Tag Archives: NPV

Having 10 Strikers Won’t Win You the World Cup

I recently came across an article on MarketingSherpa, in which David Kirkpatrick asks: is the emphasis on ROI actually hurting Marketing? The article is based on an interview with Menno Lijkendijk, director of the Dutch B2B marketing company Milestone Marketing, ‘Can the focus on ROI create problems?’, Lijkendijk was asked. It is a topic which has my full attention.

Let’s start with my short answer: no, the focus on ROI is not hurting Marketing. But the wrong ROI focus is likely to create problems, and no focus on ROI will definitely create problems.

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The Real Value of Operational Marketing Excellence

The business case for Operational Marketing Excellence can be rock solid, if you use the right arguments, metrics and calculation.

Using benchmark figures from the forthcoming publication from MRMLOGIQ, you can calculate that the result of your Operational Marketing Excellence program may represent a net present value of up to 29 % of your total marketing budget in the first year. Over three years it may even add up to an impressive 55 %, taking the discounted cashflow into account. Read More…

ROI, “Break Even” or NPV?

How to calculate the sustainable value of your Operational Marketing Excellence Program? There are many ways to calculate a return on an investment and to calculate value to shareholders. All these methods have their advantages and disadvantages and are accompanied by many smaller variations fine tuning the same advantages and disadvantages. Picking one means balancing the pros and the cons for your specific goal and topic. In a simplified world you could cluster the methods as follows: Read More…

Successful Marketing Organizations Measure ROI

The top-tier of highly effective and efficient marketing organizations use ROI, bottom-line oriented metrics and are outgrowing their competitors. This is one of the results from the 2011 Lead Generation Marketing ROI Study, by the Lenskold Group and Pedowitz Group. The study looks at the use of marketing metrics and marketing automation for managing and delivering ROI and growth. Read More…