When Was the Last Time You Stripped Down Your Marketing Spend?
For many years I have provided organizations with communication audits that analyze their strategic positioning to help them optimize their marketing spend. Tools including best practice of their industry’s leaders, market research analytic tools, and at times complex statistical analysis are ways I have used to determine how to improve their go-to-market campaigns. A couple years ago we applied these tools to a Fortune 500 corporation and found more than 65 percent of their brands in the late maturity stage. A fact that left their company exposed to many negative consequences and a condition their divisional management was largely unaware.
But if you are running a small or medium size business, you don’t have the luxury or the time to invest in a multi-month analysis of your strategic marketing. Every senior executive with P/L responsibility has many areas they are responsible for on a daily basis and often that includes HR, PR, CRM, IT, and Business Development. Not to mention the analysis of your monthly accounting reports and cash-flow management needs.
Needless to say quicker is better, so in order to impact your business here is one way to quickly analyze your strategic marketing and its Return On Marketing Investment (ROMI) using a simple revenue calculator:
Revenue Calculator: Revenue achieved from a marketing campaign divided by the total marketing cost.
Example: Recently, a manufacturing company achieved $48,000 Revenue with a marketing cost of $4,500 with a full distribution of 7,500 recipients including a three-wave E-Marketing Program coupled with a call-to-action Print Mailing. This program was supported by several sales representatives who were synchronized to the program for quick and effective follow-up with prospects. Given these factors the company achieved a 10.6 return on its marketing investment. Clearly racking up a major success for its efforts.
Understanding the Revenue Calculator gives you the perfect and easy-to-use tool to analyze all of your existing marketing campaigns and any you might be planning. A solid ROMI factor is 3x so anything above this point is a significant success. Apply this calculator to your marketing spend and let me know how you are doing.
Tom Wants To Hear Your Branding Issues:
Tom Marin, Managing Partner of MarketCues, wants to hear from you! Follow MarketCues on Twitter for branding and social media tips, as well as the latest trends. Tom also welcomes e-mails, new LinkedIn connections, calls to (407) 330-7708 or visit www.marketcues.com. How can he help solve your branding issues?