How Campaign Influence makes Campaign ROI relevant

Salesforce natively supports a feature called Campaign ROI, which is a way to look at campaign performance in terms of the dollars spent on the campaign. The nice thing about this is byweighted campaign influence in salesforce accounting for the cost of a campaign you are normalizing your performance based on spend. This allows you to answer the question, did my campaign generate significant revenue because it is the largest part of my budget or because it is comparatively more efficient.

This is how Campaign ROI is calculated in Salesforce by default:

1.     ROI, which is expressed as a percentage, is calculated as the net gain (Total Value Won Opportunities – Actual Cost) / the Actual Cost.

2.     Total Value Won Opportunities is the calculated amount of all closed or won opportunities where the campaign is the Primary Campaign Source on the opportunity.

This makes you wonder, if I’m attributing all of the revenue for an opportunity to the Primary Campaign Source and there is more than one campaign that may have had an impact on that deal closing how do we determine which campaign should get credit?

Organizations have different processes for addressing this issue, in some cases people try and find the earliest campaign, other people arbitrarily choose based on ‘gut feel’ or more commonly ‘commission packages’, but the reality is that in a multi-touch environment no one campaign should get all the credit for a deal.

The fact that multiple touches are involved in a deal presents two major issues with looking at any form of campaign ROI. First, how do you fairly distribute attribution across the multiple touches such that impact of a given campaign is accurately represented? Second, how do you measure the interdependent nature of campaigns across a customer’s journey?

This has caused a lot of marketers to abandon the ROI metric entirely, however, with influence we can now solve the multi-touch attribution issue and use the same concept to understand relative performance normalized against spending.

Influence ROI solves the first issue, and allows you to make useful decisions so long as you keep the second issue in mind. You may not be able to shift your marketing budget entirely over to your highest ROI campaigns because they may not perform as well in a vacuum, but you can start to see how campaigns of specific types and targets perform as a group and how individual campaigns perform relative to that group. That insight can be leveraged to tweak and iterate your campaign strategies to slowly optimize your spending.

If you want to learn a little more about campaign influence in Salesforce check out this short, on-demand webinar.

Luke Duncan

About Luke Duncan

Luke is a Salesforce.com Certified Administrator and Customer Success Manager at Full Circle Insights. Previously he worked Nuvation Research Inc integrating IT and Marketing tools.