The ROI of Marketing

Favorites Dec 14, 2011 2 Comments

The ROI of Marketing

By Ruth Michel

The ROI of Marketing

Your Investment, “Guaranteed”

We’ve all witnessed the layoffs and cutbacks. The slashes and slumps. Somewhere along the way, security became a lottery. Or at least it feels that way to the average American.

Even if you’ve been thriving lately, you’d probably agree that the word “guaranteed” is becoming rare. But what if there were an investment that was practically guaranteed?

News flash – there is! It takes more effort than a scratch card, but marketing (done well) has a stellar return on investment.

Invest in yourself by mastering the art of relationship building, marketing and advertising. A reasonable goal is to exceed an 11% return, which has been the average performance of the market over the last 50 years. Yet skillful marketing makes that number puny with returns as high as 100%, 200% or even 500%.

Let’s do a little math. Say you invested $500 a month and earned 11% on your money for 20 years. That would be a rosy $432,000.

In marketing, a 30% return on your investment is pretty shabby. But that shabby 30% earned on a $500 monthly investment for 20 years yields a whopping $7.5 million.

Are you interested now?

Improve Your Marketing

For a minute, consider the business you work for. Does it excel at raising awareness of its products? Gaining trust? Convincing customers that its products are the best option? It will probably be strong in certain areas but lacking in others.

Once you identify where improvement is needed, evaluate the best solutions. Here is an example of a company that had a marketing program in place but sought to make it as successful as possible.

Cox Communications New England’s direct mail campaign needed an appeal. What would inspire customers better than gasoline rebates? It was sure to catch the consumer’s attention. As the manager of Marketing Acquisition and Retention later shared, this was exactly the element needed to take their marketing campaign to the next level.

Our Strategy was to implement a 4 mail phase plan whereby we dropped 4 waves of mail over a 3 month period. We decided to use the Grand Incentives kicker on the last 2 drops of mail. Our results showed an 89% increase in bundle sales over the previous 2 drops. We were very excited about the results and look forward to using this program again in our 4th quarter campaigns.

Since cable, Internet and telephone customers are paying monthly bills, Cox’s marketing success meant a real increase in income.

As a new year approaches, determine to search out informative books, blogs, and webinars that will turn you into a marketing machine! Identify people and companies such as Grand Incentives that will equip you with the right tools.

2 Responses to “The ROI of Marketing”

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  2. Reply The Cure for Marketing vs. Sales Showdowns | Grand Incentives Blog says:

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