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How do you estimate the return on marketing investment (ROMI)?


New marketing concept are not always applied on the field, and leads out of marketings activities are not always deepenned by sales. Especially when it comes to digitally generated leads. Are those marketing concepts unaccurate or do we have outdated sales practices?


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Opened by Dimitri Schmitz, Solution Manager, bpost
Dec 5, 2012.



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Jonathan Elder ROI Manager, Splice Marketing Ltd
Feb 19, 2013

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Ideally, you can get an exact measurement of the outcomes of your marketing, but for this you need two things:
1) Ability to track the new customers. Depending on the marketing plan, you may be able to tag the visitors and get very accurate data. If not, you many need to use approximations, such as increase in branded search, or an increase in 'direct' traffic.
2) Ability to measure benefits. Easy for e-commerce, but for lead generation sites, or where the target is something less instantly measurable like brand awareness, you need to decide a measurable metric, like £0.10 per new visitor, or £1.00 for each visitor that reads more than 5 pages, and use this to calculate ROI. In themselves, these calculations are not that useful, as there are too many assumption, but they can give you a really good way to compare different marketing exercises.

I've written a blog post on this recently - you can read it here.
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