You’ve made the decision to start measuring MROI, you’ve overcome the blockers mentioned in our last blog but what’s next and how to get started with the actual measuring?
To help you, we have broken the process down into three main components of MROI - the tactics, the data and the action. Some of the steps you will be comfortable with i.e the tactics and others will need more collaboration and work. The point is, in order to gain meaningful MROI you need to commit to all three stages - that’s the hard part!
The deployment of tactical marketing is the area recruitment businesses will most likely be familiar with. It’s the one you’re probably most comfortable with regarding marketing activity. It includes tactical elements such as sending an email, posting on social media, paying for an advert, or sponsorships.
Such activity is integral for a brand to be seen by the right audiences at the right time. However as Sun Tzu, a Chinese military general, strategist, philosopher, observed more than two thousand years ago: “Tactics without strategy is the noise before defeat.” Which means marketing activity done in isolation without thorough research, a sound strategy and objectives is only ever going to produce limited results. It may get some engagement but nothing measurable that is going to impress the Board and could even reinforce their view that marketing is nothing more than the ‘colouring in’ department.
Print advertising provides a great example of this. Taking out a full-page advert in a trade magazine is a great way to attract attention and connect your brand to bought-in audiences. However, print is notoriously difficult to prove regarding ROI, so opting to be part of an email marketing campaign for subscribers could be more beneficial. Let’s face it; advertisers are keen to secure your cash and have a firm understanding of their customers’ appetite for data, so they will have ready-made digital packages that enable you to measure your investment effectively. Plus, in the recruitment industry, many publications are now digitised as standard.
Many companies fall at this hurdle, they are unsure about what data they should be collecting. How to collect it and then what to do with it. Let’s break it down…
When it comes to the type of data you should be collecting, you need both quantitative and qualitative.
The digital marketing revolution has driven marketers to favour quantitative data as the default way to report on ROI. It means that, despite its value, qualitative data is now massively overlooked.
Undoubtedly, the data gleaned from website analytics, social media platforms and email marketing tools is extremely useful at a tactical level. The numbers rarely lie. If most of your candidate registrations can be traced back to Instagram advertising, you know you’re onto a winner and can more easily track the value of each candidate versus investment.
Qualitative data also holds significant value, but it’s much harder to track and measure. It would be wonderful to have each customer tell you directly that they found you by searching “best recruitment companies” on Google or that they saw a video on LinkedIn but that’s unlikely without human action and intervention. That’s why businesses must adopt an always-on marketing approach when it comes to listening and tracking user feedback.
However, this extends further than identifying the right data to gather; it requires investment in the processes, systems and infrastructure you need to capture the right data and intelligence to effectively report on MROI. For recruiters, this largely comes down to investing in the right CRM and ensuring the right people have access to it.
A quick Google search on ‘Recruitment CRMs’ brings up over 26,900,000 results, so there are plenty to choose from. How to choose one is content for another blog, however, we would recommend that you choose one that integrates easily with your existing tech stack where possible.
Here lies a common barrier to MROI. As mentioned in our previous blog [link to blog] too many sales teams or senior managers still ring fence CRM systems when access should also be given to the marketing team. Your CRM data will empower your marketers to report on attribution, segment their audience, deliver personalised content, and more effectively design and manage marketing campaigns.
Another point to make here is that a CRM is only as good as the data it holds. According to Salesforce 90% of data in the average CRM is incomplete, 74% is outdated and 25% are duplicates.
With the right data and the skills to analyse it, marketers can build deeper relationships with customers, reach audiences with the right messages at the right time and, ultimately, convert prospects into customers.
Every discovery feeds directly back into marketing tactics, with the process continuing throughout the entire lifecycle of the business.
In conclusion, for your marketing investment to generate a known return, you must have the business infrastructure and business processes in place to effectively measure ROI.
It will cost your business to invest in the infrastructure, tech configuration and reporting functionality to enable ROI to be measured. There will also be a change in how your entire business captures and reports data. However, failing to report and capture information business-wide will not enable the marketing team to show the fullest ROI possible.
Without MROI it’s unlikely you’ll ever be able to make the ongoing improvements required to ensure you remain ahead of the curve and stand out from the competition. Organisations need to work as one ecosystem to achieve this – sales, operations and marketing! That’s how the most successful businesses are working. Trust us.
Want to know more? Read our latest guide Yes Marketing Can Make You Money, Time to Start Measuring It.
How can businesses integrate MROI measurements with other key business metrics to provide a holistic view of performance and guide strategic decisions?
Integrating Marketing Return on Investment (MROI) with other key business metrics involves establishing a comprehensive analytics framework that aligns marketing objectives with broader business goals. This can be achieved by identifying core performance indicators across departments and ensuring that marketing efforts are directly linked to these indicators. For example, if customer retention rates are a primary focus for the business, MROI measurements should not only assess the immediate financial return of marketing campaigns but also their impact on customer loyalty and lifetime value. By using integrated analytics platforms, businesses can create dashboards that combine data from various sources, providing a holistic view of how marketing investments contribute to overall business performance and strategic objectives.
What specific strategies can businesses employ to improve the quality of their data and ensure it provides accurate insights for MROI analysis?
Businesses can improve data quality by implementing regular data cleaning processes, such as removing duplicates, correcting inaccuracies, and updating outdated information. Establishing clear data entry standards and training staff on these protocols can prevent many common data quality issues. Additionally, leveraging automation and AI-driven tools can help in identifying and rectifying data inconsistencies. Engaging in continuous data quality management practices ensures that the data used for MROI analysis is reliable, providing a solid foundation for making informed marketing and business decisions.
How to track and evaluate MROI over the long term, especially as market conditions and business strategies evolve?
This involves setting up systems for continuous data collection and analysis, allowing for the regular review of marketing strategies against set objectives. It's important to establish benchmarks and periodically reassess these benchmarks as business goals evolve. Utilising advanced analytics and predictive modelling can also aid in forecasting future MROI based on historical data, enabling businesses to anticipate changes and adjust strategies accordingly. Regularly updating stakeholders on MROI progress and integrating MROI insights into strategic planning processes ensure that marketing remains aligned with long-term business objectives, driving sustainable growth and profitability.