by Jim Lenskold
Marketing ROI: Playing to Win
How ROI fits within the Metric Hierarchy
As marketing budgets get leaner, the pressure is on to deliver more profits. To develop effective strategies for doing this, marketers need clear measurements. Unfortunately, measurements other than ROI are incomplete and can lead to misguided spending and lost profits. The ROI measure can account for all costs and the complete customer value to prioritize marketing investments and maximize profits. Other marketing measurements are merely performance indicators useful in improving the ROI of marketing programs.
The complete article organizes marketing metrics into 3 tiers and outlines how to use ROI metrics strategically. Click on the image to download the PDF of this classic article.
Published in the AMA’s Marketing Management magazine. Used with permission.