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Jon W Chin
Singapore
Naturally curious marketer who is in love with Analtytics, SEO/SEM, Social Media,
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Thanks for the response, Phil. Very interesting... My thoughts...here you go. 1. re: "profit-based ROI goal" - how to calculate profit ROI - i dont know (but I'm keen to investigate), that aside... On a slightly different note, but what I can foresee it might be rather tough - involving time-series and longitudinal approach - not so much from a technical point of view i stress but more from company's point of view - time is a factor? most often then not, people in the position of authority (at that point in time) would not be in that position long enough to "wait". oh well. I might be wrong. 2. re: "quantification of objectives" - yeah i would recommend companies do just that - quantify their objective and define it explicitly - they need to know exactly what their objectives are. Which brings us back to the eskimon's tools point, companies sometimes pay too much attention to the 'tools' and forget the fundamentals. Get your basis right and know exactly what you seek to achieve :) 3. Re: "let's say your goal is an ROI of 20% (and that you have found a way to calculate that on an aggregate basis), how do you break that down across different channels?" That's a good one, in my head i was saying "can one calculate that?" haha. I will look at the weightage. Most often then not, alot of companies are rather short sighted (though they say they think long term, ok not all Ive seen some who walk the talk) :) Some campaigns can only see their TRUE effect after a period of time imo. 4. re: "Each medium could deliver something - and each could have a role and an objective. But could a campaign still fail even if each and every medium played their roles and delivered against their objectives?" well strictly speaking, if you had crafted out the objectives and met those objectives, technically (against those objectives) you have succeeded but I do see your point. :) having those objectives gives the company an idea of their start and end point and hopefully garner some invaluable insights. Across the mediums, there will be cases of one medium performing better than the other but hey that's the job of the consultant (or agency or even the client) to know (based on research or perhaps even gut feel) - business is risk-taking after all :) 5. re: "art and science" - interesting that you pointed out that art and science may not necessary be at the opposing ends but literature (and verbal) depicts that very picture (unfortunately). It has always positioned art and science as opposing ends and as such, it has naturally 'conditioned' us to think that way in my view. Indeed, a fair number of questions on ROI, but hey its fun! and very real. Its the number ONE term that pops up in meet-ups (actually all) :) Best, Jon
Toggle Commented May 25, 2009 on does ROI still matter? at marginally subversive
1 reply
Great write-up! This has been a topic that have been 'bugging' me of late. Its amazing that time and time again, people talk about ROI and only ROI. It seems that it is the holy grail of all measures in campaigns. This is something I said in twitter to 2 great guys "hmm..could ROI be just a "phantom number" that does not reflect the true net profit of the campaign?" Could the above hold water? Really could it just a phantom number? What is really success? success in the short term or success in the long term? please define success (opps the theorist in me is surfacing :) ) eskimon is spot on about them being tools that offers a means to an end and William also made a valid point about RO (Objectives), this could very well be the measure one undertakes and it could work better. Maybe, maybe not, I don't know but at least it clearly gives a measureable response to the firm's stated (and identified) objective. Perhaps my two cents worth is the following approach. 1. Get to know the targeted customers more intimately (know how they interact in the online and offline space) - what makes they tick (how and why) 2. What is your organization's objective? is it to increase brand recall, to sell more products? to get this customers to be your walking advertisement? - Then perhaps use a RO (objective) to measure your objective. 3. Strategize, think of the end point first and then work towards it. Last but not least, then 4. Engage tools to execute/enable the strategy and fulfill the said objective - bringing back to the point eskimon said tools are just a means to an end. William - as of whether it is being an art or science, well could this question shed some light? Q. Do you marry for love or do you marry for money? A. (From me anyways) - I reckon the question is flawed to begin with, it should read as "to what extent do you marry for love and to what extent do you marry for money". Apply that to marketing and (also ROI):) Best, Jon
Toggle Commented May 21, 2009 on does ROI still matter? at marginally subversive
1 reply