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As an owner you know you should invest in your business to grow and be profitable, but the true "marketing spend" is always so evasive. How do you measure and reward the right marketing activities? How do you know your gaining traction? Most importantly, are you tracking the results that are most critical to your company profitability? This session highlights the activities that really count and the ones that don’t. You will learn: • Marketing Result Indicators (MRI) and what they tell you • Leading and lagging Indicators • The real value of your Marketing Return On Investment (MROI)
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Presented by
Ginger Clay
March 11, 2013
Result Indicators to Help you
Measure Your Marketing Spend!
April 11, 2023
Today’s Presentation
• What are marketing metrics and why do they matter?
• How doesn’t your company make money?• How does your company make money?• Which measurements matter at the C-level?• Free advice
Measuring the Marketing Spend2
April 11, 2023 Measuring the Marketing Spend3
The Investment Challenge
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DATA“In God we trust; all others bring data.”
--W. Edwards Deming
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How doesn’t your business make money?
• Myth #1: We make money when we sell something.
Measuring theMarketing Spend
Source: “Found Money: Simple Strategies for Uncovering Hidden Profits & Cash Flow in Your Business.” Steve Wilkinhoff, 2009.
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• Myth #2: We make money when we attract new customers
Measuring the Marketing Spend
How doesn’t your business make money?
Source: “Found Money: Simple Strategies for Uncovering Hidden Profits & Cash Flow in Your Business.” Steve Wilkinhoff, 2009.
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• Myth #3: You make money when you come up with a great marketing campaign.
Measuring the Marketing Spend
How doesn’t your business make money?
Source: “Found Money: Simple Strategies for Uncovering Hidden Profits & Cash Flow in Your Business.” Steve Wilkinhoff, 2009.
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How does your company make money?
• Positive Net Profit
• Adequate Return on Marketing Investment
• Strong Positive Cash Flow
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What matters to me?
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Change in Revenue$ Value Change in Revenue
% Change in Revenue
C-level Performance Metrics
• Starting Rev: $50k• Made $9k on campaign• Ending Rev: $50k + $9k gain
• $59,000-$50,000 = $9,000
$9k Positive change in Rev.
$59k-$50k/50k x 100 = 18% change in Revenue
Goal:• Increase new
client sales by 50%
• Budget: $2,500• LinkedIn Ad
Campaign to drive enrollment to a webinar.
April 11, 2023 Measuring the Marketing Spend11
Profit on the CampaignRevenue generated from campaign X – (minus)
Expenses and cost related to executing campaign X (equals) = Profit
Rev-Cost= Profit
$9,000-$3,295.20= $5704.20 1st month
C-level Performance Metrics
• Sold 3 systems• Average Sales Price: $3k • $50 webinar software• $200 man hours-implementation
• LinkedIn Ad: $2.60 per click/652 click-
thrus = $1,695.20• Commissions= $1,350 (15%
commission)• Total Cost= $3,295.20
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Return on Marketing Investment
C-level Performance Metrics
Profit on CampaignX / by the marketing cost for CampaignX
ROMI Factor Goal: 3-4
RESULTS:
$5704.20 (P)/ $3295.20 (C) = ROMI factor of 1.7
PREDICTION
$12,000-2,500=$7,950/ $2,500 = ROMI factor of 3.8 For every dollar spent on this campaign, an additional
$3.80 contributes to the company’s bottom line.
Goal:• Increase new client
sales by 50%• Sell 4 systems• $3k Average
cost/system• Budget: $2,500
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Free Advice
1. More is not better. It’s just more.
2. Measure performance versus goals.
3. Study trends over time.
4. Make it easy for everyone to digest.
5. Lather, Rinse and Repeat.XMeasure
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Making Marketing Profitable
1. Marketing Strategy (VMO)
2. Marketing Impossible Packages
3. Marketing Influencers Workshops
Measuring the Marketing Spend
[email protected] l 760.646.6808
"Marketing takes a day to
learn. Unfortunately, it takes a lifetime
to master.“
- Philip Kotler , US Marketing
Management Thinker
