2007 Marketing ROI and Measurement Trend Study Released

For Immediate Release

Los Angeles, CA, April 2, 2007 Companies that measure ROI improve performance and are better aligned with business objectives. This is demonstrated in spades in the third annual 2007 Marketing ROI and Measurements Trend study by Lenskold Group and MarketingProfs summarized in today’s issue of MarketingProfs Today.

Sixty percent of the companies that measure ROI expect to outgrow their competitors in the upcoming year, compared to only 48% who use no financial metrics. Plus, 81% of marketers who use ROI also report that they their CEOs and CFOs are confident that investments in marketing are profitable, versus only 57% for those who use no financial metrics to measure marketing.

The study focused on how marketers who calculate ROI or other profitability metrics differ from those who use only basic financial metrics or traditional, non-financial marketing metrics, such as response rates, awareness, or leads.

In general, this study shows that marketing professionals who measure ROI and profitability metrics apply diverse measurement methodologies more often, rely less on intuition for decision-making, and apply more data-mining and value-driven segmentation than those who do not.

The full research report will be released later this month. Other key findings include:

• Although more companies using ROI rate their ability to measure the financial contribution of marketing as “as good as it needs to be” or “a source of real leadership” (a combined 28% vs only 16% in 2006.), another 54% report are making progress but report their capabilities are still “somewhat short of where it could be.”
• 55% of all marketers believe profits can grow 10% or more if measurements were in place to drive marketing decisions and capture marketing’s contribution to incremental sales.
• B2C companies are further ahead of their B2B counterparts in measuring ROI and other financial metrics (29% vs 13%). This is actually driven more by the business model than the target customer. Those companies selling through a sales force, which is heavily B2B, are the least likely to be using ROI metrics (11%) vs. those selling through retail, mostly B2C companies, which are most likely to be using ROI metrics (39%).

“In recent years, we’ve seen adoption of ROI take hold in marketing and interest levels increase, as the initial success stories are motivating others to also make investments and expand their capabilities,” said Jim Lenskold, Lenskold Group President and Founder. “B2B companies started a bit later but seems to have a faster pace of adoption, potentially because best practices are more established. Clearly, combining measurement discipline, customer and sales analytics, and a solid ROI framework delivers the business growth and profitability performance companies are seeking.”

The final report is available at www.lenskold.com.

# # #

About Lenskold Group

The Lenskold Group has surpassed traditional mindsets and methods to develop the most comprehensive and innovative process to plan, measure, and optimize marketing strategies toward maximum profitability. The Lenskold Group has delivered high-quality consulting and marketing services to generate profitable growth for a broad range of client companies since 1997. Our team of accomplished professionals provides cohesive and comprehensive solutions in the area of marketing ROI process, measurements and analytics. James Lenskold is president of Lenskold Group and the author of the award-winning book, Marketing ROI, The Path to Campaign, Customer and Corporate Profitability (McGraw Hill, July 2003).

About Marketing Profs

MarketingProfs, founded in 2000, is a comprehensive learning site for marketing professionals, with more than 245,000 members worldwide. Drawing on the expertise of more than 300 analysts, marketing professionals, and professors, MarketingProfs helps marketers all over the world – from the very largest to small start-ups – stay current and effective in the entire range of online and offline marketing areas.

Free membership to MarketingProfs includes a weekly newsletter on current issues and ideas, as well as access to the site’s basic library. The site also offers more than 20 non-sponsored virtual seminars a year. Premium (paid) memberships include access to a vast Premium Library, podcasts, marketing templates, buyers’ guides, benchmark surveys, and marketing guides. For more information, see www.marketingprofs.com.

Contact

Sharon Hudson
sharon@marketingprofs.com
+1 310-734-4264

Christine Swanson
Lenskold Group
cswanson@lenskold.com
+1 732-223-8886