Why is it important to measure ROI in Marketing?
A Return on Marketing Investment (ROMI) analysis helps organizations understand the effectiveness of their marketing spending. A ROMI analysis examines business results in relation to specific marketing activity. The benefit of this knowledge is that it allows marketers to focus their dollars on those programs that provide the greatest return.
How It Works
A ROMI analysis, utilizing data mining tools and processes, can reveal patterns about how and when customers buy. This information can be highly valuable in predicting sales and formulating relevant marketing strategies. Optimization Group’s data mining and modeling process consists of four phases:
To assure the results are important and relevant to the goals of the organization, we guide you in:
- Defining the marketing activities that the result will be measured against
- Defining the data that is required to complete the analysis effectively
- Defining external or environmental variables that may be appropriate for the analysis
- Defining the anticipated action steps to be taken based on the answers
2) Data Collection
To assure conclusions are based on accurate input, we work with you to:
- Identify and collect all the data available.
- Clean and normalize the data – getting it into an analytical ready form.
3) Data Analysis
TheGMAX™ system is implemented as part of a proprietary set of data mining and modeling processes to quickly discover relationships in the data, including:
- Meaningful variables and interactions discovered using TheGMAX™
- TheGMAX™ findings are explored using statistical and data mining techniques to validate the importance of those variables and interactions to the organization’s predefined goals
4) Presentation of Results
Once completed, we deliver the results in a format that is clear, concise and, most importantly, actionable.
How Our Return on Investment Analysis is Different
All return on investment analyses are not created equal. Our ROMI analysis offers:
- Support for the organization in finding collecting and organizing the data required, a critical element of the analysis
- Our expertise in applying a wide variety of tools to marketing data
- Proprietary data modeling tools
- Our expertise in interpretation across multiple businesses