Return On Investment (ROI) is no longer an option in marketing. Although marketing is not an exact science, it is getting there. Marketers these days need to show what ROI they are getting for the money they spend on their marketing campaigns.
To make the most of your marketing spend, you need to know how to measure its results. Is the amount of Twitter followers you’ve got of any importance to your company? Or should you instead measure how many leads are coming through Twitter to establish how much effort should be placed on this channel compared to others?
The ROI of any marketing campaign ultimately comes in the form of increased sales. There are however challenges that come into this, such as the time period. Most marketing campaigns are long-term, multiple touch processes that will lead to sales growth over time. Another challenge is that not all marketing activities are focused on generating sales.
It is worth figuring out what to keep track of, before starting the obsess over numbers. Are you actually measuring the right thing?
When you measure the wrong thing, you get the wrong thing. Perhaps you can be precise in your measurement, but precision is not significance.