"Half the money I spend on advertising is wasted; the trouble is I don't know which half." This famous quote from John Wanamaker, the forefather of marketing, was uttered over 100 years ago.
Fast forward to the digital age, marketing has evolved far beyond advertising ( here is a video to simplify what marketing is), yet many business leaders still struggle with one pivotal question:
"What is the ROI?"
Don’t let the ROI (Return on Investment) question stall your progress. While it’s common for business leaders to use it as a reason to postpone critical marketing decisions, the right approach can transform it into a strategic advantage. In this video, we break down the concept, share key lessons learned, and provide actionable tips to help you tackle it with confidence.
Key Lessons Learned
Lesson 1: Break the Big Question into Smaller Tasks
Why it matters: Measuring ROI isn't about one magic number, it's about understanding the performance of smaller pieces in your sales and marketing funnel.
How to apply it: Instead of asking, "Is my marketing working?" ask:
Which channel is driving leads?
Are those leads converting?
Where are prospects dropping off?
Lesson 2: Growth is Spiral, Not Linear
Why it matters: Growth is rarely a straight line. It's an iterative process where small improvements compound over time.
Mindset shift: A campaign may not yield immediate conversions, but it might warm up your audience for future opportunities.
Key Tips & Takeaways
Tip 1: Start with Historical Data
Why it matters: Your past performance provides realistic benchmarks for future success.
How to apply:
Reflect on: What have I done before? What worked? What didn’t?
Use tools like CRM data, ad platform analytics, or surveys to establish benchmarks
Example: If your last campaign had a 2% click-through rate, aim to improve on that instead of chasing unrealistic targets.
Tip 2: Meticulously Track Each Step of the Funnel
Why it matters: ROI is often hidden in the details—understanding where prospects drop off can reveal where to focus your energy.
How to apply:
Track metrics at each stage: impressions, clicks, leads, follow-ups, and conversions.
Use tools like Google Analytics, eCommerce platform built-in tools, or custom dashboards.
Example: If you see a high click-through rate but low conversions, you know the landing page needs work.
Tip 3: Shift from Output-Focused to Outcome-Focused Thinking
Why it matters: It’s not about how much you do but about the results your efforts produce.
How apply:
Focus on measurable outcomes like revenue growth, client retention, or improved lead quality.
Example: Instead of saying, We sent 10 emails, ask, How many new prospects did the email campaign bring in?
Tip 4: Look for Patterns, Not Perfection
Why it matters: ROI measurement is a process of identifying trends, not a one-time solution.
How to apply:
Look for consistent patterns in the data, even if results aren’t perfect.
Example: If LinkedIn ads consistently drive higher-quality leads than Facebook ads, reallocate your budget to amplify what works.
A Mindset Shift for Growth
Stop searching for the perfect ROI answer and start understanding how every marketing action contributes to the bigger picture. Remember:
Growth is spiral, not linear. Even setbacks are opportunities to refine your approach.
Every step matters. When you meticulously track and improve each piece of the funnel, success becomes inevitable.
Take the Next Step
ROI is about more than just numbers; it’s about uncovering opportunities, tracking progress, and driving strategic growth.
If you’re ready to stop guessing and start building a marketing system that delivers measurable results, let’s talk!