Tagged 'ROI'

Are You Tracking the Right Metrics? The ROI of Customer Loyalty

Posted by Jeannie Walters on January 8th, 2014 at 1:16 pm

What’s the return on investment (ROI) of a loyal customer?
People ask me this question all the time. It’s a great question, and the answer is not as straight-forward as you might think.
The equation is much simpler for customer acquisition expenses and returns.
1 customer > 0 customers
It’s easy to exclaim: We’re winning! We’re on top! If we invest $5.00 in customer acquisition, and we get a customer for $19.99, then it’s easy to see we’ve quadrupled our investment. Yay for us!
The mathematics behind customer loyalty is messy. It’s much more difficult to calculate, there is no simple equation for how to get a solid figure, and it depends on factors that fluctuate, such as discounts. The fatal error, however, occurs when we ignore customer loyalty. You see, even if calculating the customer lifetime value (CLV) is too daunting, you can get still get a good idea of your customer churn rate.
For an excellent explanation and walk-through of CLV, check out this infographic from KISSMetrics.

Keeping it real, churn-style
Churn is a little easier to digest. For the sake of keeping it simple: it’s literally the number of customers you acquire versus the ones you happen to be losing. If you gain 100 customers in a... Read more

Square One: In-house Agency vs. Outsourcing Digital Marketing

Posted by Kent Lewis on October 4th, 2013 at 7:58 am

In the last few years companies have an increasing desire to take search engine optimization (SEO), pay-per-click (PPC) and social media marketing in-house. The trend, while logical, has dangerous implications for corporations and agencies alike.

Chipotle's 'Scarecrow': The Most Successful Mobile Marketing Campaign Ever? (Video)

Posted by Rick Mathieson on October 3rd, 2013 at 6:48 pm

It's looking like Chipotle has scored big with a new mobile campaign centered on YouTube video and mobile game.
As Venture Beat reports, Chipotle and Moonbot Studios produced an animated film and mobile game as part of its overall "Food with Integrity" campaign.
Here's the thing: As a branding initiative, it's generating boffo results. In its first two weeks, the YouTube video saw 6.5 million views. And within four days of the mobile game's release on the App Store, it was downloaded 250,000 times, making it the top 15 free iOS apps in the U.S.
According to VentureBeat, with success like this, other brands will take notice and start creating their own branded games.
But as I write in my book THE ON-DEMAND BRAND, this has been going on for some time, as I take an in-depth look at how Coca-Cola, Burger King, Axe, Dove a growing number of major B2C (and B2B) brands have been doing some very serious business with branded games.
And while VentureBeat credits the fact that there's no overt selling in the Chipotle game, which is being praised for its production values, I think the game is more powerful than just that. In my view, the reason it was worth... Read more

Why Are We Still Obsessing About Social Return on Investment?

Posted by Tara Meehan on May 30th, 2013 at 6:57 pm

Consider how you use social in your personal life. It may not be immediately obvious but ultimately your social choices are emotionally driven. Now, think about how you leverage social for business. Are you all about the analytics? Are you fixated on the traditional notion of those three little letters that have come to dominate the social measurement conversation – ROI? I’m asking you, begging you, pleading with you to get over it.
Now before you get crazy, I’m not trying to dismiss the importance of metrics. They have significance because they give marketers a window into degrees of consumer interest. And yes, then there’s engagement. We all know about engagement. But what metrics can’t accurately quantify is impact; metrics lack emotion. This is interesting because it is emotion that drives social habits. What do I mean by that?
I want you to think about your fondest memory. Maybe you were five years old. Perhaps you got the train set you always wanted for your birthday – always being pretty relative for someone presumably just entering kindergarten. Maybe you were sixty.  Perhaps you learned that you were going to be a grandparent. Whatever it was that made that moment so impactful, would... Read more

Marketing Metrics for the CMO

Posted by Tom Shapiro on May 9th, 2013 at 3:44 am

The CMO of the future is one grounded in analytics. Big ideas, creative vision and innovative thinking are all still critical for the long-term success of an organization, yet with the drastic proliferation of data available to a marketing team, the future CMO has no choice but to use the data to leverage strategic advantage over the competition. It’s either do that, or allow the competition to do the same to your firm.