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ROI top effectiveness metric demanded by C-suite

ROI is considered by marketers to be the primary metric required by the CEO, CFO, and other senior stakeholders to demonstrate marketing effectiveness.

More than two-thirds (41.6%) of the more than 1,300 brand marketers who completed Marketing Week’s second annual Effective Language survey, powered by Kantar, said ROI was weak. The most important factor to consider for a meeting room.

This is down from 48.4% last year but is by far the most important metric that marketers believe the board wants to see.

However, the weighting for ROI varies depending on company size. More than half (52.5%) of marketers at larger businesses (those with more than 250 employees) say ROI is the key factor, which drops to 29.7% in businesses small. It’s also not the most important metric for senior stakeholders at SME, with small-business marketers recommending new customer acquisition (32.3%) as the most important metric for the board of directors.

It’s a similar story when comparing B2C and B2B, with consumer companies (41.8%) more likely to consider ROI as the most important metric than targeting businesses (36.9). %). Acquiring new customers is also more important than ROI at B2B companies (40.4%).

Of the entire sample, new customer acquisition (36.1%) is the second most important metric, while business results (35.4%) are third, showing that those at the top consider Instant economic returns are key to any financial investment.

Other metrics that marketers recommend high C-suite rates include conversion rate (26.5%), brand awareness (21%), customer retention rate (16.9) %) and customer lifetime value (15.4%) – all other metrics related to performance. Less than 10% of high-level stakeholders consider brand attributes a valuable tool to measure the success of a marketing campaign with it coming in 11th out of 14 low-level attributes. .

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money negotiations

It is perhaps not surprising, then, that 48.1% of marketers believe their company is too focused on ROI when it comes to effectiveness checks, a slight increase from the 45.7% reported during the same period. last year and significantly higher than the 23.7% of marketers who believed otherwise.

Yilmaz Erceyes, CMO of Premier Foods, warned that this very focus on ROI could lead to a dilution of brand equity and could “translate into a performance problem in the medium to long term”. This is a view shared by Les Binet, head of efficiency at Adam&eveDDB, who stated in October that if you “optimize ROI, you will destroy your business”.

It may be a little consoling, however, that more than half of marketers surveyed (56%) overall have a positive feeling that senior leadership understands the importance of both short-term and short-term marketing effectiveness. long-term.

Breaking it down even further, 19.4% of marketers strongly agree and 36.6% agree that senior leadership understands the importance of brand marketing in a diverse mix of mediums. the media.

However, demand for performance marketing has surged amid many economic uncertainties, so time will tell whether this confidence in the brand translates into increased budgets. .

Marketing Week is planning a series of content based on Effective Language data. In the coming weeks, we’ll explore how economic uncertainty has affected budgets and the role of digital media.

Click here to read all of our Effective Language content

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