Markedu has set out to interview marketers who take an active part in shaping our industry. In this interview you can meet marketing ROI expert Guy Powell. He is the author of 3 books on the subject of Return on Marketing Investment and a frequent speaker and lecturer.
1. Tell us about what you do, and what you did before then?
Guy Powell: Currently I run two companies. One, DemandROMI, is the consulting arm providing marketing services and training to large corporations on how to use marketing ROI to improve their strategic and tactical decision making.
My other company develops consumer centric marketing decision support software with the brand name, MarketSim. Combined with DemandROMI consulting services MarketSim has been used by many brands around the world delivering a strategic advantage in accelerated growth and profit through improved marketing decision making.
2. You have written three books related to Return on Marketing Investment. Can you give marketers one piece of advice from each book ?
Guy Powell: I think the one piece of advice that is woven throughout all books is the importance of building a measurement culture in marketing.
About 6 years ago I held my first marketing ROI workshop and at the end of the session one of the participants came up to me and said
‘Guy, this is all great stuff, but I don’t have the data.’
My response to her was to use the concepts presented to start measuring now so that twelve months from now you’ll have the data in place be able to begin building a marketing analytics infrastructure. Sure enough after 18 months she called me up and said, ‘Guy, we’re ready. Let’s start figuring out how we can use this data to deliver more profit from our marketing investments’.
In the meantime, we have been working with this company and have increased their bottom line by a few percentage points (of revenue) in increased profit. So the message is; begin measuring now. Figure out what the right things are to measure and start measuring.
3. Marketers seem to be a bit reluctant to begin measuring marketing ROI – is that your experience too and what does it take to get started?
Guy Powell: Yes, this is my experience. As I consult and facilitate marketing ROI workshops, I’ve found that about 80% to 90% of the marketers in the world haven’t figured out how to measure their success from marketing.
It doesn’t matter whether they are B2B marketers or B2C, they simply haven’t made the cultural change that measurement is just as important as the development of a TV, print or Internet campaign. One thing that I always bring up when talking with marketers is that an infrastructure of marketing measurement and analysis can deliver the same or better gains that they can receive from their best media activities – and I can prove it !!
To get started in measuring marketing ROI is simple. It requires a cultural shift at the top level that marketing measurement is just as important a marketing discipline as any other. We’ve worked with so many companies, especially in Asia, that are now making that shift. All it took was the desire to start measuring.
4. At your Masterclass in Lisbon you will be talking about ROI on social media. What are the most important lessons for ROI in social media?
Guy Powell: Certainly measurement is important, but with social media, because there is so much data, the important thing is to measure the right things. To put them into a framework that shows the increased value for the individual, the consumer and the company that social media can bring.
To this end, we developed a Media Engagement Framework, that structures the key data elements to build and support great social media strategies. We also put together three tenets of social media that underlie how marketers need to think of social media.
1. Social media is an equal to traditional and digital media in delivering increment revenue, profit, brand and share for the company
2. Social media has two key elements: Inbound listening to support functions, such as customer service and market research and outbound messaging to support the brand image and position.
3. Social media is more than just one media channel. It is instead made up of many different channels, whether it’s Facebook or QQ, Twitter or Sina, YouTube or Tao Bao or many other types of social media channels found around the globe.
5. Can you mention any particular successful marketing ROI case studies?
Guy Powell: Yes, there are many. I think one in particular is with a gas utility in using marketing analytics to drive down the level of churn. Through the analytics we’ve done, we were able to drive the annual churn rate down from about 6% to 5% (these numbers are disguised).
For an Asian FMCG we were able to help them deliver short term value in their marketing actions worth 2% of sales, and long term deliver brand imagery growth worth 1% to 2% of sales. For a global software and services provider we’ve helped them find the 50% of their marketing that wasn’t working. The actual number was so close to 50% that it was uncanny.
6. Finally, please tell us why marketers should consider attending any of your presentations about marketing ROI?
Guy Powell: If you want to deliver more value for your customers/consumers through improved delivery of better messages and brand statements, if you want to deliver more revenue, profit, brand and share for your company or if you want to earn more and accelerate your career, then a clear understanding of marketing ROI will do it.
Our marketing ROI workshop will show you how to understand how your consumers make purchase decisions to significantly increase your marketing ROI, how you can turn this into value for your company and then lastly connect the dots between improved marketing ROI and your career.
Want more like this? Here is what you can do if you want to hone your marketing skills
– See if we offer a free webinar about marketing ROI and related topics
– Check if there is a conference, workshop or masterclass about this topic
– You can see a recent interview with acquisition marketing expert Rui M. Nunes here