ROI Is Dead. A New Metric Is Needed for Customer Relationships


The concept of return on investment came to prominence in the mid-20th century when marketers entered the age of mass media and large campaigns, and they began demanding to know the impact their ads were having on awareness and sales.

We are well into the second decade of the 21st century, and I would suggest that the era of ROI has come and gone, primarily because of the digital revolution that launched some 15 years ago. Through digital channels, we have powerful tools that can create highly personalized and emotive relationships between a brand and a consumer.

Marketers want to know even more about how effective their marketing is and its impact on customer relationships. A new metric is required in today’s complex ecosystem. I call it ROE2 (return on experience x engagement). ROI is a short-term measure of specific, individual campaigns. The more comprehensive ROE2 represents a longer-term, holistic measure of consumers’ total brand experience and their level of engagement.

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