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ROI priorities ‘bottom of the pile’ for marketers

ROI priorities ‘bottom of the pile’ for marketers

Marketers are paying scant regard to return on investment (ROI) in a frenzied bid for new customer acquisition, with larger companies being the most wasteful.

That’s according to new findings from research carried out on behalf of, of Predictive

Analytics software and solutions company, SPSS.
Half of 100 marketing professionals surveyed said their key business objective when developing a new campaign is customer acquisition and retention.

Only five per cent cited ROI, suggesting marketers are overlooking important information when making critical campaign decisions in a harsh economic climate.

“Marketers seem to have lost sight of the budgetary and financial implications of marketing campaigns,” said senior vice-president of strategic analytics at SPSS, Colin Shearer.

“We are no longer in the boom times - all expenditure needs to be justified within the business to ensure value for money.”

Marketers are now being urged to take a more strategic approach when devising marketing campaigns.

The research also revealed that smaller companies are much more switched on to the need to measure ROI.

Sixteen per cent of marketers from a department of fewer than five people voted it their priority, compared with just seven per cent of those from a department of 50 or more.

Further to this, the research found that some marketers are making decisions based on instinct alone.

Seven per cent of respondents said they rely solely on gut feel to judge whether marketing activities meet their actual goals, rather than reviewing historical successes or assessing actual results.
“It is no longer enough to rely on instinct alone. To prove their worth and value to an organisation, marketers, like those at Saga, must be able to demonstrate the success of campaigns and prove the return on investment,” Shearer concluded.

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