21 Apr Three Keys to Full-Funnel ROI Measurement
Nielsen published its Global Annual Marketing Report earlier this month. According to the report, only 54% of marketers from companies across the globe believe they can measure ROI down the entire sales funnel. Marketers are confident that they can determine the ROI for segments of the funnel, particularly in the final stages, but they struggle to follow top-of-funnel marketing initiatives through the funnel to generate a holistic return on marketing investment (ROMI). How can marketers measure determine the full-funnel ROI?
Measure Brand Equity
First, marketing teams must show the value of brand marketing to their organization. Marketers must show the C-suite that ROI is measurable for brand-building initiatives so that the company values both brand and performance marketing. To do this, companies need to invest in a brand equity machine that tracks brand health and imagery. According to Nielsen’s research, marketing initiatives drive 10 – 35 percent of a brand’s total equity. Companies must measure it! For some companies, it can be the difference between a positive and a negative ROI.
Second, marketing and sales functions must agree on what the critical KPIs are for the business, and how to measure them. Marketing and sales teams must communicate regularly and break down data silos so that they can coordinate their actions. Otherwise, marketing and sales teams will not know how their functions impact one another. Cross-functional teamwork is critical to mapping the customer journey and measuring full-funnel ROI.
Derive Insights from Full-Funnel ROI
Third, marketers must connect the data gathered at each funnel stage to marketing activities. The reason you measure ANYTHING is to gain insight and answer a business question. Measure with purpose! Marketers must be able to gather and interpret data so that they engage in data-driven decision-making. Marketing doesn’t have to be a guessing game. By measuring success at all stages of the funnel and connecting insights to operations, marketers build a well-oiled marketing machine.
Don’t just measure the simple things. Be prepared to spend money. There is no such thing as a free lunch. Just because it’s hard or expensive doesn’t mean it shouldn’t be done. It’s critical to get the right information to answer the big business questions.
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