Let’s start by pointing out the elephant in the room. As much as we like to talk about Return on Marketing Investments (ROMI) being a critical metric for marketing success, very few organizations really calculate this metric; I mean really calculate it. It’s not that ROMI is such a difficult concept, it’s the fact that linking return to the investment is just plain difficult, especially in aggregate. The truth is, most CMOs have a general sense for what’s working and what’s not with respect to overall marketing spend – thus, overall ROMI is calculated with experience and intuition (not on a spreadsheet or in a system).
Don’t get me wrong, I have worked with companies that do a fantastic job measuring the success of marketing investments. Caesars International for example had some of the most impressive segmentation, targeting, and offer optimization I have ever seen. They can serve offers and adapt in near real-time based on demographic attributes,...




