Counting the Losses

We all know the big thing in marketing today is analysis and measurement of ROI.  These three letters make any marketing persons heart jump and pulse quicken as it is vital we show the continued value we are bringing to the business.  While measurement is very important (See the post "What Do They Want - July 20), it is only going half-way and not truly giving a representation of what we have done from our campaigns.

Companies launch a campaign, the responses start rolling in, they get passed to sales, the responses that turn into leads get counted, we track the leads that close and then derive the ever important ROI analysis (Note:  Some companies do this well, some do not). However, what most companies fail to do is to nurture and manage those contacts that did not go from response to lead, or lead to closed deal.  In essence they are left on the floor to dry up and die on the vine, even though the company has already paid for them.  So here we have good contacts who have responded to the message, which have been paid for and then ignored.

With this in mind next time a campaign is being measured it is only fair to measure LROITM or Lost Return on InvestmentTM.  This is the investment that has been made in responses and/or leads that go ignored and non-nurtured.  If the money has already been spent to get them, you have to measure this against your ROI to truly get an idea of the health of your marketing.

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