Comments on: The Softer Side of Marketing ROI http://www.marketingroiordie.com/2009/10/04/the-softer-side-of-marketing-roi/ Mon, 26 Jul 2010 14:54:52 +0000 hourly 1 http://wordpress.org/?v=3.0 By: Calibrero Insights » About Soft Marketing ROI and Vegetarian Meat http://www.marketingroiordie.com/2009/10/04/the-softer-side-of-marketing-roi/comment-page-1/#comment-70 Calibrero Insights » About Soft Marketing ROI and Vegetarian Meat Fri, 01 Jan 2010 23:44:03 +0000 http://www.marketingroiordie.com/?p=248#comment-70 [...] ROI and soft ROI. Rebekah Paul has a great weblog titled Marketing ROI or Die. In her recent blog, The Softer Side of Marketing ROI, she defines soft ROI as: “those benefits that are difficult to measure but help to achieve [...] [...] ROI and soft ROI. Rebekah Paul has a great weblog titled Marketing ROI or Die. In her recent blog, The Softer Side of Marketing ROI, she defines soft ROI as: “those benefits that are difficult to measure but help to achieve [...]

]]> By: Rebekah http://www.marketingroiordie.com/2009/10/04/the-softer-side-of-marketing-roi/comment-page-1/#comment-28 Rebekah Sun, 11 Oct 2009 18:46:07 +0000 http://www.marketingroiordie.com/?p=248#comment-28 <a href="#comment-27" rel="nofollow">@Bob Snyder </a> Hi, Bob. I do like your choice of examples! Best, Rebekah @Bob Snyder

Hi, Bob.

I do like your choice of examples!

Best,
Rebekah

]]> By: Bob Snyder http://www.marketingroiordie.com/2009/10/04/the-softer-side-of-marketing-roi/comment-page-1/#comment-27 Bob Snyder Sat, 10 Oct 2009 17:36:19 +0000 http://www.marketingroiordie.com/?p=248#comment-27 Everybody likes to show how well they embrace "hard ROI" but I agree with Rebekah that there are marketing activities you should pursue that cannot easily be measured but that return benefit. Rebekah may not agree on my choices of examples, but let's take participating in a conference where you are a Keynote Speaker. You can "measure" it by 1) how many business cards you get 2) an analysis of the quantity and quality of the audience (that probably the organizer has to provide you) or 3) did we get any orders from this audience? But 1 and 2 are not real ROI until you can link them back to dollars (or euros in my case). And 3 may have such a long sales cycle (and you may not have a list of all audience to track.) So my hard ROI bean counters may ask me not to make the speech...But what if that speech influences decision makers that then more readily agree to meet with my sales reps? That's worth something sure but the cost to measure than may preclude HARD ROI whereas common sense tells you if it is an audience of industry buyers, it is worth the time to try. (My bean counters here are saying we will catch the ROI if we add my speech to the How did you hear of us? question for all new customers... but maybe we will and maybe we won't-- and in what time frame?) It is of course desirable to make all marketing HARD ROI but especially in small business-- the cost to really measure is outweighed by common sense. Even some of the "measuring" that takes place to justify trade show marketing, magazine ads and PR really is not accurate or true measurement: it is just an exercise where someone is trying to prove to others what common sense has already dictated. It's not all Science. Reminds me of ZEN & the ART of MOTORCYCLE MAINTENANCE where the lead character is a professor driven crazy trying to intellectually quantify QUALITY and ends up finally concluding: You'll Know It /Feel It When You See It. Everybody likes to show how well they embrace “hard ROI” but I agree with Rebekah that there are marketing activities you should pursue that cannot easily be measured but that return benefit. Rebekah may not agree on my choices of examples, but let’s take participating in a conference where you are a Keynote Speaker. You can “measure” it by 1) how many business cards you get 2) an analysis of the quantity and quality of the audience (that probably the organizer has to provide you) or 3) did we get any orders from this audience? But 1 and 2 are not real ROI until you can link them back to dollars (or euros in my case). And 3 may have such a long sales cycle (and you may not have a list of all audience to track.) So my hard ROI bean counters may ask me not to make the speech…But what if that speech influences decision makers that then more readily agree to meet with my sales reps? That’s worth something sure but the cost to measure than may preclude HARD ROI whereas common sense tells you if it is an audience of industry buyers, it is worth the time to try. (My bean counters here are saying we will catch the ROI if we add my speech to the How did you hear of us? question for all new customers… but maybe we will and maybe we won’t– and in what time frame?) It is of course desirable to make all marketing HARD ROI but especially in small business– the cost to really measure is outweighed by common sense. Even some of the “measuring” that takes place to justify trade show marketing, magazine ads and PR really is not accurate or true measurement: it is just an exercise where someone is trying to prove to others what common sense has already dictated. It’s not all Science.

