Measuring the Return on Investment
Some of the oldest and most complex questions in the marketing and sales industry are:What kind of return will I receive on my investment?
How will I know if the design costs, direct mail pieces, and branding initiatives I'm putting in place will make my company more money?
These are questions that we get asked again and again. Primarily because clients want to know what they're getting for their money. I mean, who doesn't, right? Marketing firms, advertising agencies and design shops everywhere struggle with the common misconception that they put together "pretty pictures" that don't have any real strategic thought behind them. While that could be true some of the time (because of the few bad apples out there), it's not the norm.
The reason I bring this up is because this all ties in to the questions surrounding your return on investment. Really, the first thing you should ask yourself is "What kind of price tag am I willing to place on my company's brand?" This will ultimately determine how you move forward in developing (or not developing) a solid marketing strategy.
The next thing you have to ask yourself is "What type of processes am I going to implement within my business to help quantify how my marketing initiatives are affecting it?" This is very important because it helps you establish a foundation. Once this is done, you will be able to make comparisons about your business before and after any new marketing initiatives. Remember - if you don't have a way to track the effectiveness of your marketing materials, you'll never know what the return on your investment is...
Which brings us back to the price tag you place on your company. What is it worth for you to get the right people managing your brand? Do you want pretty pictures or do you want well thought out advertising campaigns. Do you want to hire a "web guy" or do you want a web developer who can interpret your brand strategy and deploy it online. Some might say we're talking semantics, but we believe it's at the core of higher ROI and how brand management and marketing can make an impact on your business - for the better.
Do you find yourself asking these same questions? Let us know in the comments...or send us an email at ideas@2monsters.com.
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