Our marketing metrics system is not for everyone. You need a reason to track and monitor the performance of your marketing channels and campaigns.
As the CEO, you are responsible for the growth, profitability and success of the company. Marketing is a critical investment and you want a return that matches your expectations and forecasts.
When using our Marketing Metrics System you will need to know revenues, costs and performance that result from marketing efforts.
Your responsibility as the CFO is to make sure that money is invested wisely and results in a profit. Ideally, you would like to know which marketing investments were made and what return was generated on those investments. You will monitor Return on Investment (ROI) . In our system, ROI is Profit divided by all Costs and it is expressed as a percentage.
If the correct data is collected, our System can track ROI by product line, by location and by marketing channel or campaign.
As the CMO, you are responsible for the company’s Return on Marketing Investment (ROMI).
The calculation for ROMI is Revenue minus Marketing Costs divided by Marketing Costs. ROMI is often expressed as a multiple such as $7:1 which is stated as “We generated $7 in Revenue for every dollar spent on marketing.”
The beauty of our system is that we can calculate any of the standard metrics used in sales and marketing. Currently we can track these metrics:
- Conversion Rates like Click-Through-Rate, Take Rate and others
- Cost per Impression, Lead, Offer or Sale
- Return on Marketing Investment (ROMI)
In future modules, we will be able to track the following metrics
- Customer Lifetime Value
- Retention Rate and Churn
- Return on Investment (ROI)
Your responsibility as the CIO is to be sure that the investments in IT are a competitive advantage for the company (and running smoothly). In recent years, marketing campaigns have become increasingly more integrated with IT. Examples include Customer Relationship Management systems (CRM), websites, eCommerce, online advertising, blogging and social media. Oh and we shouldn’t forget that the volume of data generated by all these systems that has grown exponentially making the interface between IT and marketing even more dependent and complex.
In its simplest form, our Marketing Metrics system is a mini data warehouse. We collect data which we call Measures from a variety of sources. We then run a variety of calculations which we call Metrics. From there we can select the KPIs that are critical to the performance of the marketing channels and campaigns.