Prove Your Marketing Is Paying Off
Tips on obtaining an ROI on your marketing efforts.
- By M.H. McIntosh
- September 01, 2006
Your boss wants to see evidence that the money and resources invested
in the company's marketing activities are really paying off. Don't sweat.
The good news is that senior managers don't care about individual campaign
results, they just want to know what the return is on the whole marketing
budget. It is surprisingly easy to prove that marketing is contributing
to your company's bottom line. Here's how.
Show the Relationship Between Your Marketing and
Start by looking for sales and revenue that can be linked to marketing
activities. Simply compare lists of new customers or invoices to companies
or people in your marketing database and look for matches. You don't have
to find every sale that resulted from your marketing activities. Sometimes
it only takes one big sale to justify a campaign.
If sales haven't closed yet, count the number of qualified leads and
use estimated conversion rates and average sales sizes to quickly determine
the sales potential of those leads. Or look at the forecasted sales in
the company's CRM system and compare them to the database of prospects,
inquiries or qualified leads.
You can also send "Did you buy?" surveys to inquirers and qualified
leads, using their answers to show the prospects being targeted by your
marketing are buying from you or the competition. Ask if they bought,
and if so, from whom. Ask why and how much they spent. If your sample
size is large enough, you can also use the answers you receive to estimate
the number of sales and the amount of revenue that are represented by
all the inquiries and leads you've generated.
How Much Did You Save?
Just give it some thought and you'll probably come up with a list of things
you've done to save the company money or time. For example:
- Amount saved in printing and postage after cleaning the mailing list
or delivering the company newsletter by e-mail.
- Amount saved by offering electronic versions of literature.
- Time and money saved by automating the capture of Web forms and eliminating
some manual data entry.
Show Other Ways Your Marketing Is More Effective
This can range from showing how many more prospects you reached
with your marketing messages to indicating the improvements that have
been made in cost per impression, cost per inquiry, cost per attendee
or cost per qualified lead.
List All the Marketing Projects Your Marketing
Marketers often don't think about their own productivity when justifying
the money the company invests in marketing. Unfortunately, people quickly
forget what happened last month or last quarter. Or they simply have no
idea what's involved in creating a mailing or designing a new Web site.
Pointing out the number of marketing projects and all the work steps
involved can be a real eye-opener to others who aren't aware.
Your Results May Vary, but Consider This ...
I recommend that you block out a couple of hours for all this every month
so you'll always have up-to-date results at your fingertips. If you're
pressed for time, use an intern or temp to do it for you.
A marketer I know at a midsize company recently reported to her management
that awareness of their company and products among target prospects more
than doubled, the cost per qualified lead delivered to sales by marketing
dropped by nearly 40 percent, 58 percent of the opportunities in the sales
pipeline were found first by marketing, and 48 percent of the sales closed
and 62 percent of the revenue during the past 12 months came from marketing-generated
The result? She got a bigger budget and there are no longer any doubts
about marketing's contribution to the company's success.
M.H. "Mac" McIntosh has been providing marketing and sales consulting services for Microsoft and many of its partners for more than seven years. More than 1,000 Microsoft Partners across the United States and Canada have attended his Marketing Boot Camps and Marketing for Leads (tm) live and Web seminars. You can contact Mac via www.sales-lead-experts.com.