Realizing ROMI Part 1: Are Marketers Really Seeing Value From Their Martech Investment?
June 13, 2018
Marketing technology (martech) spends are on the rise, and that upward trajectory is expected to continue. Recent research projects US marketers increasing their martech investments by 27% over the next four years—that’s a projected spend of about $122 billion by 2022. But are marketers getting the best return on their marketing investments, aka ROMI? Let’s take a look at how today’s marketing teams can best realize the value of those investments.
While spending is up, how can marketers gauge the value of these efforts? In the past, return on investment (ROI) was the gold standard for calculating the efficiency of any spend. If you just divide the net profit from the total cost, you get your ROI percentage. However, when it comes to measuring your organization’s marketing efforts, ROI tends to oversimplify the equation. That’s because the value of a marketing program goes beyond revenue measurement. It includes other important factors such as engagement, consumer perception, brand awareness and customer lifetime value.
That’s where the return on marketing investment (ROMI) comes into play. ROMI seeks to quantify these other very important metrics as an indicator of a marketing program’s total value. From CRM systems to analytics and automation platforms, today’s marketing departments may be responsible for purchasing and managing complex technology investments. To prove value to a company’s leadership, marketers must be able to explain both the financial benefits of these systems and the potential of the tools they’ve made a part of their martech stack.
In the first of our 4-part series on “Realizing ROMI,” we ask an important question. Are marketers getting a return on their investment when it comes to martech? Here are four reasons why the answer is a resounding “yes.”
ROMI Reveal #1: Martech saves you time…and time is money!
Marketing automation tools help scale digital efforts by simplifying and automating processes that would take a human a lot longer to execute. For example, automation helps with capturing and nurturing leads 24/7, optimizing the customer journey, automating the sales funnel and so on, giving you a ton of bang for your marketing buck.
ROMI Reveal #2: Martech helps you create better, smarter campaigns.
Martech tools allow you to track the success of your content campaigns in real-time and over time. This means that you can adjust a campaign as it’s happening, then use those learnings to guide and improve future campaigns. That allows your marketing org to funnel precious dollars into programs you know will work.
ROMI Reveal #3: Martech helps you boost conversion rates.
From email retargeting to site use analysis to A/B testing, martech tools help you increase conversion rates. An up-to-date martech stack allows your teams to test and tweak the content and usability of your site. Does it drive users to take the desired action at every stage of the funnel, from awareness to acquisition to engagement and conversion? That’s the ultimate goal.
ROMI Reveal #4: Martech helps drive repeat purchases.
Customer retention is good for your bottom line, plain and simple. Returning customers buy more than first-time customers, at a spend rate of 67% more, per order. So it’s in your org’s best interest to try and secure repeat customers. Martech tools help drive and build brand loyalty through dynamic segmentation, improved customer experience, personalization, and incentive programs.
From collecting data to capturing insights to saving time, the benefits of martech investments are real and measurable. Organizations that care about efficiency and growth–and invest in marketing technology accordingly–are bound to see some very real returns on their marketing investments.
Stay tuned for the second installment of our 4-part “Realizing ROMI” blog series. We’ll continue to share our battle-tested perspective and practical advice for moving the needle on digital transformation for your organization.
Stay up to date with our email updates!
The Martech Enablement Series
Check out A Nine Part Practical Guide to Martech Enablement written by Peter Ladka and featured on Martech Today. In it, Peter shares an approach marketers can take to successfully enable martech within their organization.