Reminds me of ZEN & the ART of MOTORCYCLE MAINTENANCE where the lead character is a professor driven crazy trying to intellectually quantify QUALITY and ends up finally concluding: You’ll Know It /Feel It When You See It.

]]> By: Ewald Jozefzoon http://www.marketingroiordie.com/2009/10/04/the-softer-side-of-marketing-roi/comment-page-1/#comment-25 Ewald Jozefzoon Wed, 07 Oct 2009 20:04:44 +0000 http://www.marketingroiordie.com/?p=248#comment-25 Great blog! Allow me to be a bit more critical of the term "soft" ROI. In a way, "soft" ROI is like vegetarian meat. Just because you call it meat, make it look like meat, and even make it taste somewhat like meat doesn't make it meat. Call me a purist, but to me, the whole idea behind ROI is to offset benefits against investment while hoping for a positive result. No one will contest that there are benefits to employee & customer retention, to brand awareness & brand trust, to engaging customers, to sharing values, et cetera. But put in the context of ROI, the question is: will the benefits outweigh the related costs? And that's a fair question. How else do we determine what's the right cost for realising these benefits? I do recognise that it isn't always easy to measure the effects of these "soft benefits". But that doesn't mean it is impossible. If we state that these "soft benefits" are powerful ways to drive business, then we must be able and ready to support this with data. Hence my opinion: much like there is no such thing as vegetarian meat, there is no such thing as soft ROI. Great blog! Allow me to be a bit more critical of the term “soft” ROI. In a way, “soft” ROI is like vegetarian meat. Just because you call it meat, make it look like meat, and even make it taste somewhat like meat doesn’t make it meat. Call me a purist, but to me, the whole idea behind ROI is to offset benefits against investment while hoping for a positive result.

No one will contest that there are benefits to employee & customer retention, to brand awareness & brand trust, to engaging customers, to sharing values, et cetera. But put in the context of ROI, the question is: will the benefits outweigh the related costs? And that’s a fair question. How else do we determine what’s the right cost for realising these benefits?

I do recognise that it isn’t always easy to measure the effects of these “soft benefits”. But that doesn’t mean it is impossible. If we state that these “soft benefits” are powerful ways to drive business, then we must be able and ready to support this with data.

Hence my opinion: much like there is no such thing as vegetarian meat, there is no such thing as soft ROI.

]]> By: andrew weir http://www.marketingroiordie.com/2009/10/04/the-softer-side-of-marketing-roi/comment-page-1/#comment-22 andrew weir Wed, 07 Oct 2009 17:15:28 +0000 http://www.marketingroiordie.com/?p=248#comment-22 A posting on how to measure would be interesting A posting on how to measure would be interesting

]]> By: Rebekah http://www.marketingroiordie.com/2009/10/04/the-softer-side-of-marketing-roi/comment-page-1/#comment-21 Rebekah Wed, 07 Oct 2009 15:57:53 +0000 http://www.marketingroiordie.com/?p=248#comment-21 <a href="#comment-17" rel="nofollow">@Urs E. Gattiker </a> Hi, Urs. What I shared was not measurements of soft ROI but activities of soft ROI. I felt that explaining the activities was of benefit to allow people to understand what it is and how to perform it. Perhaps I will now do a posting on how to measure it. :-) Best, Rebekah @Urs E. Gattiker

Hi, Urs.

