Let’s be honest: marketers do what we do in search of a return. In most cases that return means dropping dollars to the bottom line following an expense of some kind. In the world of creative services, we have moved from conversations about reach, frequency and impressions to more tangible metrics. Yet, we still get tripped up on costs and how they relate to expenses. It is possible, to paraphrase Marty Neumeir, that we are looking at the measurable at the expense of what is truly meaningful?
A new way of looking at ROI
Every marketing expense gets scrutinized carefully. It should. After all, you don’t want to pay too much for that brochure, trade show exhibit, media event or website (feel free to insert your favorite expense here).
However, for some reason we all have an idea of what something should cost and rarely take the time to attach value to that cost. Perhaps the issue is because we define value in a limited way.
To most people, ROI means “Return on Investment.” But that definition implies a focus on the creator of the material and not the receiver of the material. Let’s redefine ROI and look at it in terms of the customer, not the purchaser. Let’s change ROI to mean “Return on Interest.” What is the return you get from creating interest in the mind of the customer? That is where we should be focusing our time.
A few examples
Here’s what it means to look at expenses in terms of Return on Interest, not Return on Investment:
Company A got a bargain on their new logo. It only cost them $700. As customers (new and old) viewed company material, the impression was cold, distant and dangerously close to unprofessional. No new interest was created and actually the logo turned younger prospects off by seeming dated and old school.
Company B paid much more for their logo. New customers saw a vibrant organization that seemed to be embracing change and striking a position for the future. New and existing clients inquired about the identity and the many things at work at the organization.
Company A then created a website at a bargain. They repurposed other off-line content (brochures, flyers, etc.) and felt very savvy about how quickly and efficiently the site came together. Search results suffered as a result of scant attention being paid to good development practices. In addition, site drop-off rates soared and leads trailed as a result of content not being adjusted for the web.
Company B looked at their website as a way to engage customers for the long run. They paid much more than company A in terms of target audiences and their unique needs. Site traffic, leads, downloads of premium content and other key metrics improved. The company looked at the site as something that would continue to build on past successes and made a commitment to update material and regularly promote new things.
The real return: customer engagement
Return on Interest means looking at what your audiences want to hear instead of only thinking about what you would like to tell them. The return comes from customers feeling empowered and engaged with your organization. The financial return might come today or months from now. Either way, it is better to have a customer’s best interest at heart than to risk repelling them with over-selling when it is not desired.
Think of ROI in terms of interest. Make investments in reaching and engaging your customer groups, and then the financial returns will follow.
- Mike
As president of OSD, Mike Peck leads branding and marketing strategy for a wide range of clients, from small businesses to Fortune 100 firms. He enjoys hiking and serving on organizations and boards, including the Greater Lawrence Chamber of Commerce.
