as  much geometry (science) as it is art. Similarly, marketing isn’t either art or science. It is both!

The Difference Between Virtual and Vital Marketing – RU 4 Real?

As a marketer, you can only be one of two marketing types: the virtual marketing type or the vital marketing type. The difference lies in how you answer the question: RU 4 Real?  The ones that aren’t for real, are the virtual marketing types. By extension, the marketers that are for real are the vital marketing types.

To explain what this means (2b or not 2b 4 real), let me start by describing the virtual marketing type. Here follows the freedictionary.com definition of the word virtual:

vir·tu·al (vûrch-l) adj.

Social Media En De Alles-Of-Niets Valkuil

Desalniettemin begin ik mij af te vragen of sommigen de betekenis van social media niet schromelijk overdrijven. Alsof social media de panacee zijn voor alle marketing uitdagingen. Ik geef twee voorbeelden:

‘Harden’ Your Social Media Marketing ROI

‘Hard’ ROI is, of course, a flaming pleonasm. Why? Because there is no such thing as ‘soft’ ROI. ‘Soft’ ROI is an illusion. It’s like the mirage of a water-rich oasis in the middle of a scorching desert. All the ‘returns’ on engagement (roe), on objectives (roo), on interest, on influence together will never ever produce even an ounce of ROI. That’s because ROI means

How To Measure 360° Marketing ROI – Part 2: Value of Commercial Effectiveness

In part 2 of my blog post ‘How To Measure 360° Marketing ROI’, I elaborate a bit more on the practice of calculating Total Marketing Income. In part 1, I indicated that marketing cannot and should not measure its success directly based on sales revenue. This is because marketing usually doesn’t sell directly. Sales does. In determining Total Marketing Income, marketing should focus on how successful it has been in maximising the company’s commercial profitability. And marketing has three value drivers at hand to accomplish this:

Are Marketing & PR Converging?

In a recent discussion on The Association of Strategic Marketing (a LinkedIn group), the following statement was made:

[...] The convergence of marketing and PR – what are the implications? The emergence and rapid evolution of digital media channels is driving a convergence of marketing and public relations. I call it a paradigm shift.

How To Measure 360° Marketing ROI – Part 1: Marketing Value Drivers

After many attempts to let activity-based measurement and performance-based measurement pass for marketing ROI, a growing number of marketers are agreeing with the notion that only a truly value-based ROI will convince the Board and stakeholders of marketing’s commercial value. In my coming blog posts, I will present a methodology to measure 360° Marketing ROI. Here’s the seemingly simple formula:

Social Media: Are We Falling Into The All-Or-Nothing Trap?

Given that ‘Social Media’ is one of the most popular topics of discussion online and offline, I realize I may not make myself very popular with this question. So let me start by stating, for the record, that I am very excited about the many new opportunities that social media bring to marketers. Without social media, my company would never have been able to reach such a vast, yet targeted, audience in such a quick, direct and cost effective manner. Social media have made it a lot easier for me to be reached for promising and exciting business and partnership opportunities. And I can go on and on and on about its benefits.

Nevertheless, I begin to wonder whether some of us aren’t over-exaggerating the significance of social media.