Never is a marketing consultant more ill at ease than when a client asks “How much revenue will this tactic generate?” Or, “If I run this ad campaign, how many inquiries will it generate?” CEOs and CFOs ask these questions because they want to know what the return will be. I’ve often written about the importance of ROS (return on strategy) over ROI (return on investment) which tends to measure tactics. The reality is, all marketers and their agents want to know their marketing efforts pay off. But just as tech start-ups get away, quarter after quarter, without monetization plans, marketers keep trotting out the old lazy axiom “I know half my advertising is working, I just don’t know which half” and muddle on.
That’s why we should be measuring strategy, not tactics. Strategy crosses channels and tactics. Strategy informs tactics. Sure tactics can be strong or weak, but graded on strategy delivery creates a third dimension for analysis.
How well does this package design convey the brand strategy? How well does this retail experience deliver the brand promise? How convincing is this video at making a prospect believe the brand claim? Grading our marketing work not simply by action but by brand conviction is the way toward marketing monetization. Measuring awareness, first mention or a porous tagline is not measuring strategy. Nor is measuring time on page.
When measures become endemic to your business and not generic, you will know you are on the right path. Peace!