Marketing is transforming as gracefully (not always prettily or painlessly) as possible into embracing technology and automation to support and improve its effectiveness and efficiency. Marketing execs have gotten really good at measuring campaign ROI by using tools from companies such as Marketo, Aprimo, HubSpot, Eloqua, and Salesforce.com. Job well done. It’s been a long road.
But just when you have dried the last dish, someone has put a whole new load in the sink for you to deal with. You see, even though you have mastered campaign ROI, your CMO is now being asked by the board of directors and the office of finance, “What is marketing’s impact on our (overall) business?” It’s important to understand that the boardroom sees campaign ROI as only one variable in the bigger formula of Enterprise Marketing ROI.
So what is Enterprise Marketing ROI (EMROI) and how can you get it done? EMROI means taking a look at all of the numbers that relate to your marketing efforts’ health, not just email open rates, MQLs, acquisition, retention, churn rate, likes, etc. EMROI is the incremental difference in revenue that your company would not normally have received had it not invested in marketing. EMROI is the “lift” or the “bump” in revenue that your company receives by investing in marketing, as well as the overall “health” of the organization, as defined by comparing your numbers to industry benchmarks (and with all other things– external variables such as weather, price variances, economy, fuel costs, etc.– being equal).
Calculating EMROI takes into account ALL of the data that you collect about your prospects, market, and customers along the buyer’s journey. It includes data from marketing automation tools, sales force automation, external market share data, and data from finance. It is then analyzed to give you marketing’s specific contribution to your business’s overall bottom line. Once you have this data and the calculations, you can slice and dice it any way you want to get a better understanding of how your business is performing and marketing’s contribution (or lack thereof) to the effort from a number of perspectives.
Looking at marketing ROI from an enterprise perspective is one more step toward boosting marketing’s value within an organization and helping to improve business performance for a competitive advantage.