Marketing ROI Is Dead – Really I’m not Kidding
- AUTHOR Bonnie Crater
- March 19, 2013
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Traditional Marketing ROI is dead. This sad and poorly tracked metric for B2B marketers has got to go.
Why do I make this seemingly bold suggestion? First is the deal attribution problem — the return or deal value is most often attributed to a single campaign. But in the world of B2B marketing with 5-10 touches per closed deal, which campaign is the lucky one to get the credit? Should it be the first touch or the last touch or something in between? Second, many companies use the Salesforce standard where the deal value is attributed to all contributing campaigns. In this case, the total deal dollar amount is assigned to each campaign resulting in double, triple and quadruple revenue assignment. Clearly Marketing ROI cannot be a good metric.
Welcome Campaign Influence.
Campaign Influence is a way to attribute revenue and calculate a return on investment for marketing. In the world of Campaign Influence, the total deal value is split among the contributing campaigns. This makes a lot more sense than trying to pick out the most important campaign or giving all the campaigns the same revenue credit. With Campaign Influence, marketers can look at their business goals and determine how to weight campaigns by a variety of factors. Certain types of campaigns, time of response in the sales cycle, first touch, last touch or tipping point campaign are all examples of weighting factors.