- Posted by Adam Smith
- On July 1, 2018
I recently read an interesting article about how firms can calculate the Return On Investment (ROI) of their PR and marketing campaigns.
The piece started by considering the most basic form of ROI calculation which involves deducting the marketing cost from your business’s sales growth then dividing this by the market cost. So, if sales grew by £500 and you spent £100 on marketing then this represents a 400% in sales.
However, the article pointed to the fact that this calculation was problematic because it assumes that month-on-month sales growth is solely down to the marketing campaign whereas there may be other factors at play.
It suggests looking at the 12 months prior to the start of the campaign and calculating the existing sales trend before stripping this out of any further sales growth after the campaign begins.
However, even this is not necessarily an accurate reflection of how the campaign has impacted sales because the effects are often not immediately quantifiable.
The article drew three conclusions which are worthy of particular mention, namely:
- The impact of your PR work can take time to show, with an ROI often not appearing for several months.
- Although PR is ultimately about increasing sales, it’s also about brand awareness, reputation and perception. Get this right and in the long run the money will follow.
- Any financial advice business wishing to increase its client base needs to be marketed. Depending on the number of new clients you need, word of mouth referrals are generally not enough.
Having spoken to several advisers about how much time they devote to marketing their business, it’s clear that it’s not enough as they’d like to! This is not through a lack of desire, it’s simply a question of time and priorities.
Giving adequate attention to PR and marketing is something very few advisers can afford to spend their time doing. This means they could be missing out on potentially valuable clients simply because they’re not getting their name out into the marketplace.
This can easily be addressed through a tailor-made PR solution for your business and budget and ensuring newsworthy and relevant content about your business is disseminated through the appropriate channels.
Increased revenue is the ultimate goal of any PR/marketing campaign and it’s clear this can be measured in a variety of increasingly sophisticated ways.
Call Adam on 07543 195476 for a free, informal chat about your public relations requirements.