Our Head of Business Science, Jane Christian, is a key contributor to the CIM's blog article on the steps required to measure ROI:
Review key metrics frequently
Recognise broader impact
Beware of 'digital measurability'
Understand absolute value
Know when to stop
Key takeouts include ensuring that you measure against all areas that the campaign will impact. For example, effectiveness is often focused solely on sales, however the campaign may have helped improve customer retention, so this should be measured too. It is also likely that a campaign for a key product will drive additional sales of other products, so this halo effect needs to be taken into account. Additionally, we find that on average, half the return is delivered in the long term, up to 2 years after the campaign. Measurement that only concentrates on the short term will not take account of the full impact. Finally, the focus should be on profit rather than revenue as a campaign with a small spend may deliver a large ROI whereas a campaign with a large spend will deliver a more modest ROI, but will generate more profit.