Marketing has often been referred to as the black hole where the money goes to die. The reasoning behind this is actually simple. Companies spend a lot of money on marketing, and sometimes it’s hard to justify this kind of spending.
Well, this is the exact challenge that marketers have to deal with every day. In fact, a study done on over 300 marketing leaders in the US showed that demonstrating the financial impact of marketing is often the biggest challenge.
But demonstrating impact is a crucial thing. It is the only way a marketer can justify his or her plan and be accountable to the company that hired him/her.
Demonstrating the Financial Impact of Marketing
Well, there could be a few ways to show the financial results of your work:
1. Focus On the Overall Business Value
Marketing is more than just customer conversion. It is the marketing team that helps companies maintain and grow their brands. Such teams are an enabler of innovation, and they also play an important role in helping businesses attract talent as well. Instead of going directly to real financial metrics, it can be a great idea to demonstrate this kind of “soft value” that the marketing team adds.
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2. Know Your Metrics
Any marketing team will have its own fair share of KPIs or Key Performance Indicators. These are basically the metrics that are used to gauge marketing performance or efficiency. However, in order to demonstrate the success of a marketing plan and the value, it’s adding to the business, you will need more than that. Presenting KPIs in a boardroom meeting with senior managers to try and justify marketing decisions is not enough. You also need to explain how those KPIs are calculated and why they matter. This requires a lot of deep knowledge of marketing metrics, so take your time and learn as much as you can.
3. Explain the Uncertainty Associated with Measuring Marketing Success
Even as you explain the fundamental aspects of KPIs and why they matter after buying Famoid Instagram followers, it may also be a good idea to explain the limitations of measuring marketing success. The marketing world is much more unpredictable. There are many factors that may affect business performance even in cases where the marketing team has put in the best effort. You have to understand all these uncertainties and how they may work against your marketing strategies.
4. Demonstrate Rigor in Managing the Marketing Budget
One reason why marketing gets the biggest share of attention from senior executives is because of its supposed overall cost. There is this belief in the corporate world that marketing teams get too much leeway to spend money without enough accountability. This is why there is always a lot of emphases to demonstrate the financial impact. You can, however, earn the trust of senior management by demonstrating rigorous management of the marketing budget. Demonstrating how every dollar has been spent and the value it added to overall company growth can be a huge plus.
Showing the financial impact of marketing is not easy, but it’s also not impossible. The simple tricks above should indeed help you get started.