B2B Word on the Street: ROMI
This Weeks B2B Word on the Street is: ROMI (Return On Marketing Investment)
Who wouldn’t continue to invest in a stock that consistently provided a positive payback? Every sales presentation a financial advisor has ever given me that was related to an investment opportunity included a good deal of data to consider. Historical performance, projected returns over time and comparables all helped provide some proof along with the promises. Not every choice has been a winner, I’m sorry to say, but at least I didn’t go in with blinders on.
Marketing is all about the numbers, too. Whether its for special projects, quarterly, or annual planning, budgets shouldn’t be arbitrary. They should be strategically based on a reasonable percentage of sales and reachable, measurable objectives that assure your marketing efforts are viewed as a renewable investment and not an exhaustible expense.
Wikipedia provides the following definition:
“Return on Marketing Investment (ROMI) and Marketing ROI are defined as the optimization of marketing spend for the short and long term in support of the brand strategy by building a market model using valid, objective marketing metrics. Improving ROMI leads to improved marketing effectiveness, increased revenue, profit and market share for the same amount of marketing spend.”
You may not have the ideal amount of data on hand to make your marketing investment a bulletproof, guaranteed success, but that is no excuse for not basing your budget on an accurate assessment of the opportunities and challenges you face. Of course, anyone operating in a large corporate environment isn’t free to operate as a brash entrepreneur, so you must carefully calculate your risk. That’s where MLT Creative can be of help.
We have a history of helping our clients win new business, win awards and get promotions. We grow our business by helping you grow yours. Using a quote-as-we-go approach, we are passionate about each projects success. Our experience proves this is the best way to earn more business through additional work, from special projects to larger-scale marketing programs and campaigns.
In b2b marketing, it pays to be bullish with your budget.