Focus on profitability - nothing else matters
Wentworth, NH (Vocus) October 9, 2009
Marketing metrics consultant Joseph Raymond Roy today published a primer that explains how to set up a system to measure the return on investment (ROI) of marketing, advertising and public relations programs.
The primer, published as a 40-page eBook titled "Marketing Metrics and ROI: How to Set Up a Measurement System That Can Double Your Profitability (Small Business Edition)," is available for download free of charge. An edition targeted at large companies will be published later this year.
" 'Marketing Metrics and ROI' explains the basics of the basics of measurement," said Joseph Raymond Roy, author of the eBook. "My goal was to help marketers overcome the misconception that measurement is only a matter of selecting the right tracking techniques. In fact, tracking is only one of four steps: Define the results you seek. Assess the dollar value of these results. Track your results. Adjust your program."
The Four Steps of Marketing Measurement
The eBook explains, in simple language, the four steps of marketing measurement:
Define the specific results you are seeking. For example, "increase revenue" is too general. Instead, be specific; for example, sign up new customers, or sell more units per year to existing customers, or increase the price of each unit, or retain customers longer, or induce lapsed customers to return. Each of these goals may require a different tactic. Remember, you can't measure what you can't define.
Assess the dollar value of each result. Most marketers fail at this. They underestimate their ROI, by overlooking customer lifetime value, or by overlooking marketing tactics (such speeches) that are generating profits, or by overlooking types of profits (such as sales of higher-margin products or services), or by making errors in calculation. The eBook explains all this and more - including how to answer the age-old question, "What is a sales lead worth?"
Track your results. When it comes to tracking results, a great many marketers are pessimistic and unimaginative. They look at a marketing tactic and assume, "There's no way to track this." In fact, it is possible to track any marketing tactic. If you think you can't track it, you haven't defined it clearly. The eBook describes a dozen tracking techniques as examples. But more important, it explains how to think about techniques and find the right techniques for you.
Adjust your program. Shift resources from less-profitable tactics to more-profitable tactics. Most businesses overlook this (the eBook explains why). Adjusting your program can be a competitive edge for your business. Once you have set up a measurement system, you can adjust it every year, constantly increasing the profitability of your marketing program. Many companies find that they have doubled their marketing ROI over the course of one or two years.
"Focus on profitability - nothing else matters," said Mr. Roy. "It's all well and good to count clips, impressions, target rating points, click-throughs, Twitter followers and Facebook fans. But these metrics do not measure profitability. You need to go beyond them and find out which tactics in your marketing program deliver the highest ROI."
To Download the eBook
To download the eBook, click on http://www.marketing-metrics-made-simple.com/metrics-primer.html. There is no charge, and no registration is required. The author-copyright holder has granted permission to copy and republish the eBook, provided attribution is given.
About Joseph Raymond Roy
Joe Roy is a marketing consultant and freelance copywriter. During the last 16 years he has taught people in marketing, advertising and public relations how to measure and increase the profitability of their programs. His clients have included companies of all sizes, from tiny medical clinics to global manufacturers. Visit his web site, Marketing Metrics Made Simple.
Janice L. Brown, Janice Brown & Associates, Inc.
jbrown (at) janicebrown (dot) com
Joe Roy, Joe Roy & Company
joeroy (at) joeroy (dot) com