ROI based Campaign Management

Typically, Return On Investment or ROI has been one of the most widely used terms in marketing, but with the advent and increasing popularity of digital marketing, it has gained renewed significance. ROI is a simple campaign analysis that measures the success of either a holistic or campaign based marketing efforts. Generally, brands calculate marketing ROI by the increase in revenue or sales growth, directly impacted by the campaign. A good ROI is a reflection of a fruitful marketing investment and thus is instrumental in planning and budgeting future marketing spends.

Typically, ROI calculations seem to be relatively simple and can by derived by dividing the gains of the marketing investment by the marketing cost. When the resulting ratio or percentage is a positive one, that translates into a positive ROI, vs if it’s a negative one, it reflects a loss of the investment. This is also known as the Revenue to cost ratio and a typical 5:1 is considered to be a reflection of a successful marketing investment. Of course the target ratio for is representative and will vary based on aspects like any incremental cost incurred to execute that campaign (i.e. the variable costs), industry specific trends, investment cost structures, time frame, and duration of campaign etc.

However, with emerging technology-enabled tools, marketing communication has undergone a sea change and so has the process of calculating marketing ROI. In the growing age of the Big Data, the significance of ROI has been redefined and evolved. Simultaneously, the global pandemic and the economic crisis, businesses are now keen on tightening the budgets and economise spends, even as they find ways to survive and possibly expand their business. Under such circumstances, there is a heightened need for more efficient and result driven investments for marketing, putting the spotlight on ROI-driven business decisions.

Today, ROI as a concept is moving away from being merely a tool that analyses the success of a campaign based on revenue generation, to an insight driven, decision enabling tool that is helping campaign consultants, marketers, and brands to also craft future campaigns. In other words, marketers today seek to understand not only the actual revenue impact but also dive deep into which program/ campaign, which platform and what strategy was instrumental in driving those results. And the wide array of modern marketing analytics tools, such as BI/reporting platforms, marketing automation, tracking pixels/tags, and attribution models, lead generation, etc., is all adding up, enhancing the ways to measure marketing effectiveness and its contribution to sales. Further, digital platforms, like websites, social media, and mobile apps, etc., come with integrated API’s that offer analytic reporting, which can be combined to obtain a central repository to derive in-depth ROI based campaign analysis and insights. Modern campaign Management consultants are leveraging these tools effectively, so as to help brands reap the benefits of not just successful sales campaigns but of overall profits.

Generally, ROI from marketing campaigns is mapped at the strategy stage, and in a closed – loop fashion, with an approach to drive efficient campaign measurement and optimisation. As marketers become increasingly accountable for generating revenues the ROI based campaign analysis becomes a constant and integral part of a successful marketing strategy. An efficient strategy that is designed around the already agreed upon ROI goals, can be a strong strategic enabler for the entire marketing team, helping them gain more trust of the sales staff, earn greater budgets, and become instrumental in driving greater business impact.

Key Deliverables:

  1. Campaign Performance: Through insight driven approach to performance, I undertake analysis and ROI calculations for standalone or a holistic marketing campaign, including event – based campaign performance (like product and service launches, brand campaigns etc.) which has a quantitative metrics of sales growth, average transaction, or ticket value enhancement, and also the Cost per action campaign analysis.
  2. Channel Performance: Performance of the channels in which the campaign runs is also very relevant in terms of total new acquisitions of customers, total revenue growth etc. and evaluating in terms of incremental sales conversion, brand awareness and channel reach. As a campaign management consultant I can work on identifying and analysing the efficacy of a particular marketing channel/ tool – like social media, content marketing, SEO driven digital marketing or e-mailer campaigns, to ensure optimisation of investment and the best ROI for the campaign.
  3. Business Impact: Finally, leveraging data driven marketing analytics, I offer insights into the overall business impact and the recommendations that lead to creating impactful future campaigns. Supporting a decision focused approach to campaign management, we can measure short and long term business impact, in terms of revenue growth, growth in market share and customer lifetime value, which are of paramount importance based on the agreed upon metrics.