Marketing ROI is clearly gaining support and funding from company executives. A company’s ability to put marketing ROI measurements and analysis into practice will increase efficiency, create competitive advantages and greatly enhance marketing’s credibility within the organization.
As reported in a recent survey by Lenskold Group, a vast majority of companies measuring financial returns indicate that profits can increase if measurements are put in place to capture marketing’s contribution to sales.
Although the gap in funding of analytics and measurements continues to close, few have achieved leadership in this emerging discipline, but the trend is clearly on the upswing:
Other findings from the Lenskold study that I found interesting:
* Marketers have improved their ability to measure marketing ROI, including an increase in those able to link brand measures to incremental sales and profits.
* The early adopters achieving success in their measurements of financial returns are still in the minority (16%), but there is a solid base of the early majority (42%) who consider their ability to be somewhat short of where it could be.
* Marketers with the discipline to measure financial returns are using measurement methodologies (pre-post analysis, market testing, marketing mix modeling, and quantitative research) at much higher rates than those not measuring financial returns.
* The profit potential that can come from improved marketing measurements continues to be significant and is critical for strengthening marketing’s role in retaining and growing marketing ROI.
* Along with the increased use of financial metrics, non-marketing executives have increased confidence that marketing investments are profitable. Marketing credibility clearly grows with increased accountability.
At WebsiteBiz, we constantly reinforce the value of measurement and analytics in all of our campaigns. We understand that marketing ROI is important.
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