It’s time to alter how you measure success
Your company’s one metric that matters (OMTM) should not be roi (ROI), return on ad invest (ROAS), net promoter rating (NPS), brand affinity or among the other sophisticated-sounding acronyms online marketers utilize to assess success.
Your company’s one metric that matters need to be long-term profitability.
Put another way, your company must be singularly focused on just how much money it can return to its financiers, shareholders and owners. Sounds obvious, ideal?
You ‘d be shocked: A bulk of Fortune 500 and Silicon Valley startup marketing budget plans aren’t optimized for long-lasting success.
Instead, budgets are frequently enhanced for secondary or upper-funnel metrics. Tracking ROI, Brand name, nps and roas affinity, numerous online marketers keep an eye on essential performance indicators (KPI) like net income, customer acquisition expense (CAC), cost per thousand (CPM) and brand recall– none of which directly correlate with long-term profitability.
In fact, numerous brand names’ marketing departments regularly omit the word “revenue” completely from the line items and KPIs in their month-to-month efficiency reports.
A great way to consider the futility of the KPI status quo is the following imaginary scenario, which shows the advertising and marketing playbooks of a shockingly large sector of American companies: Main Street Shoes spends $100 on a Facebook ad campaign to promote a brand-new line of sneakers to Jack and Andrew. As an outcome of the retailer’s Facebook advertising campaign, Jack and Andrew each spend $100 to buy new sneakers.
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.