Monday 16 September 2013

Why ROI and ROE should be treated equally

Successful campaigns often address both short and long term goals…

A recent article on Marketing Week has suggested that many brands fail to budget for long-term innovation and relationship building. It’s the tired battle between return on investment (ROI) and return on engagement (ROE) that looks a little like this:

ROI: “ You can’t prove engagement. ROI provides a clear bottom line for marketers to
justify campaigns by.”


ROE: “You can’t have sales without engagement. Short-term campaigns are too narrow-minded, everything should have a long-term focus.” 



We think these arguments are both right and both wrong at the same time. Too many brands wrongly assume that the two are independent – that you can’t provide ROI and ROE simultaneously. In reality, successful communication should aim to achieve both short and long term targets.

Relationships are required to make sales; meaning long-term relationship management should be a high priority for communicators. But sales don’t just happen; short-term push campaigns are also vital to securing investment.

Long-term and short-term goals needn’t compete with one-another. It’s time for brands and communicators to end the debate and call it a tie…

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