An Effective Way to Prove Marketing ROI
This article provides a fair perspective, but fails to position the marketing leader or her function as a growth driver. I would offer the following approach to elevating the marketing function role.
Frame (this is a positioning effort) measurement around three areas:
- Financial ROI
- Organizational ROI
- Brand ROI
Succinctly explain the affect marketing is having on the financial worth of the company. In this case, we are assigning a dollar value to the unexplained goodwill all companies have.
Succinctly explain the affect marketing is having on employee engagement. In this case, we are measuring our ability to increase the percentage of employees who feel they clearly understand what their organization is trying to achieve, and why. (On average, about 37% get it. It is kind of challenging to make a promise real when only 1/3 of the team knows how to execute.)
Create an index that comparatively explains the affect marketing is having on Distinction. In this case, we are summarizing the degree to which all efforts to close sales, meet/exceed expectations, all while driving unique relevance within a defined category.
In combination, these three measures will enable the CMO to speak to the range of c-suite audiences on how his/her function is helping the organization win. People with titles like COO, CIO, CEO have little interest in tactics such as the number of inquiries, leads or RFPs. Success as a functional leader for an intangible discipline like marketing hinges on an ability to clarify how the functional actions are improving the health of the company, and what that state sets the organization up to achieve looking forward.