Measuring marketing ROI needs new metrics

Cindy Diamond, group sales director at Mediamark, says, “Tried and tested measures of sales conversions and brand awareness are not always aligned with the new needs of a world. Through their use of social media and their interactions with digital giants such as Amazon and Uber, South African consumers have learnt that they have a voice and that they are entitled to more personalised brand experiences. Old measures of marketing success such as frequency, reach, and brand awareness don’t tell us enough about how well we’re doing in building customer relationships.”

Driven by emotions

“Today’s consumer cares as much about the customer experience as he or she cares about brand, price and quality. Customer experience encompasses not only the value and worth of the product or service, but also how the consumer feels overall about his or her interactions with the brand.

“We’re looking at something quite subjective here - how we appeal to the consumer’s emotions. The question for every marketer today is how do we address the consumer’s needs, wants, and feelings so that we can drive profitable engagement with the brand.

“When looking at advertising, marketers today have the benefit of a wealth of demographic and behavioural data from digital channels to help them create emotionally engaging experiences. The data can tell marketers who consumers are, what they’re doing and what they are looking for.”

Role of creativity

“It is then up to the creative team to use this data to create messages and campaigns that will resonate with consumers. Armed with the right information, marketers now also have the ability to engage with customers with refined and more personalised messaging across targeted channels.

“The data from digital channels, such as social media, mobile and display, is especially powerful when it is combined with the reach of conventional mass media. Many people still have a close relationship with regional radio, for example, and it remains a deeply engaging channel.

“By supporting radio with digital channels, brands can extend the consumer experience, build further engagement and get more insight into the success of their customer engagement strategies. Real-world activations are another way to build engagement.”

Measuring engagement

“Engagement is hard to measure but some ways that companies could benchmark it, include the following.”

• Use of market research tools such as Net Promoter Scores (NPS)

• Tracking the frequency and session length of consumers’ interactions with the brand using its apps and website
• Sentiment, activity and advocacy on social media
• Customer churn and retention

• Trends in the customer’s use of the company’s products and services

“As marketers, we need to think about customers rather than channels as we build our campaigns. The question is not how just to get the best reach and frequency, but how to use a combination of channels to engage with consumers effectively and creating memorable experiences. This is where marketers will find their returns,” concludes Diamond.