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Determine Marketing Expenditure ROI

Multi-Line Financial Services Provider

What we did
• Identified marketing programs which had been completed over the past three years; programs reached across 10 marketing channels
• Outlined alternate means of evaluating programs
• Obtained client consensus on approach
• Reviewed cost of program vs. budgeted amount
• Calculated short- and long-term sales/profit impact for 284 programs

What we discovered
• Relevant sales data was difficult to identify—even in a data-driven company
• ROI was widely dispersed; most programs had either a very positive or a very negative ROI
• Even in successful programs, many component tactics proved unprofitable
• Because of the business’s margin structure, short-term programs were almost never profitable

Strategy
• Prepare marketing expenditures “key learnings” for client organization

Tactics
• Catalogued programs which succeeded and those which didn’t
• Identified generic tactics which were more likely to succeed
• Built parameters for developing future marketing programs
• Recommended more tightly defined sales tracking procedures and program monitoring

Results
• Key learnings were shared with line managers
• Going-forward marketing program strategy was modified to incorporate results and learning
• Client has internally formalized a tighter, more defined approval and pay-out process

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