What is the ROI of the Marketing Plan? Many managers or clients ask themselves this question to know the profitability of the same and, therefore, if the money is being invested in a good way. However, I believe that focusing solely on ROI is a mistake, since it is only part of the business performance and in these times a large part of the profitability is on the impact of relationships and not directly on the conversion of Sales.
It should be noted that ROI or “Return on Investment” (measured mainly in Traditional Marketing, SEO or SEM campaigns) is only the tangible part of business performance. However, the other part remains to be seen, that is, the intangible. This is manifested mainly by the IOR or “Impact of Relations” (mainly occurs in Social Media), which is very important in these times.
Why is IOR as important as ROI now? The reason is that we are in a period of transition to a new economic model (Juan Carlos Cubeiro calls it “Talentism”), moving from an industrial era to a digital age. In this age, the intangible (human capital, customers, brand or expectations) have much more value than the tangible (the monetary results that we can see in the short term).
The emotional overcomes the rational and the right hemisphere of the brain (where more creativity develops) becomes more important to get ahead in the new challenges that arise, since we will have to get used to working disruptively and constantly seek new solutions. The quality and efficiency of the industrial age are no longer enough and more is needed, that is to say, sufficient adaptation to the digital environment that allows the creation of satisfactory experiences for consumers.
How can we measure that intangible part? Through visits, the number of loyal followers, mentions, engagement, etc. It is based on an emotional connection and has its best version in the perception of a brand like “Lovemark”. However, they are not as easy to measure as the money we get, but obsessing over just making money in the short term is a mistake. What works today may be obsolete in the future and, therefore, we must give importance to the intangible.
As Elena Gómez Pozuelo says, “on the Internet, ROI is to remain alive in 5 years.” To do this, there must be a correct attitude throughout the company. Marketing is an attitude of the whole company, not just one department. And cutting a lot of the Marketing Department’s budget in times of crisis can be a serious mistake, since it is what allows you to strengthen your positioning and be able to get new clients. Peter Drucker said: “A company has two, and only two, basic functions: Innovation and Marketing.” These are part of the value proposition and produce benefits. The other areas generate costs, but they are also fundamental for the operation of the business. Therefore, do not underestimate Innovation and Marketing and seek to win the loyalty of consumers.