The editors at Direct Marketing News recently asked 13 industry insiders for their perspective on how marketers can demonstrate a return on their marketing investments to inform a new report on marketing ROI. Matthew Scott, SVP of Business Development & Strategy at Crowdtap, offered up his insight to the prompt below.
DMNews: Marketers are continually challenged to prove a return on their marketing investments. What’s one way that marketers can demonstrate ROI in 2015 & beyond?
While most marketers are laser-focused on the ROI of their media investment, this focus on media yield often overlooks the ultimate value of the relationships they have with their consumers. Social media has spurred consumers to seek out a two-way dialogue with brands, and yet the ad industry has only scratched the surface when it comes to unlocking the potential of a true “people-powered” future.
We say that the voice of the customer is important, and yet we still view (and measure) consumers as impressions. This one-dimensional categorization of the people who – beyond purchasing your products – want to collaborate with your brand on product innovation and marketing is limiting in that it fails to consider how a strong brand-consumer relationship can drive powerful metrics such as loyalty and advocacy.
Beyond relying on established measurement rubrics, marketers should also track the overall brand health of their communities by noting improvements in metrics such as brand awareness, favorability and Net Promoter Score. These types of lifts can bolster loyalty and spark word-of-mouth impact, which undoubtedly impact the bottom line in a world where people trust peer-to-peer recommendations and social media above traditional advertising formats.
Get more insights and your free copy of DMNews’ Marketing ROI eBook here.