Marketing performance can no longer be demonstrated solely by metrics such as open rate, click throughs, and impressions. Marketers must focus on their contribution to the bottom line, company-wide: enterprise marketing ROI, or EMROI.
So what is EMROI, and how do you calculate it? EMROI moves beyond campaign ROI, which is increasingly essential because it can be difficult to accurately measure the dollar worth of certain marketing channels. While many marketers feel confident calculating their ROI on email, for example, many are less confident determining the return on social media.
EMROI is the incremental gain in revenue your company received as a result of marketing. It’s the key to revealing and proving the numbers that measure the total financial effectiveness of marketing.
Focusing on EMROI is especially important as the number of marketing channels has exploded to 60, from only 5 a few decades ago. As disparate channel mixes become more common in campaign strategies, it’s essential to focus on the benefit to enterprise.
In the past, calculating EMROI was no easy task. That’s because it requires collecting and integrating data from diverse sources, such as marketing automation tools, sales force automation, market share, finance, and much more. EMROI takes into account all data collected about the market, prospects, and customers throughout the sales cycle.
And the end result is very valuable indeed: EMROI provides empirical evidence of marketing’s value to the bottom line. In financial terms, it provides the hard financial analytics to prove marketing’s -financial contribution to the overall performance of a company.
As an added plus, EMROI can provide a global view into the entire business, including customers, products, markets and more, all measured in real time dollars. Leveraged properly, this can make marketing a strategic asset, more important than ever before.
Conclusion: marketing must increasingly focus on – and prove – its contribution to total
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