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Demonstrate ROE (return on effort)
A/E/C marketers often face an uphill battle when asked to demonstrate the ROI (return on investment) of any given marketing initiative. The same challenge exists for most business development efforts. The truth is, a new client or project is usually the result of many different touchpoints and activities over an extended period and rarely — if ever — the result of any one thing, thus making ROI a difficult thing to measure. In 2023, replace ROI with ROE (return on effort), as I believe it’s a much more helpful way to measure success and show results in A/E/C marketing and business development.
With ROE, the objective is to connect the dots of the work we do to the bottom line by demonstrate a cause an effect relationship between any marketing or business development initiative’s stated objective, goal, and target.
First, you define the objective by answering the question: How should this add value to the firm? (e.g. raise awareness of higher ed expertise) Next, define the goal of the initiative: What are the desired outcomes? (e.g. engage with key higher ed decision makers) And finally, set the target: What are the metrics for success? (e.g. email opens, clickthrough rate, page visits, downloads, etc.)
You can’t measure success without establishing goals and metrics for defining what success looks like in the first place. As management guru Peter Drucker famously quipped, “If you can’t measure it, you can’t improve it.” In 2023, aim to ensure that every marketing initiative — both digital and offline — has a specific objective, goals and quantifiable metrics that align with those goals. Establishing Key Performance Indicators (KPIs) will play a critical role in demonstrated ROE, while tracking the ongoing performance of your marketing and help you determine what’s working, what’s not working and where best to invest your firm’s resources.