Guide to measuring return on investment (ROI)
Discover what ROI is, how to use it to your advantage and how it can and should be applied to the marketing choices we make as we plan.
Who is this guide for?
- Time-poor marketers who need a simple guide to measuring return on investment across multiple parts of the marketing mix
- Marketers who want to refresh their knowledge of the basics with handy links to additional resources where you can find out more
- New marketing managers who want to put effective systems in place to measure the effectiveness of your campaigns and overall strategy
- Marketers whose budgets are under threat but feel ill-equipped to make a case for investment
- Marketers who need to show return on investment and engagement from social and digital marketing campaigns
- Marketers who think measuring ROI is important but aren’t sure how to do it
- Marketers who need to turn data into actionable insight
What is ROI?
Return on investment (ROI) is the primary measurement of marketing effectiveness. As our marketing efforts are under increased scrutiny and our marketing budgets are under threat more than ever before we need to be able to make the case for what we do – both in terms of financial return and engagement. Measuring ROI is the best tool to help us. It can and should be applied to the marketing choices we make as we plan but we need to understand what it is, how to use it to our advantage, its limitations and what it can do for us.
Measuring marketing ROI is about more than justifying budgets. It allows your organisation to move forward, develop your audiences and deliver both more income and deeper engagement with greater efficiency.
How can metrics help? Here are four simple reasons:
- Metrics reduce arguments based on opinion
- Metrics give you answers about what really works
- Metrics show you where you’re strong (and weak)
- Metrics allow you to test anything you want