5 Steps To Squeeze More ROI From Your Marketing
Before placing your bets on a horse race, it would be nice to know which horse would win. Many CMOs today have a similar yearning when looking at the confusing and proliferating array of marketing channels. They’re not sure where to place their bets.
Marketing Mix Modeling (MMM) tries to take chance out of the game by measuring the relative effectiveness of channels, a critical capability for understanding marketing’s return on investment (MROI). But traditional MMM isn’t keeping up with the changes in the customer decision journey. For MMM to be effective, marketers need to move it beyond its traditional boundaries.
It’s worth the effort. We’ve seen ROI increase by 15 to 20 percent overall in companies that use enhanced MMM techniques to allocate marketing spend to channels that drive business growth. CMOs need to:
Move from “backcasting or reacting” to “forecasting” ~Look at the complete picture
~Understand where the payoff stops
~Factor in the value of your brands
~Get involved in the analysis