Download all roads lead to romi

DELUXE MARKETING SERVICES
ALL ROADS LEAD TO ROMI
8-15
%
BOOST IN REVENUE,
PROFIT & MARKET
SHARE
Does your financial institution still view marketing as a “cost,” rather than an
investment? The question goes far beyond mere semantics. The cost of your
marketing campaigns is only part of the equation when you’re calculating the
value of your marketing efforts. Approach marketing costs as an investment,
and the other part of the equation – returns – comes into clearer focus.
It’s vital for marketers to demonstrate value in terms of return on marketing
investment (ROMI) in order to keep internal decision-makers engaged in, and
supportive of, marketing initiatives. Successful marketers know all roads lead
to ROMI.
The Distinction Between ROMI and ROI
Return on investment is a useful barometer for tallying the value and success
of a range of business targets, from sales to product development. For those
targets, it’s a straightforward calculation: profit (or revenue) divided by cost
equals ROI.
But is it the most useful tool for measuring the value of marketing initiatives?
Many marketers would argue that it is not, particularly in the financial
industry. Because the success of marketing campaigns rides on both tangible
and intangible factors, as well as short-term and long-term goals, calculating
the value of an initiative is a complex process. For this reason, it’s more
valuable to think in terms of ROMI, rather than ROI.
ROMI compares revenue gained against marketing investment. Some
marketers will also consider brand awareness in their ROMI metrics, and
digital marketers further spice up the mix by adding in dwell time – the
length of time customers spend interacting with a specific initiative. These
additives are all intended to help marketers better quantify intangibles such
as consumer engagement and brand loyalty.
Beyond Mere Justification
Some marketers view measuring ROMI as little more than justifying their
department’s existence to their financial institution’s decision-makers.
© DELUXE ENTERPRISE OPERATIONS, LLC. ALL RIGHTS RESERVED.
2
DELUXE MARKETING SERVICES
ALL ROADS LEAD TO ROMI
To be sure, it’s important to demonstrate results through ROMI metrics. But
the usefulness of measuring ROMI goes far beyond proving the value of your
marketing efforts.
One commonly quoted statistic from ROMI expert Gary R. Powell indicates
that by using data and analytics, marketers can boost revenue, profit, and
market share between 8% to 15%, without increasing marketing costs.
ROMI helps you differentiate what works and what doesn’t, so you can
channel resources into initiatives with the greatest potential for success and
impact.
Arriving at Your ROMI Destination
Now that you understand the importance of ROMI, how do you get there?
1
Define what you are measuring.
It’s important to define what you’re measuring and why. Establishing
goals allows you to better estimate ROI at the outset of a campaign.
Financial marketers surveyed by The Financial Brand say their top
metrics include deposit and/or loan volume, customer growth, depth
of relationship, share of wallet, market share and customer retention.
Whatever your benchmarks, it’s important to structure marketing
initiatives to facilitate measurement.
WANT MORE
INFORMATION ABOUT
DELUXE MARKETING
SERVICES?
2
SEARCH
fi.deluxe.com/acquire/
acquisition-programs/
CALL
877.214.2513
As you planning your objectives and formulating strategies, identify
opportunities for measurement. Whenever possible, build in tangibles
that can be more readily measured and that will underscore the overall
big-picture success of intangibles. Establish a reporting schedule
that allows you to keep your successes top-of-mind for organization
decision-makers and affords you the most up-to-date information
Contact us today.
EMAIL
DeluxeFinancialServices
@deluxe.com
Build measurement into objectives and strategies.
when you evolve your strategies to address fluctuating market
3
challenges and opportunities.
View every ROMI result as valuable.
Even if it falls short of your goal, a less-than-stellar showing can help
you identify a campaign that needs tweaking or replacing. A postmortem on a failed campaign can help you make decisions toward
initiatives that will have greater success.
Remember, your ultimate goal when measuring ROMI is not to prove the
value of your marketing initiatives, but to constantly improve it.
Listen. Solve. Deliver.
© DELUXE ENTERPRISE OPERATIONS, LLC. ALL RIGHTS RESERVED.