In an ideal world, the financial return and the ability of all forms of communication to influence the public would be precisely calculated, and deciding on a marketing strategy would be simple. In reality, there are multiple—and generally imperfect—processes for measuring most established communication solutions. Nothing comes close to a definitive metric for social media and other emerging communication channels, and no single metric can assess the effectiveness of all expenses incurred. However, we must find a way to track progress and evaluate the results achieved. Ask the question, “What metrics should guide our decisions?” and we’ll answer.
Even though there is no single way to measure ROI across different channels, marketers should move toward an integrated strategy for comparing and analyzing returns across a variety of platforms and complementary solutions.
Metrics are rarely perfect. However, the volume of available data should make it possible to identify metrics and analytical opportunities that leverage shared concepts, are understood and trusted by management, provide evidence of progress, and lay the groundwork for more sophisticated approaches to marketing ROI analysis in the future.
The marketing landscape continues to change rapidly, and it can seem like an almost impossible task to keep up with and respond to the processes and changes identified. It is truly difficult to emphasize the magnitude of the current change or challenge. However, we believe that it is the professionals and managers who have sound answers to some basic questions in this context who are best equipped to fight for marketing effectiveness and win the battle for growth.