The ROI of Marketing and High School Math
Posted Jul. 30, 2010 by Casey Flanagan
Filed under: Ideas, Marketing, Social Media, Tracking
We, as marketers, are accountable for value. Measured. Assumed. Attributed. Demonstrable. Everything we do should have a basis in moving needles. Two weeks ago, I wrote about brand community value. Asking “What’s the ROI of marketing?” seems to be the equivalent of breathing.
What’s the ROI of social media? Of TV? Of PR? Of a successful customer service program? I once heard someone observe that one of the cruel ironies of advertising is the number of people who chose the profession as a way to avoid math. On a related note, I have an urgent announcement to college juniors struggling with Accounting. Advertising is no longer as clear a career path.
Which brings me back to math. High school math, to be specific. One of my most clear memories of Algebra is as applicable a lesson to the ROI of marketing as I’ve heard. The more variables you know, the easier the equation.
The same goes for the ROI of your marketing program. What’s the ROI of social media? It depends on a number of factors, including but not limited to: What’s the value of a visitor to your website? What’s the value of a qualified lead? What’s the value of positive customer experience? What about the lack of negative buzz?
When you understand the value of your variables, the ROI equation gets a lot easier. As you walk slowly to the chalkboard, start by figuring out what you already know.
I’ve always thought the phrase “math problem” was a misnomer. The only math problem I know of is if you think you don’t like math. Math is a tool that can help prove your worth.
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