Marketing Roi : The Path to Campaign, Customer, and Corporate Profitability

Acknowledgments ix Introduction xi PART I UNDERSTANDING ROI PRINCIPLES CHAPTER 1 PROFIT IS THE GOAL, ROI IS THE MEASURE 3(16) Are We Ready for Marketing ROI? 4(4) The Power of Marketing ROI 8(2) Shortfalls in Alternative Marketing Measurements 10(1) Addressing Profit Pressures 11(2) Marketing ROI: The Next Wave for CRM 13(1) Understanding the Key Challenges 14(3) Yes, the Time Is Right for Marketing ROI 17(2) CHAPTER 2 GETTING THE ROI BASICS 19(14) Key Financial Concepts 21(3) Defining Incremental Value 24(2) Point-of-Decision Perspective 26(2) ROI by a Different Name 28(5) CHAPTER 3 MARKETING ROI IS DIFFERENT 33(6) Marketing Has Greater Flexibility 34(1) Incremental Measures Go Further 35(4) CHAPTER 4 MORE MEASURABLE THAN EVER 39(8) Technology Simplifies the Measures 42(1) Privacy Issues 43(1) Determination Counts 44(3) CHAPTER 5 MARKETING ROI PROCESS 47(6) Part I Conclusion 50(3) PART II BUILDING THE ROI FORMULA CHAPTER 6 MEASURING RETURN ON INVESTMENT 53(18) Calculating the Return 54(4) Calculating the Investment 58(6) Where ROI Measurements Go Wrong 64(2) Customer Lifetime Value vs. ROI 66(5) CHAPTER 7 INVESTMENT AND RETURN PATTERNS 71(16) Acquisition Marketing Patterns 71(4) Retention Marketing Patterns 75(6) A Look at Customer Loyalty 81(2) Cross-Sell Marketing Patterns 83(4) CHAPTER 8 PROFIT DYNAMICS AND KEY PRINCIPLES 87(26) Retention Marketing and Acquisition Marketing: A Head-to-Head Comparison 88(7) Key Principles for ROI 95(1) Aligning Measures with Decisions 96(1) Establishing Financial Measures for Strategic Initiatives 97(2) Accurate and Complete Accounting of ROI 99(1) Keeping Performance Metrics in Check 100(4) Taking Residual Value into Consideration 104(4) Part II Conclusion 108(5) PART II APPLYING MARKETING ROI CHAPTER 9 ADOPTING THE MARKETING ROI PROCESS 113(12) Putting Marketing ROI to Work 115(3) The True View of Marketing ROI 118(7) CHAPTER 10 MANAGING CORPORATE-LEVEL PROFITABILITY 125(24) Executive Responsibilities 126(1) Standardizing the ROI Formula 127(15) Setting the ROI Threshold 142(2) Setting Marketing Budgets 144(1) Monitoring and Modifying Marketing Budgets 145(1) Aligning Performance Rewards 146(3) CHAPTER 11 MANAGING CUSTOMER PROFITABILITY 149(14) Division Manager Responsibilities 150(1) Multilevel ROI Measurements 151(5) Mass-Marketing Measures 156(7) CHAPTER 12 CUSTOMER PATHINGTM STRATEGIES 163(10) Managing Budgets 170(1) Research, Development, and Benchmarking 171(2) CHAPTER 13 MANAGING CAMPAIGN PROFITABILITY 173(36) Marketing Manager Responsibilities 175(1) Preplanning Research and Intelligence 176(10) Campaign Innovation and Screening 186(3) Market Testing 189(2) Results Analysis 191(7) Strategic Decisions 198(7) Customer Pathing Checkpoint 205(4) CHAPTER 14 THE MEASUREMENT PROCESS 209(14) Insight for Smarter Decisions 210(3) Types of Measurement Processes 213(6) Data Integrity 219(4) CHAPTER 15 STRATEGIC PROFIT MANAGEMENT 223(16) Customer Segment Investment Strategies 224(4) Managing the Marketing Investment Portfolio 228(5) The Marketing ROI Control Panel 233(6) CHAPTER 16 THE IMPLEMENTATION PROCESS 239(12) The Cross-Functional Team 242(2) The Role of Technology 244(2) Low-Tech Solutions 246(1) The ROI Champion 247(1) First Steps to Greater Profits 248(2) Conclusion 250(1) Notes 251(6) Index 257