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How to find the ROI in multichannel marketing

Blue Latitude Health | 31st July 2014

Back in May, we wrote the blog post 'Top 10 things to consider when planning a multichannel campaign'; we covered the full planning aspect of the multichannel campaign; from the need to respond to overall business and campaign objectives to the all-important customer-centric approach. Sound familiar?

A key aspect that we didn't divulge was how to find the ROI in multichannel marketing. In fact, according to eyeforpharma's Multichannel Marketing Business Case Report 2014, proving ROI has been the main challenge to 28% of pharma executives in 2014. In the same way that digital is no longer an add-on to traditional marketing, ROI should be considered throughout the multichannel planning process and not just as a metric-focused process that is bolted on at the end of your multichannel planning.

So where does ROI begin?

The first thing that Blue Latitude Health considers is our clients’ brand and campaign objectives, the KPIs that are specific to them and of course the brand’s capabilities. Like we suggested in May’s blog post, founded on a customer-centric approach, there needs to be an excellent level of efficacy in the channels that you choose; in fact the channels need to be effective in engaging your audience but so too do your metrics. Arguably, for each channel and campaign there will be varying KPIs and different levels of ROI. It may be that limited data is available for certain HCP groups (this doesn't mean you shouldn't be collecting it), so clients might have to consider benchmarking ROI against the available country data; an example of this would be looking at email open rates for a certain target group within a country.

Metrics

As we mentioned, for every campaign and channel, KPIs will vary, as will the measurements used to judge the success of ROI. Automatically, when we think of ROI, too often large numbers of conversions are judged as a success; but before we break open the champagne and hand out the quarterly bonus - let’s pause for thought; what do these conversion numbers actually mean? And more importantly, are they actually answering your campaign objectives?

In her article, “Measuring multi-channel marketing: metrics that matter”, Deborah Runge states that using metrics simply asking the question – how many? – are limited in the insight they can generate, therefore metrics that ask ‘why?’ are likely to be far more effective. Our customer-centric approach to our work is the perfect answer to the ROI paradigm. The insight that we generate for our clients is founded on choosing the right channel for the target audience and delivering engaging content; the perfect ingredients for delivering ROI.

Being Realistic

At Blue Latitude Health, there is no room for idealism; understanding that different channels will bring varying levels of ROI are integral to the multichannel planning process. What do we mean by that? Well we know that a direct email is arguably the most targeted and measurable medium but that advertising can bring unprecedented levels of brand awareness, which we so often find with clients is a key strategic objective. So what’s the answer? It’s important that in measuring ROI, the correct and consistent measures and analytical tools have been put in place but vitally, the ROI must answer the initial campaign objectives.

Now go back to the beginning…

Below are some recommendations that you can take away from this week’s blog post:

  1. Plan your ROI at the start of multichannel planning.
  2. Campaigns should be set up based on marketing objectives and your ROI must answer these objectives.
  3. Remember – focus on the ‘why’ rather than the ‘how many,’ look beyond simple metrics in order to assess campaign ROI.
  4. Consistency – how ROI should be calculated across campaigns, needs to be addressed at the outset of the multichannel planning process.
  5. Flexibility – as campaigns develop so will your ROI – take into account the maturity of any campaign.

 

For further advice on how you can develop a more effective strategy, please send us an email.

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