Beautifully said Lewis. And you are exactly right. For to long, marketers have resisted the inevitability of ROI, because it makes them nervous to think their work will be held to a standard of success against a predetermined set of objectives. BUT, marketing that fails to drive cash flow through the organization is wasted. No longer can we argue that we get so many "soft" benefits that prevent a good measure of ROI.

Frank,

We agree. Yes, there are intangible benefits. However, CEOs and CFOs don't really care that much about them. They need to show the Board real results--their jobs, and ours, are on the line for the top and bottom lines.

Hi Lewis, I find that one can gain credibility in eyes of senior management if a marketer works on the ROI model in conjunction with finance.

The output of a ROI model is much easier for a SVP/EVP to bless when the model itself been jointly developed with Marketing and Finance personnel.

Paul,

Great point! When I was at Starbucks, Finance was willing to work with every functional area. As a consultant, I make every effort to have my client's Finance or Accounting departments involved in establishing goals and measuring results.

Excellent post, Lewis. As a consultant and package designer, my job is to show clients successful results from past projects. It's also crucial to give them an overview and achievable goals based on our research--and not fall into the trap of explaining the nuts and bolts of every phase of our work. As you said, management doesn't want or need to know what tools we use. They do need to know that we have the expertise, insights and abilities to help them achieve their goals, ie, deliver results; that we have a history of doing just that for other clients that they can trust. That adds even more to ROI in my view--that great intangible known as value.

Good post, as always, Lewis. With the downturn in the economy, marketers who do not work to quantify results will have more to fear: the mighty budget axe. While it is fair to say that most company functions will see some budget cuts, the marketing function may get more than its share unless they are willing to set up some metrics. Significant marketing budget cuts, in turn, will have a detrimental effect on the company, so marketers need to pony up to their responsibility--and accountability--for everybody's sake.

Ted and Claire,

Great additions to the conversation. Thank you for your POVs. To repeat:

They do need to know that we have the expertise, insights and abilities to help them achieve their goals, ie, deliver results; that we have a history of doing just that for other clients that they can trust.--Ted

With the downturn in the economy, marketers who do not work to quantify results will have more to fear: the mighty budget axe.--Claire

Good stuff!

I agree, Lewis, that we don't need to go through all the details for clients of what we do to get to the desired results. But sometimes clients want to know - in general terms - what the process is and how it works. I wouldn't offer the information, but I'd be prepared to explain it if asked.

Lew -- Just so I don't worry about you, I just want to be sure you're clear: White socks do NOT go with everything... you know that, right?

; )

David,

I agree. We have to answer all client's questions. Thanks for adding that.

Ann,

They don't? Oh, oh. I'm in white sox as I type this and am feeling kind of trashy wondering what kind of person am I.

Good construct to think about this stuff, Lewis. I am wearing white socks with my suit to my next budget review.

That'll show 'em!

Seriously, avoiding the "by-the-tool" ROI analysis is a sound practice.

Of course, it helps if your metrics are looking better Q/Q - otherwise the Ax could come down on anything new you've added. Seen it before.

Patrick

I do like the implicit idea here of team work between different departments and functions. We are all on the same side working toward the same goals.

Well firstly on the fashion front white socks really don't go with everything, in fact they should only ever be worn as part of your sports kit.
But on a serious note, yes what you say makes perfect sense and impportantly as a marketer I fully believe the function of marketing should always be there to generate income for the business.
So for example any consultant should be confident that the advice and support they offer will far exceed the invoice they present to their clients.
It is that simple, and the good consultants know only too well not to try and hide behind a wall of jargon to justify their fee.

Patrick, Neil and John:

Thank you for helping me with my white socks fashion statement. Just a note: I have on white socks again today.

More important, your sage advice regarding revenues, cross-functional efforts and delivering ROI to clients are spot on.

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