Measuring return on investment

21st August 2019

Measuring return on investment

Marketing is the combination of everything that you do to attract new clients and new business. It helps to develop and maintain the right ongoing relationship with those clients, encouraging continuing business and valuable positive references. Marketing activity should always be measured by the Return on Investment (ROI).

What is return on investment?

ROI isn’t always easy to measure, but we should have a matrix in place to measure the effectiveness of each activity. We can liken the process to the farming industry, a farmer sows seeds that, on close examination, would appear to be small, but it is sown in the hope that a bumper harvest is the result. No farmer would continually sow seed in an area where there is no return of harvest, so why would you continue to sow hard earned money into marketing projects that produce little or no return?


An experienced consultant will advise you on the various options of how you can calculate ROI. Once you have achieved a reasonably accurate calculation method, the remaining challenge is to make sufficient allowance for a sensible and relevant time period. Marketing is a long-term, multi-faceted process that should lead to sales growth over an acceptable time period. It’s important to look at the longer-term impact rather than a short-term analysis, for example, you can spread the measurement over several months or even a year.

We should make an allowance for a reduced ROI during the earlier period of a marketing campaign, as this would usually be lower initially, until the campaign starts to penetrate the target market. Throughout the campaign period, sales growth should increase, and the cumulative ROI results of the campaign should start to look very rewarding.

There is an additional challenge that is more difficult to measure – some marketing campaigns are designed around additional factors, rather than just generating more sales – these can include things like brand awareness and the desire for a social media following etc. However, marketing should always produce sales growth over time. It is important not to set your marketing objectives too much around these additional factors because they are much more difficult to measure than increased sales.

Qualified and experienced marketing consultants are a great resource to help advise you on your marketing journey and guide you to a profitable return on investment.

For more advice on marketing return on investment, call David Antrobus Marketing
today on +44 (0)1925 909 050.

David Antrobus Marketing
West Barns, Bentleys Farm Lane, Higher Whitley, Warrington, Cheshire WA4 4QW
+44 (0)1925 909 050

David Antrobus Marketing