measuring the resilts of your marketing efforts

April 16, 2009

Measuring the Results of Your Marketing Efforts

Introduction

•  Kevin A. Barnes, Creatonomy

Agenda

•  Why Measure Marketing? •  Marketing Measurement Hierarchy •  What is Marketing ROI? •  Marketing Metrics in Action - Examples:

• Email Marketing Campaign Metrics • Social Media Metrics

•  Why Now? •  Resources •  Questions

The Problem

“I know half of my advertising doesn’t work. The problem is, I don’t know which half.”

John Wanamaker

If You Remember One Thing …

Every time you start a marketing initiative, ask yourself: 1.  What am I trying to accomplish?

2.  How will I know whether I’ve accomplished it?

Why Bother??

Why Bother??

Why Bother??

Marketing is scaleable / flexible

Marketing Measurement Hierarchy

Tier Measure Goal 1 ROI Maximize Profits

2 Conversion Rate Maximize Customer #s

Cost Per Sale Minimize Marketing Expense

3 Cost Per Impression Track Performance

Awareness Track Performance

Source: James D. Lenskold, Marketing Management, May/June 2002

What is Marketing ROI?

ROI = Return On Investment

The Basic ROI Formula

Return ( Gross Margin - Marketing Investment ) Investment Marketing Investment ROI = =

The Basic ROI Formula

Return ( Gross Margin - Marketing Investment ) Investment Marketing Investment

( $150,000 - $100,000 ) $100,000

ROI = =

=

The Basic ROI Formula

Return ( Gross Margin - Marketing Investment ) Investment Marketing Investment

( $150,000 - $100,000 ) $50,000 $100,000 $100,000

ROI = =

=

The Basic ROI Formula

Return ( Gross Margin - Marketing Investment ) Investment Marketing Investment

( $150,000 - $100,000 ) $50,000 $100,000 $100,000

ROI = =

= = 50%

It’s equations all the way down!

Examples of Specific Metrics

•  Ad Awareness •  Gross Ratings Points (GRPs) •  Web Page Unique Visitors

•  Clickthrough Rate •  # Blog Posts about your Brand •  Sales / Purchases

Example: Email Marketing Campaign

Example: Email Marketing Campaign

Example: Social Media Campaign

Example: Social Media Campaign

Example: Social Media Metrics

Fundamental Metric Source Influence Time on Site Web Analytics: Google,

Omniture, Web Trends Engagement Comments/Posts Google, Omniture

Diggs, bookmarks DoubleClick, Digg Podcast Listens Feedburner

Loyalty Blog Posts on Brand BlogPulse Recommendations Cymfony, Techrigy Tweets, etc. Cymfony, Techrigy

Is Heath Care Marketing Unique?

The time is now …

This is the time for marketing metrics: 1.  Easier

2.  Less expensive 3.  More accurate

If You Remember One Thing …

Every time you start a marketing initiative, ask yourself: 1.  What am I trying to accomplish?

2.  How will I know whether I’ve accomplished it?

Resources

•  Marketing Metrics, Paul W. Farris et. al., 2008

•  Marketing Calculator, Guy R. Powell, 2008

•  Marketing ROI, James D. Lenskold, 2003

Questions?

For More Information

•  Kevin A. Barnes •  kevin@creatonomy.com •  414.223.7500 ex. 124

•  Twitter.com/kevinabarnes

Thank You!