Marketing Analytics Services - RoMIAstute Analytics™ Executive Dashboard
Astute Analytics™ – Marketing Analytics Services
Astute marketing analytics services focus on the data that drives decisions, keeping your finger on the pulse of your business. Not all data is good data, especially if it measures volume of activity, rather than results. This “vanity” data provides minimal to no value for strategic planning and executive decision making. We focus on data that impacts the bottom line, the Key Performance Indicators (KPIs) such as Return on Marketing Investment (RoMI).
Massive amounts of data are readily available in today’s data-driven information overloaded world. Service providers tend to report as much data as they can, in the hopes of making it seem like they are working hard for their clients. With so much data floating around, it is easy to got overwhelmed and confused.
Astute Analytics™ is our exclusive KPI focused executive dashboard we developed for our clients. Originally created to validate Return on Investment in Fractional CMO Services. It is a powerful management tool that provides a clear and concise summary of the results marketing has generated in a given period. Enabling leadership to keep their hands on the pulse of their marketing efforts.
Who it’s for
- Executives who seek agility for continuous improvement
- Businesses focused on substantial growth
- Marketing generates inconsistent results and sporadic growth
- Organizations that are not achieving Return on Marketing Investment
How it Helps
- Clear and concise summary of critical performance data
- Empowers continuous improvement through agility
- Measure critical KPIs like Return on Marketing Investment (RoMI)
- Powerful tool for encouraging investors and lenders
Great marketing is driven by strategy, not creativity. Savvy business executives realize this and use it to their advantage, they treat marketing like an investment, one that yields strong returns when properly executed. They start by developing a strategic plan, then they utilize the right technology, people, and processes to implement that plan. These savvy executives also monitor results with KPI focused analytics to evolve marketing campaigns and optimize the Return on Marketing Investment (RoMI).
Return on Marketing Investment (RoMI)
There is a direct connection between marketing and revenues. Unfortunately, so many SMBs have trouble seeing it. We clearly identify it with an extremely powerful Key Performance Indicator (KPI) we call RoMI.
What is RoMI?
RoMI stands for Return on Marketing Investment, it is a KPI that provides a true assessment of the value of your marketing efforts. RoMI accounts for the cost of marketing, something most third party services avoid.
It is the validation that we convert marketing into an investment, rather than an expense. After all what good is revenue growth, if it does not yield an increase in profitability?
How RoMI Works?
We assess your current marketing and establish a performance baseline for the marketing efforts before bringing in an Astute CMO. Then we develop your executive dashboard, Astute Analytics™. A periodic analysis report that captures and clearly presents the Key Performance Indicators (KPIs) that move the needle.
We eliminate vanity metrics that measure volume, we measure results and the key factors that impact those results. Then we compare the net change in revenue with the net change in marketing expenses over a specified period of time to determine your Return on Marketing Investment.
Why RoMI Matters?
RoMI is a bottom line calculation that sums up the value of your investment in marketing by assessing expenses against revenues in a given period. It validates that your marketing is a revenue generator, rather than an expense.
While every other CMO is focused on top-line revenue growth, we add another layer, the bottom line! Most Fractional CMOs, marketing agencies, and consulting firms avoid exposing how the cost of their services impacts your bottom line. We report on it, loud and clear, then drown it out with the increase in revenue that we generate.
Return on Marketing Investment Formula
The Formula for Return on Marketing Investment measures the profit derived from all investments in your business marketing. The formula is used to evaluate and rank marketing campaigns, as well as the entire marketing function.
Note: Although The Return on Investment Formula calculates a ratio, however it is typically expressed as a percentage. One hundred percent is the break even point. Therefore a positive return on marketing investment is greater than 100%, and obviously a loss is less than 100%.
How to Calculate Return on Marketing Investment
The simple formula to calculate Return on Marketing Investment is
(Sales Growth – Marketing Cost) / Marketing Cost = RoMI
This is used to calculate the Return on Marketing Investment for a business or product line.
Sales Growth = $55,000
Marketing Cost = $5,000
(55,000 – 5,000) / 5,000 = 10
that is 10x growth or 1,000% ROI