Establishing a corporate-wide methodology to quantify ROI for various advertising elements
Situation
A major international telecom company – concerned that marketing spend was outpacing revenue growth – wanted to optimize current contact strategies, and improve corporate knowledge on how to measure return on investment of their various advertising elements.
Approach
Optimizing marketing spending is about where to invest, but just as importantly, where to stop spending. Through a data-driven assessment that isolated one variable at a time, we quantified the effectiveness of each marketing element and then applied the marketing spend to determine the return on investment. In addition, we helped socialize this measurement approach by educating the current staff on our methodology and assisted in the hiring process for additional in-house skill sets.
Solution
Historical data combined with in-market tests allowed us to quantify the number of customers gained by market versus advertising. We also studied the interaction of various marketing elements, including both traditional and social vehicles. From here, we prioritized components of the contact strategy and thereby recommended the most effective mix of marketing elements to maximize return.
Results
We created the foundation to improve the profitability of our client’s marketing investments, and helped to structurally enhance employees’ ability to measure and reallocate marketing spend based on new findings. This resulted in optimizing the client’s advertising budget by cutting spending by 10% and growing revenue by more than 5%.