It's not just because every investment is scrutinized more than once, it is because no business can successfully drive growth without understanding the linkage between the top line revenue and marketing.
While measuring ROI for marketing it is always important to keep certain points in mind:
1. Your marketing ROI directly affects the short and long term performance of your business, so marketers must make certain that both short term and long term results are considered.
2. ROI is more than just some new fangled jargon. When done properly it can help the marketing team make significantly better decisions and improve revenue, profit and market share.
3. Determining your ROI in marketing isn't free. As much as we would like to have a magic bullet to determine success, we need to invest in measuring the success in marketing. Just as we invest in six sigma quality control processes in our manufacturing so must we invest in the determination of our success and effectiveness in our marketing activities.
4. Getting the data is critical to determining your marketing ROI to help marketers make better decisions. We need to make certain that we are measuring the right things not just the easy things.
Once you have been able to measure and calculate your marketing ROI, you'll be better able to protect your budgets and become a key component of corporate success.
