Posts Tagged ROI

What’s your ROI?

Posted by on Tuesday, 11 March, 2014

What's your ROIMy first marketing lecturer, Dr Mario Miranda, taught me the relationship between price and quality. His example was a Waterman pen versus a Bic disposable. While my tastes are more Mont Blanc, the premise stands. Why do we choose Apple, Nordstrom and Mercedes Benz?

Why don’t we apply the same premise to ourselves? What’s your ROI? Does your price equal your quality?

I was chatting with a colleague last night about clients wanting expert work done at junior rates. We’ve all encountered it, “I’d love to hire you but [insert name] is $500 cheaper.” On eLance, I’m asked to pitch for work at hourly rates lower than the minimum wage in that country. The RFPs are filled with “expert” and “top performing”.

As marketers, we have a choice to make. We can take the work and discount our rates, or we can walk away. We can decide if we see ourselves as a Kia or a Mercedes Benz. In other words, what’s your ROI?

I know you’re thinking, “There’s more to the job than money, Bianca”, and I agree. Sometimes it’s a job title, resume points, or brand names that make up the difference. I’m doing some work currently that gives me studio photography experience. But that’s part of the ROI calculation. I gain experience and a small amount of cash; they get product photography.

It’s when the returns don’t equal or exceed investment (in this case you) it harms the entire industry. Precedents get set, your price goes down and you turn from Apple to Samsung. It’s hard to recover from this, and near impossible if it’s across the industry.

Yes, this was written as a vent over a recent situation, but also because walking away from a particular project was one of the hardest things I’ve done. The ROI figure just wasn’t a good result and saying yes now will mean it gets pushed further and further with each contract renewal. I hope I’m never in this situation again.

What Makes a Good Facebook Post?

Posted by on Saturday, 24 November, 2012

How can you decide if a Facebook post is worth posting?

Use a Post Engagement Model, like this:

good_facebook_posts

A good facebook post will be in the top right quadrant. It will score high engagement AND high direct response (sale or actions depending on the product or business).

But how do you define what’s high engagement and high direct response? It’s tricky and depends on your business. I’ve chosen vacation markets for my hypothetical data and am really making unfair comparisons; 2,000 comments for one market may be amazing, but only average for another.

The solution is to standardize your markets or products. Track the engagement and direct response results for each market or product over 30 days to discover the average likes, comments, shares and your direct response metric. If you have data for a longer period, awesome. Anything shorter may not be indicative enough, but is definitely a good start.

Using the mean as 50, score the results out of 100. There’s no science here, so make it fit your business. If you’re not interested in shares, don’t use it. If clicks grab your attention, add those.

Merge the engagement metrics (average them? It’s up to you), and graph against a standardized direct response metric. Now you have something to reference when deciding between New York City and Hawaii.

(disclaimer: I work for Expedia, but this is fictitious data)

Simple Marketing in a Cafe

Posted by on Friday, 26 August, 2011

Marketing-in-a-CafeI stumbled upon this piece of marketing genius today. It’s from a New York cafe and I doubt the barista behind it understands what they’ve done.

This marketing in a cafe concept covers everything needed for a successful campaign: it’s original, clever, measurable and gives a great return on investment.

What was it? Two paper cups and an index card forming a tip jar. On the card it said, “Who would win in a fight?” and each day the options change. Star Wars versus Star Trek. King Kong versus Godzilla. The list continues. To vote, customers put their tip in their predicted victor’s cup.

Would you tip more to prove Dumbledore can defeat Gandalf?

Check out the original Tumblr post here.