Marketing ROI Workshop


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This workshop was created to provide a framework for thinking about and measuring marketing investment.

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Marketing ROI Workshop

  1. 1. Marketing ROI Workshop g pSample Materials
  2. 2. Workshop ObjectivesThe goal of this workshop is to p g p provide a framework and approach to thinking pp gabout measuring marketing investment by: Discussing the overall goals of marketing measurement programs Exploring the pros/cons of measurement systems and specific metrics Using various case studies and exercises to practice measurement identification and selection 2
  3. 3. Setting the StageAn introductory discussion of measurement… y How should college admissions be decided? How should marketers decide between programs? Is marketing an art or science? – Why does this matter? ROI of college education? g Is ROI a puzzle or a mystery? INTRODUCTORY DISCUSSION CUSTOMIZED TO CLIENT INDUSTRY 3
  4. 4. What is Marketing?Marketing – the Original AMA Definition (1935) “The performance of business activities that direct the flow of goods and services from producers to consumers.”Marketing – the New AMA Definition (2004) “A set of processes for creating, communicating and delivering value to customers ” customers.A Better Definition? Anticipating the future needs and wants of a target market and learning how to deliver value and how best to communicate what will be relevant about that value to the target. g 4
  5. 5. Exercise – Benefits and Obstacles to Measurement Why Measure? Why Not Measure?         Why Are Measurement Programs Necessary?     5
  6. 6. Time Frame MattersWhat is the timeframe under consideration for measurement? Prospective/planning Mid stream Mid-stream Retrospective Short-term vs. longer-term 6
  7. 7. Team Exercise (for Business Unit Teams) Team Assignment: – P Pros/cons of “The Ultimate Q / f “Th Ulti t Question” ti ” – Is customer satisfaction the right focal point? – One measure (for marcom and other marketing) vs. two, or more – Same measure for each Business Unit? STRUCTURE AND QUESTIONS FOR EXERCISE CUSTOMIZED FOR CLIENTS 7
  8. 8. What are the characteristics of a good metric? 8
  9. 9. Considerations in Use of MetricsIssues to Consider When Leveraging Metrics Marketing metrics separate from business metrics – What is unique contribution of marketing? Measurement related to multiple audiences – Intermediaries – End user(s)/segments – Sales channel(s)/people – Influencers f Matching marketing spend to business priorities CUSTOMIZED TO CLIENT INDUSTRY/SALES DYNAMICS 9
  10. 10. Types of Measures Used for ROI Across DifferentIndustries Share price  Share price Direct-to-sales  Revenues versus spending Purchase patterns  Share of wallet Direct-to-norm (or competitor)  Clicks Revenue change vs. budget change  Awareness Referrals  Attitudes (esp. leadership) Customer “asset” value  Reach  Acquisition, development and/or retention  Loyalty/retention Brand equity  Purchase patterns Awareness  Referrals R f l Attitudes toward purchase Attitudes toward company/brand  Reasons for sales Tests/experimental design  Market share Internal survey  Spending vs. norms, competitors Internal leadership survey  Results vs. norms, competitors Sales  Brand equity Savings (e.g., decreased cost of sales)  Trust equity Leads/inquiries  Customer asset Redemptions  Revenues 10
  11. 11. The Marketing Conversion FunnelMarketing is ultimately about influencing target audience behavior Target Audience Conversion Funnel Typical Questions Awareness • Where are the key bottlenecks? • What are causing these Consideration bottlenecks? Preference • How do we invest to overcome these bottlenecks? Choice Loyalty Recommendation eco e dat o 11
  12. 12. Metric Segments Products/Services Current Prospects Current Customers gets Prospects Targ Intermediaries CUSTOMIZED TO CLIENT INDUSTRY/SALES DYNAMICS 12
  13. 13. Team Exercise: Using the MethodologyCase Study: BMW Films How would you measure the ROI?• BMW car is a “star” emphasizing its star driving performance without mentioning the brand• Link to contemporary actors (Clive Owen, Madonna Owen Madonna, Don Cheadle) and directors (John Woo, Ang Lee) 13
  14. 14. How the Methodology Works 100 Prospects 100 Current ClientsTarget Audience Conversion Funnel Assumptions to be Assumptions to be proven proven Awareness 40 80 Consideration 20 60 50% of aware 75% of aware Preference 15 50 75% of familiar 87% of familiar Choice 5 40 33% of accepting 80% of accepting Loyalty 1 10 20% of preference 25% of preference Recommendation -- 10 All of L f Loyal l CUSTOMIZED TO CLIENT INDUSTRY/SALES DYNAMICS 14
  15. 15. Key Success Factors Gain consensus “Generally right” Describe reason(s) and uses for each metric Memorialize the rationale and then the learning 15