ROMIDASHBOARD

Measuring and Improving Return on Marketing Investment with actionable dashboards: which marketing actions yield most returns in fast moving economies?

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 Obiettivo del progetto (Objective)

'Driving profitable growth is the No.1 priority of companies and their leaders across the world. While many look to marketing as a prime responsible for creating and sustaining that growth, they are often disappointed in the ability of marketing managers to deliver on the promise. Faced with increased pressure from demanding customers, powerful channel partners and activist shareholders, companies need to measure the return on their marketing investments (ROMI) so that they can make informed decisions to achieve their business objectives. In particular, the development of econometric marketing mix models enables organizations to achieve competitive advantage and increase profitability through ROMI based marketing. Recently, organizations have began to summarize ROMI insights into marketing “dashboards”, with 40% of large US and UK companies report substantial efforts in this area. Unfortunately, current dashboards often fail to live up to their promises because they simply identify performance metrics and offer descriptive data on their progress: they do not establish empirical relations among the metrics, perform forecasting and what-if analysis and link them to financial consequences. This research proposal sets out to do just that for both mature and fast moving European markets. The research objectives are: 1) to empirically model how marketing actions (such as new product launch, (re)branding, pricing, adding new channels and communication activities) drive firm top-line and bottom-line financial performance; 2) to develop new dashboard tools based on this model to aid policy makers in organizations improve their return on marketing investment; 3) to compare and contrast the calculated return on marketing investment in fast-moving economies versus mature markets in Europe and the US. These insights will derive models, dashboards and case studies, and be communicated through both an academic paper and a practitioner-oriented book.'

Introduzione (Teaser)

Companies around the world improve the measurement of return on marketing investment (ROMI) with a new tool. Both emerging markets and mature markets can use the newly created actionable dashboard as a way to measure business performance.

Descrizione progetto (Article)

A dashboard provides key performance indicators measuring investment. Items that are included are summaries and key trends, along with comparisons and exceptions to help businesses measure investment.

The EU-funded project ROMIDASHBOARD set out to accomplish three objectives. The first was to empirically model how marketing exploits drive financial performance in companies. The second objective was to use the models to design dashboard tools for aiding policymakers to substantially improve their ROMI. The third was to see how emerging markets differ from mature markets, and then compare the two to see how the marketing investments differ.

Project results show vast differences in fast-moving markets versus older, more established markets. The differences in the two are largely marked by distinct customer attitudes. The dashboard tool tracks these two dissimilar markets in the marketing dashboard, enabling decision makers to improve the return on investment.

Clear impacts of this project are: two companies made drastic budget changes with this new information, successfully changing their budget allocation; and a small to medium-size enterprise changed its marketing budget size, improving their profit margin, and additional employment opportunities were created for the management of the dashboards.

A researcher and student assistants from three universities were employed for this project. Seven EU researchers advanced their careers through this project, and publications on the research topic disseminated the exciting results. The resulting website and book publication further expound the subject.