Congratulations on completing the MROI Calculator designed to take the gamble out of your marketing efforts.
Any number is only as strong as the lens in which you look at it. The definition of a “good ROI” can differ depending on the specific marketing strategy employed, the distribution channels utilized and the industry in question.
With this Marketing ROI in front of you, ask yourself two questions:
Is it greater than the industry benchmark? Are all of your measurable strategies generating the same ROI?
A generally strong benchmark is about 300 percent, or 3 to 1. But you can perform an even better analysis by comparing your marketing ROI to benchmarks. To evaluate your MROI compared to B2B benchmarks, use the chart below that compares the competitiveness of your space with your brand awareness or marketing maturity. For example, if you are in a highly competitive industry and have low marketing maturity, you would expect your MROI to be low.
Marketing maturity is defined as the level of development and sophistication of an organization’s marketing capabilities, strategies, and processes. Marketing maturity provides the framework, strategies, and processes that help establish and enhance brand awareness. As organizations develop their marketing capabilities and implement more sophisticated strategies, they can effectively communicate their brand message, reach their target audience, and ultimately increase brand awareness in the marketplace.
At the highest level of marketing maturity, organizations are constantly exploring and adopting innovative marketing approaches. They proactively anticipate market trends, consumer behavior, and emerging technologies. Marketing initiatives are highly agile, adaptable, and focused on delivering unique and differentiated customer experiences.
Organizations with low marketing maturity have basic marketing activities in place, but they lack a formalized marketing strategy or cohesive processes. Marketing efforts are typically reactive, inconsistent, and lack clear goals or measurement metrics.
The competitive landscape refers to the overall structure and dynamics of a specific market or industry, including all the competing companies, their products or services, market shares, and competitive strategies. The level of competition can influence how a brand is perceived, recognized, and remembered by consumers.
Key characteristics of a highly competitive market are numerous competitors, similar products or service, low entry barriers, price sensitivity, aggressive competitor marketing, narrow profit margins and rapid changes and innovation.
A low-competitive market is characterized by few competing companies, limited substitutes, pricing for maximized profits, band loyalty, high barriers to entry and a stable market structure.
There may be instances where an organization will fall outside of this scale due to, but not limited to:
- Transaction value. An industry with a higher revenue or transaction can have a higher MROI
- Age of company. In some industries, you may have low marketing maturity, but high brand awareness due to factors like the age of the company.
- Length of sales cycle. In a business with a sales cycle that is 12 or more months, a rolling ROI number should be used.
- Seasonality. An organization with strong seasonality in its industry will need to account for it appropriately.
- External events. Unforeseen external events, such as natural disasters, political changes, or health crises, will impact industries differently.
At RedRover Sales & Marketing Strategy, we understand how important it is to feel confident about your marketing investments. And our MROI Calculator and Benchmark Report is the first step. But our commitment to your success doesn’t stop there.
We invite you to take your marketing to the next level by joining our exclusive training “Your B2B Marketing Results-Guaranteed Plan” we created for mid-market companies just like you.
Watch this training and you will learn about proven strategies and best practices to maximize your marketing ROI. You’ll hear from industry experts who are committed to getting the best returns on their marketing investments, and they want to show you the strategies and best practices that they use.
Elevate your marketing today.