Everyone wants to see a measurable return on their investment, whether investing time, energy or capital. But, let’s be frank: some things are immeasurable. You would never consider, for example, applying ROI to your relationship with your spouse, children or closest friends, would you?
It’s also more difficult than you might think to determine the returns on your marketing investments. Many platforms would have you believe that the higher number of impressions, views or clicks equal a more effective marketing campaign.
This is not necessarily so.
Andy Frawley, CEO of Epsilon, came up with a formula that is a better fit for measuring marketing effectiveness than ROI: ROE2 = return on experience x engagement. Frawley contends that ROI overlooks some important elements in marketing campaigns, primarily emotion.
How consumers feel about a brand greatly impacts how well a marketing campaign works, and also controls brand loyalty.
As noted by Fred Jacobs of Jacobs Media, “This goes to the heart of why consumers often favor brands even where price points are less competitive, and barriers are higher. But the payback is the brand experience. We pay more and even stand in longer lines at Whole Foods, Starbucks, and Apple Stores. We tend to forgive them when they stub their toe by coming out with a product that is perhaps not up to their standards. The benefit is in knowing these brands know you.”
Apple fans will stand up for the brand in online forums, will stand in line for the latest product, will stand through failures and mistakes – Apple fans have, essentially, become a branding tool for Apple.
How do you get that same loyalty? You build relationships.
That’s what we’ll be talking about in the Invisible ROI series – stay tuned!
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