Return on Marketing Investment (ROMI)
Planning for marketing profit to justify and optimise your marketing spend?This programme focuses on understanding marketing metrics and their overlap with finance. More fittingly, we focus on why we need a combination of both financial and marketing metrics. A fairly new metric, Return on Marketing Investment (ROMI), is about justifying and innovating better campaigns to optimise your marketing "spend" or rather marketing "investment".A key part of our process of success at creating performance-driven marketing organisations is getting agreement between Marketing and the rest of the leadership team on how marketing performance should be measured. This is a critical step in ensuring you are focused on the right data and analytics. Organisations today are dealing with increasing market pressure and competition, and an exploding amount of data. The ability to transform data into actionable business insights that can be used for improving both marketing effectiveness and efficiency is a central challenge and a critical capability for marketers.ROMI is about measuring a campaign's performance, and an attempt to measure the aggregated effectiveness and efficiency of the marketing organisation to achieve corporate objectives.The key concepts and ideas covered:
Who should attend:Top management – VP, Directors, Division Heads, Senior Managers and other senior executives from:
- Financial Metrics vs. Marketing Metrics: Two case studies.
- Why we measure: Costing out alternative marketing spends (i.e. increase return or decrease investment) case study.
- What we measure:
a) Brand Asset: Brand Value (Financial worth - i.e., Interbrand Sampson); b) Psychological Value (Awareness, Attitude, Usage - i.e. Nielsen, Aztec, TNS, Y&R, Millward Brown); and
c) Customer Asset: Satisfaction, Loyalty, Behaviour (recency, frequency, monetary amount, Customer Lifetime Value (CLV), Discounted Cash Flows).
- How we measure actual and expected outcomes:
a) Intermediate outcomes (attitudinal, purchase intent, brand equity); and
b) Final Outcomes (Sales, GP%, profit, ROI, Reduce uncertainty of cash flow, Enhance cash flow, customer retention).
- Challenges: Validity of data, politics in your organisation.
- The ROMI debate: Art and Science (use to "Guide, don't Prescribe").
- Mastering advertising, promotions, events, and market communication techniques to ensure ROI for your company.
Facilitator:Ian is a registered Chartered Marketer (CM), the highest professional marketing qualification recognised in Europe. He also has an MSc (cum laude) in The Management of Technology & Innovation. Prior to starting Markitects Consulting in 2005, his last corporate position was marketing and sales director for the global zipper giant, YKK. He is currently a strategic consultant and facilitator and is regularly voted as the best speaker at conferences.Discounts of 20% for 5 or more attendees.
- Marketing and Sales
- Brand Management/Communication
- Strategic Marketing
- Direct Marketing
- Interactive Marketing
- Product Management
- Channel Management
- Event Marketing
- Brand Communications
- Database Marketing
- Crisis Communications/Crisis Management
- Market Research department