Case Study on Marketing Return on Investment (M-ROI)

When You call City, What are things that strikes first into your mind ? Traffic,Pollution,Population Beggars, Food stalls,Auto Rickshaw,Buses Cabs,Shops,Buildings and the life line of Metro cities "Train". We people are now used to of most of things from the above list, without or absence of which give us the feeling of missing something as in part of our day- to- day lives.

Here in above i said "day-day to live" i.e. means things which we are facing without fail on daily some of the people especially from city like Mumbai consider as "Life". And give life to the Concept of using media in the most appropriate manner to get maximum return on investment. This Concepts are mainly known as ATL (above the line) and BTL (below the line) Marketing and the Mix of the both this strategy is termed as TTL (through the line).The term "Line" has coined for the purpose to measure the spends and earnings of the two different kind of strategies for product promotion.

Today, Marketing Professional has experimented and adapted all kind of medium available,in and around of our surrounding which we can see, touch,feel and interact with them on regular basis. Apart from the TV,Radio and online marketing. you just observed your surround and list the product which you have seen in one day irrespective of your journey. This act of Branding is become the necessity of an organisation to run and survive in this competitive world. Place your "ad" at best location and enjoy the most Brand Recall which ultimately help you to fetch good marketing return on investment i.e. your successful M-ROI.

I still remember one of interview with one of the leading jwellery brand in India with reasonably known and beauty pageant won actress as Brand Ambassador to endorse there Brand. That, Gentleman, The  MD of the Brand had ask certain basic question on the marketing and past work experience which i had shared with him very swiftly. When, he started explaining me about the spend of marketing which i though was huge for Brand like him.After listening to him very clearly. I had asked him question about this marketing Spend that " How do you measure your M-ROI on the activities your doing through various medium". That gentleman has smiled and asked me return question." Have seen our ad on TV, Did you know about our Brand before coming to interview. I replied, "Yes" & also name their Brand Ambassador. He said," That's it. My work is done. if you recall my brand and product you will surely buy one day for your loved one" and that Came true when i bought my wedding ring from same brand. it wasn't intentional but it happened. So, This way he got his M-ROI doing the immeasurable Marketing Spends.

We have lot to talk about but in this session we conclude here. 

eM-ROI - Email Marketing Return on Investment (M-ROI)

Beginning with latest news from the world Marketing, As we all know that "e-mail" has turned 32 years old, on last 30th August. This process or method of transferring message was invented by Indian born Mr.V.A.Shiva Ayyadurai in the year 1978. Since then Email has transformed and got better and better with technology in last 3 decades. And now in today's World, Email has become part of our day to day life.

If we look at our mail's then more than 90% of our mail box is flooded with the some of the other marketing mailer with various kind of offers,discounts,banking or financial products or new product launch mailers. This proves that email has become primary source of communication from all the big MNC's to the SME's to Local Brand.

Due to heavy cost and efforts involved in the conventional communication techniques like printing,hoardings and distribution of materials, Many organisation has started changing their approach towards the cheaper and effective means of communications. And, Email is the only answer to all their needs of Simple,Effective,Measurable and Direct Communication.

Why and How is the email Marketing evolve ?

Due to its Simplicity and effectiveness many organisation has adapt the emailing as the primary marketing activity to communicate to their targeted clients on regular basis which also becomes the great way to increase their direct sales with the lowest possible cost.if you look at your inbox which may have Retail to Pharma, Food to Accessories, Banking to Aviation mailers from different sectors has accepted email marketing as their major activity for Marketing Communication.

Though, It is the cheapest way of communication but it incurred cost to the organisation. An email can starts from few paise to ruppes and when you use as marketing tool these cheap rate may incurred cost from thousand to lacs of ruppes for per campaigns which is ultimately depends upon your size of the Target.

Now, When there is Investments, we always starts measuring Return on it.Here in email marketing organisation have advantage to measure their communication and actual effectiveness of their campaigns.

There are few factors or tools which are associated with email Marketing to measure the impacts are-:

1. Sent
2. Delivered
3. Open
4. Click
5. Unique Open
6. Unique Click
7. Bounce
8. Abuse
9. Forwards
10. Open Ratio
11. Open to Click Ratio
12. Click to Lead Ratio
13. Conversion
14. Cost per campaign
15. Cost Per lead
16. Cost per Conversion

By using the above factors associated with email Marketing one can easily derive the Return on Investment for any campaign used for Product,Business Units or Product line or general branding campaign which is other way very difficult to measure (except online marketing).

Email campaigning success and failure varies from sector to sector, organisation to organisation, Product to Product and the method of creation of mailers and the service provider of the organisation.So, eM-ROI varies with the factors associated with it.

eM-ROI termed includes the components such as-:

1. Cost per email
2. Audience Size
3. Cost of the Campaign
4. No. of Respondents
5. Cost Per Respondent
6. Revenue Generated
7. Profit

M-ROI

Now, You need to use all the above into the mathematical formula to calculate your eM-ROI which ultimately proves the efficiency and effectiveness of your email Marketing campaigns.Try and use as per your business needs and analyse,enhance and maximize your current eM-ROI. 

Few things on Marketing Return on Investment (M-ROI)

M-ROI termed in early 90's as all organisation started spending on Marketing to Build a Strong Presence in the Consumer Mind Set. If you remember, This was time when all the Big and small brands were invested into the television ads and other mediums of Promotion.You take name and you will find their ad or banner,poster on hording or wall. The media fraternity has enjoyed  their golden era at time.Big stars like Amitabh B, Sunil Gavaskar, Sachin Tendulkar were signed as Brand Ambassadors for so many Indian and International .Since then Marketing Spends has been rising for 2 decades Now.

Today, As the Marketing Spends has been raised drastically when it compare's with 90's Marketing Spends ,the Return on the investment has also increased including other factors cut throat competition, Impact of Global Economy,Regulation by Government and the Social Media or Digital Media Revolution.Here, Adaptation of M-ROI will help any organisation to build a strong Brand that can generate improved Rate of Return.

M-ROI is Simple to calculate & effective to measure the contribution of Marketing Investment’s.M-ROI Can be used for Product,Services,Market,Special Business Units and also for Line of Products.