Digital Marketing Latest Commentary
Marketers have been using campaign return on investment (ROI), the comparison of how much money was spent on a promotion to the amount of money it generated, for decades to measure how successful an initiative actually was. In the age of digital marketing, with multiple tools available to track spending, lead sources, and site traffic, ROI became even easier to track. However, if you’re simply using ROI as the benchmark for campaign success, you’re only doing half of your job. Why is that? Classic ROI doesn’t take into account one very important fact – marketing campaigns, even digital ones, are leaky.
But don’t read that as a negative. Leaky campaigns mean that an initiative not only generates revenue immediately, but it also sets a prospect up for a follow-up campaign or additional offer. Classic ROI measures immediate conversions; it doesn’t look at the lead nurturing that was initiated or supported by that campaign.
So what does this mean to marketers? First off, it means that individual campaigns shouldn’t be treated as isolated events; instead, one campaign can positively affect the following one. Lead nurturing is essential to digital marketing success. For a great analogy, founder and managing principal Dennis Pombriant compares marketing strategy to a baseball batting order – you string your strong batters together, keeping the pitcher from intentionally walking one batter to reach a weaker hitter. This strategy not only ensures your overall marketing program’s success, but the presence of that strong batter waiting in the wings also gives that first strong batter more chances while at the plate. The batting order affects the game strategy in more ways than one. Campaign ROI only measures the first batter’s efforts; it doesn’t take into account that the second batter on deck is also assisting that first player’s at bat.