Brief to-do list for marketers that are interested to take their ROMI modeling to the next level.
ROMI. This little acronym has been trending on a global scale, demonstrating that it is one of the most important calculations when it comes to business.
What does ROMI mean?
ROMI stands for Return On Marketing Investement. It allows smooth communication workflow between departments, especially marketing and finance. For large companies that are focusing on full optimization, or professionals that want to utilize cutting-edge management tools to properly measure ROMI (or better known as marketing ROI), it would be suggested to use an advanced analytics ROMI modelling platform, if you don’t already have one. Having one of these bad babies at your disposal just might make reporting and executive decision making easier.
Here are a few tips on how to make sure your ROMI is steering in the right direction:
Calculating your marketing spend
There are plenty of factors that play a key role in calculating your marketing spend from how much revenue is produced each financial period to the size of the company. It is all relative and should be budgeted accordingly. Discussing with your accountant or CFO to figure out an estimated revenue is definitely a good place to start along with the size of your company. Is your business relatively young?
Does your company have established brand equity in the market? From following your budget, you can then track and measure your ROMI systematically with a airtight strategy or platform that works continuously.
Choosing channels for your marketing spend
Adjusting your marketing budget paves the way for better maintenance of your ROMI and which leads to higher accuracy. When you’re a business that is quickly growing, it is important to identify and prioritise your channels of communication clearly while remaining within the limits of your marketing spend.
Utilising a ROMI modelling platform would combine your channels into a neatly fitting package; presenting your media types and where your investments are going.
Comparing with your competitors
Another effective method of calculating your ROMI is by comparing your efficiency with your competitors’ marketing strategies. Investigating your competitor’s public presence can really give you insight on what needs improving. Benchmark your top competitors and their websites, likes on social media, and engagements. Compare your content and marketing campaigns with theirs. This kind of analysis aspires productivity and improvement from your end.
Your marketing strategy should be divided into two perceptive impacts: short-term and long-term impacts. The impact of ROMI with short-term results should optimally steer you in the right direction. Throughout a fixed period, patterns may emerge that would suggest a change, but the thing with short-term impacts is that they do not permeate long lasting effects.
Allow short-term ROMI to lead you towards appropriate marketing channels and maintain focus on upcoming forecasts that are part of your long-term marketing strategy. Based on time passing and the stagnant change, your ROMI would suggest if you’re reaching your target audience or not, in which case it would be advised to be tentative to which channels bring more revenue than the rest.
Utilising advanced SaaS analytics to gather your online and offline data would benefit your goals maximum efficiency and continuous productivity throughout the duration of your company’s lifetime. These little tips will ease the stress of decision making with sound numbers that and also bring your marketing and finance team closer together.