If you’ve ever been in any sort of marketing meeting, chances are you’ve heard the phrase Return on Investment (ROI). While the term is easy to throw around, actually measuring marketing ROI can be quite difficult and even perhaps misleading. At Saxum, we measure Return on Engagement (ROE) instead of ROI.
Return on Engagement (ROE) measures the exchange between brands and stakeholders within the market, allowing us to make calculated and informed decisions, moving quickly to fine-tune tactics so campaigns are efficient and effective.
The traditional ROI model measures results such as impressions generated through advertising, number of media articles placed or the amount of followers on a social media channel. These metrics only tell part of the story. Did the impressions lead to the reader taking the intended action? Did it even reach the right audience?
Instead of looking at results from a volume or frequency perspective, ROE helps us determine the quality of our marketing efforts and track actions that were taken as a result of those efforts. Engagement metrics take many shapes, such as sharing a piece of social content, watching a video, completing an online form, purchasing a product or voicing support for a cause. The action taken is the true value and return on the marketing campaign, not just the number of impressions generated.
Integrated marketing campaigns use a mix of tools from the communications toolbox, including advertising, digital tactics and public relations. Regardless of the medium, developing marketing campaigns from an ROE perspective leads to content that seeks to inform, educate or entertain. Good content gets noticed (and shared or discussed!).
So the next time you sit down to measure the effectiveness of your marketing efforts, challenge yourself to dig deeper. Or better yet, determine your success metrics from an engagement perspective from the start and use them to course-correct throughout a campaign so that results are even more impactful in the end.
By Lindsay Vidrine, Account Director