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Thursday, March 13, 2008

Marketing ROI and Return On Marketing Investment (ROMI) Book Reviews

After a two year hiatus, I am pleased to report that I am back to blogging. The topic today: brief book reviews for 'Marketing ROI, The Path to Campaign, Customer, and Corporate Profitability,' and 'Return on Marketing Investment, Demand More from Your Marketing and Sales Investments.'

Marketing ROI, by James D. Lenskold'

Marketing ROI aims to serve as a comprehensive reference for marketers to understand marketing ROI formulas and principles and apply marketing ROI.

In my opinion, this books is meant exclusively for senior marketers - marketing directors to VPs of Marketing - as well others in executive management, and primarily for larger Fortune 500 type companies.

The strengths of this particular book are its areas of focus on the foundation of marketing ROI principles, outlines of key financial concepts, identifying where ROI measurements go wrong, analyzing investment and return patterns - acquisition and retention, assessing ROI thresholds, reinforcing the marketing manager's responsibility for campaign performance, and reviewing issues that are prevalent within larger corporate settings.

This is worth the cost of investment, but additional information would be useful in any future editions - more detailed implementation tactics, strategies for small and mid-market companies, and emphasizing in greater detail the decision making trees for acquisition and retention, and direct marketing ROI forecasting.

Want to know if this book is right for you?
Here are some keywords from the book: ROI, profitability, formula, methodolgies, CRM, financial concepts, point-of-decision perspective, incremental measures, calculating return and investment, customer lifetime value, acquisition and retention, cross sell and loyalty, campaign metrics, marketing budgets, multilevel ROI measurements, benchmarking, market resting, customer segment investment strategies, the Marketing ROI Control Panel

Return on Marketing Investment, by Guy R. Powell

Return on Marketing Investment (ROMI) was developed to deliver tools and methodologies that tie successful marketing communications and sales programs together. It is meant for any sized organization, but will be particularly relevant to marketers at small to mid-market companies - marketing managers and upwards/director-to-VP and downwards/associates-to-coordinators -- as well as less analytics- and technology-driven companies.

The strength of this book is practicality, which translates into instant usability by the reader post-reading. The strongest sections and topics covered in the book are its program selection guide, its risk comparison overview for marketing tactics, its section on the appropriate allocation of funds between different marketing programs, sales alignment messages, and its ROMI Hurdle Rate Calculation Worksheet, and Return on Marketing Investment Calculation Worksheet. The examples given are also practical and extremely useful in "showing" the concepts presented.

The only suggestions I'd have for improving this book would be to present marketing ROI decision making trees, to look at benchmarks and present industry data, and to present a case study briefing on going from zero marketing ROI calculations to a successful implementation. A greater emphasis on the importance of research and marketing ROI forecasting would also be good.

Want to know if this book is right for you?
Here are some keywords from the book:
ROMI, accountability, measuring risk, hurdle rates, acquisition, retention, markting nirvana, calculation worksheet, expenditure, investment, yield, budgeting, hit rates, invest more or less, budgeting process, sales lead generation, risk factors, marcom programs, brand awareness, tradeshow, PR, direct mail, advertising, e-mail, telemarketing, telesales, contribution margin, fixed costs, competitive pressures, growing markets, costs for cost centers, cash basis vs. accrual accounting, tracking revenue and costs, sales feedback, tool, web, cross-selling

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