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Book Review: Marketing ROI

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marketing roiWhile I think Marketing ROI is definitely worth the read for senior marketers and newbies alike, it tends to comes more from the paradigm that marketing and advertising folk buy media and launch ad campaigns without much regard for the actual return on the money invested.  In the offline world this has historically been the case but it’s improving.  It’s not that marketers are ignorant to measuring the effects of their investments but sometimes the data points are hard to capture.  Hence this blog and my choice of professions to focus on digital where it’s much easier to measure performance and ROI.

Here are some key takeaways:
○ When calculating go/no go decisions based on ROI don’t take sunk costs into consideration
○ Future value is key and often understated when trying to measure ROI – I’ve often felt that if you know acquisitioned costs and lifetime value then that’s all you need as a business professional – pay someone else to watch all of the other numbers but if you’re on the pulse of those 2 you’ll have all you need to make the right decisions
○ Calculate a value/vulnerability rating for your customer segments and adjust service levels accordingly – sorry but not all customers are created equal and the high value ones should get the red carpet treatment
○ To most accurately capture ICV (incremental customer value) understand which short term activities for a specific segment lead to likely future behaviors – back to life time value with a touch of segmentation!
○ Measure the incremental value of each marketing investment at the smallest possible level
○ Categorize your marketing investments – e.g. Reliable Investments, Emerging Investments, High-potential Investments and Innovation Investments

Grab a copy of Marketing ROI : The Path to Campaign, Customer, and Corporate Profitability for yourself from!


Written by Greg M

August 9, 2009 at 7:14 pm

Posted in Books

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