LaughlinOutLoud

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.

A few weeks ago, the internet was abuzz with facts and figures breathlessly reporting the newly-calculated value of a Facebook fan. Two of the most talked about studies had very different findings about how to value brand communities.

A study by Vitrue assessed the average Facebook fan at $3.60 – based on a model of media impressions. On the other end of the spectrum, a study by Syncapse featured a more complex approach and a much higher valuation – $136.38.

Both are good examples that your outputs are only as good as your inputs.

The studies’ flaws have been well-documented elsewhere. And I won’t spend time on the methodology of either except to say this: The value of your fans – whoever they are, online or off – depends mostly on how you connect with them. How you inspire them. How you turn them on. And that is a key element that is missing from both formulas.

ROI models struggle with the qualitative. It’s always been my soapbox with average ROI’s of media. They can’t take into account the value of the creative. Good creative moves mountains. Mediocre creative doesn’t.

We live in an Age Of Engagement. Leaving that out of a formula to determine the value of your brand community is the equivalent of Einstein settling on e=c².

For every action, there is an equal and opposite reaction.
– Newton’s Third Law of Motion

Forward motion, then, comes from seemingly opposing forces. In the business world, opposing forces can mean conflict. Multiple points-of-view, different approaches, opposing priorities. All coming together, hopefully, in the name of progress and a common goal.

A few weeks ago, I saw futurist David Zach speak at the Wisconsin Governor’s Conference on Tourism. One of his topics was the “battle” between design and measurement. I see these forces collide on a daily basis.

Depending on who you talk to, each is the future of marketing and is only increasing in importance. The reality is that both perspectives are right. Design and measurement are both the future. Design and measurement are only increasing in importance. Both are essential. And Zach provided an interesting framework within which to think about this friction when he pointed us to a memorable quote from 1949’s The Third Man, starring Orson Wells…

“In Italy for 30 years under the Borgias they had warfare, terror, murder, and bloodshed, but they produced Michelangelo, Leonardo da Vinci, and the Renaissance. In Switzerland they had brotherly love – they had 500 years of democracy and peace, and what did that produce? The cuckoo clock.”

Conflict doesn’t have to be bad. It can even be “worth it.” Seemingly opposing forces coming together can create great gains.

Our ability to track the results of marketing campaigns is becoming more and more powerful. We can show progress, chart growth and demonstrate return on investment. But reporting on past results tells only a fraction of the story.

Because tracking isnʼt really about looking backwards. Thatʼs part of it, sure. But itʼs only part. If weʼre satisfied to look backwards in an effort to prove or to justify our efforts, we are leaving money on the table.

Tracking and reporting teach us. We learn from the numbers. The findings. The insights. And we make adjustments. We optimize. We make better, more informed decisions. So that the numbers get better the next time a tracking report lands on our desk. And then the process begins anew.

We shouldnʼt think about tracking in terms of looking backwards. Or even looking at today vs. yesterday. We should always look through the lens of “forward.” How can what weʼve done in the past make us better in the future?