Ever since my Management Accounting course at UVic last semester, I have been captivated with the numbers side of business … profitability, ROI, and incremental value. I have found that it’s important in marketing to not only consider why you’re doing something at the beginning (hello, RESEARCH), but also to examine it in regular increments to determine if it is worthwhile.
As an Analyst at Ideba, I have taken on this responsibility for one of my clients; in analyzing incremental value and ROI for all marketing initiatives we take on, on their behalf:
- Community and customer events
- Online web listing services
- Daily deal promotions
By tracking revenues that are a direct result of these initiatives and comparing them to incurred costs, we can check in with the client every month to either a) confirm the value in an initiative or, b) modify or remove an initiative that isn’t bringing value. This way, the client can rest assured that they are spending their marketing dollars efficiently and effectively, while still meeting their customers’ needs.
Of course, it’s always important to consider qualitative factors as well. For this client in particular, long-term customer loyalty, community awareness and overall reputation are as important as the revenue. We also look to measure the community impact to make sure they are putting their charitable efforts in the right place.
Here’s the Bottom Line: By coupling quantitative analysis with qualitative considerations for individual initiatives, we can be certain that we are bringing long-term value to the client and its customers on a regular, consistent basis.
Comments Welcome: How are you tracking success for your initiatives and decisions, albeit marketing or other?
– Michelle Clarke, Account Coordinator