Last July, I wrote about the increasing emphasis in B2B marketing on justifying marketing investments, and the drivers behind this shift. Marketing Accountability and Return-on-Marketing-Investment (ROMI) are part of the new business mantra.
Research shows that over 85-90% of companies now recognize Marketing Performance Measurement as a significant priority. And yet less than 10-15% of these companies have any comprehensive process in place to measure marketing performance or ROMI.
Today, I’d like to introduce you to a great tool that has just been released: A powerful but easy to use ROMI calculator that lets you quickly determine the marketing ROI of turning your current website into a magnet for inbound sales prospects. In other words, investing in Inbound Marketing and Marketing Automation.
The calculator delivers one of those quick “back of the envelope” calculations that entrepreneurs depend on for their decision making process. The tool includes interactive features to allow you to play “what-if” scenarios. Even better, it provides best-practice guidelines on what kind of traffic you should expect on your website, and what conversion rates you should aim for as you convert visitors to active visitor, to identified prospect, and finally to new clients. And don’t be scared off if you are not a financial or accounting genius, because the calculator includes step-by-step help for each input you have to provide.
The calculator highlights in red any ROI below 15% as unsatisfactory. However, results for most companies end well in the “green”. In fact, most mid-sized B2B companies that are still relying on traditional marketing and sales find that their potential payback from an investment in Inbound Marketing and Marketing Automation is better than 50%. And that’s a very attractive return relative to most traditional marketing initiatives.
Smaller companies might argue that they need a minimum ROI that is even higher, given the scarcity of cash, and the fact that this scarce cash must compete with other critical needs in salaries, product development, and manufacturing. However, I would argue that for many small companies, getting those first few reference clients and “crossing that chasm” into targeted market segments is everything. So, I would be willing to invest my small business cash if it generated “in profile” customers, and an ROI of 50% or better.
But it’s your call. You can check out your ROI opportunity by using the calculator at (http://www.inbound-marketing-automation.ca/romi-calculator/), or remain in the dark. And once you’re fully armed, don’t let any marketer convince you to invest in a website marketing scheme without crunching some numbers first.
Post by Axel Kuhn, President, www.inbound-marketing-automation.ca
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