Natalie Myers

Improving ROI: 5 Insights

April 29th, 2009
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Return on investment is top of mind for marketers these days as most marketing efforts come under the scrutiny of ROI justification.

Here are a few insights gleaned from an interview with Jim Lenskold, President of the Lenskold Group, about how to improve and optimize the measurement of marketing ROI:

1. The biggest challenge in improving marketing ROI is removing cultural barriers and instilling a sense of discipline in planning and assessing the financial contribution of marketing.

2. Marketing strategies that do a better job targeting higher value, higher converting segments have the greatest impact on ROI.

3. Measurements that use market testing and modeling are most conclusive and often under-utilized when measuring marketing effectiveness.

4. Choosing measurements that provide insight about how to improve future initiatives is the most important step in generating greater performance and profitability.

5. Using revenue instead of profits as the return is a basic financial error that marketers make. It must be corrected for accurate ROI calculations and credibility with executives.

Natalie Myers

About Natalie Myers

Natalie Myers writes for MarketingSherpa’s Great Minds and Content Biz newsletters. She covers a broad array of topics for Great Minds, regularly interviewing thought leaders and experienced marketers about innovative or highly successful marketing strategies. For Content Biz she focuses specifically on online subscriptions models, including anything you pay for to read, listen to, watch, rent (as in Software as a Service models), etc.

She writes blog posts about topics relating to her beats, including useful information from interviews that doesn’t make it into an article.

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  1. May 10th, 2009 at 02:41 | #1

    Thanks for the post Natalie
    Great to have a reminder on ROI as one of the key things we need to keep in mind

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