What I shared was not measurements of soft ROI but activities of soft ROI. I felt that explaining the activities was of benefit to allow people to understand what it is and how to perform it. Perhaps I will now do a posting on how to measure it. :-)

Best,
Rebekah

]]> By: Rebekah http://www.marketingroiordie.com/2009/10/04/the-softer-side-of-marketing-roi/comment-page-1/#comment-20 Rebekah Tue, 06 Oct 2009 16:45:50 +0000 http://www.marketingroiordie.com/?p=248#comment-20 <a href="#comment-19" rel="nofollow">@Ben </a> Hi, Ben. I used the egg example as a way to show why spending time on intangibles is important. If a farm used these soft ROI activities, I would spend more money with them than on other eggs, go out of my way to seek them out, would advocate them to others, and would be loyal to them because they are in alignment with my belief system. The "new branding" that you speak of, is exactly this...people are looking for companies that are in alignment with their belief systems. Best, Rebekah @Ben

Hi, Ben.

I used the egg example as a way to show why spending time on intangibles is important. If a farm used these soft ROI activities, I would spend more money with them than on other eggs, go out of my way to seek them out, would advocate them to others, and would be loyal to them because they are in alignment with my belief system. The “new branding” that you speak of, is exactly this…people are looking for companies that are in alignment with their belief systems.

Best,
Rebekah

]]> By: Ben http://www.marketingroiordie.com/2009/10/04/the-softer-side-of-marketing-roi/comment-page-1/#comment-19 Ben Tue, 06 Oct 2009 11:07:10 +0000 http://www.marketingroiordie.com/?p=248#comment-19 Hah!! "soft ROI" sounds like the new "Branding"! As a both business owner and marketing guy, I'm very apprehensive of spending time and resources on marketing efforts whose outcomes can't be measured. When there are more strategies that produce measurable results than most business owners will ever have time or money to execute, why spend any time on intangibles?? Enjoyed the post. Ben Hah!! “soft ROI” sounds like the new “Branding”! As a both business owner and marketing guy, I’m very apprehensive of spending time and resources on marketing efforts whose outcomes can’t be measured. When there are more strategies that produce measurable results than most business owners will ever have time or money to execute, why spend any time on intangibles??

Enjoyed the post.

Ben

]]> By: andrew weir http://www.marketingroiordie.com/2009/10/04/the-softer-side-of-marketing-roi/comment-page-1/#comment-18 andrew weir Tue, 06 Oct 2009 08:44:25 +0000 http://www.marketingroiordie.com/?p=248#comment-18 Thank you for articulating this important distinction. The challenge for me is that the effect of operational actions (soft ROI) are becoming increasingly more important but harder to track. In my view, stuff like engaging consumers, sharing values, providing experiences are very powerful ways to drive business (by helping to increase loyalty and advocacy), but are often placed in the 'too hard to measure' box so not executed. Thank you for articulating this important distinction. The challenge for me is that the effect of operational actions (soft ROI) are becoming increasingly more important but harder to track. In my view, stuff like engaging consumers, sharing values, providing experiences are very powerful ways to drive business (by helping to increase loyalty and advocacy), but are often placed in the ‘too hard to measure’ box so not executed.

]]> By: Urs E. Gattiker http://www.marketingroiordie.com/2009/10/04/the-softer-side-of-marketing-roi/comment-page-1/#comment-17 Urs E. Gattiker Mon, 05 Oct 2009 18:18:52 +0000 http://www.marketingroiordie.com/?p=248#comment-17 Dear Rebekah I like this post very much since it points out the qualitative and quantitative issues. Nonetheless, if I may you will allow me to point out that ROI is really a financial outcome or as we put it: The ROI is the final outcome or scoreboard but it fails to explain how we got there - the operating metrics http://commetrics.com/articles/implement-5-tips/ You state: "Engaging people as part of something larger then themselves. Making people proud of who they are and their values..." Are these the financial outcomes or possible operators that might have an effect upon the company's bottom line? I find that these cannot be soft ROI but instead are moderators that surely effect the financial outcomes.... What you think am I totally off the mark? Dear Rebekah

I like this post very much since it points out the qualitative and quantitative issues. Nonetheless, if I may you will allow me to point out that ROI is really a financial outcome or as we put it:

The ROI is the final outcome or scoreboard but it fails to explain how we got there – the operating metrics

http://commetrics.com/articles/implement-5-tips/

You state:

“Engaging people as part of something larger then themselves.
Making people proud of who they are and their values…”

Are these the financial outcomes or possible operators that might have an effect upon the company’s bottom line? I find that these cannot be soft ROI but instead are moderators that surely effect the financial outcomes….

What you think am I totally off the mark?

]]>