Measuring ROI for Tire Marketing on the Internet
2010/07/21 Leave a comment
Calculating virtually any ROI related to tires is tricky, whether we look at capital investment in manufacturing facilities or at marketing investment needed to succeed in competitive global markets. Here we look at ROI measures for internet marketing.
The tire market has dramatically changed over five years and competitors have innovated considerably and placed significant price pressure on traditional manufacturers in the USA, Japan, Italy and France. But what happens when everyone does the same thing?
Typically leading companies quickly learn to use internet marketing to speed up going to market with new products and eventually other companies follow. In tire markets however it appears there is plenty of room for improvement as SEM or search engine marketers may or may not employ SEO or search engine optimization or if they do, marketing programs are not synchronized with traditional marketing to make them effective. Beyond this general observation we have the problem of how to measure ROI.
In my experience ROI requires two type of measurements, the first related to our starting point before making an investment and the second after the investment has been made helps determine whether we achieved our ROI expectations.
A tire company that employs Internet marketing expects increased sales though it is difficult to identify the incremental sales directly related to the investment in Internet marketing tools and solutions. We have worked with our clients to create measures that provide ROI perspective measures to complement precise measures traditionally used in ROI calculations.
One class of ROI measures that I can share are SEO Index measures that we take before any ROI project starts.
SEO INDEX MEASURES
We use our SpeedSynch product to identify and measure keyword themes;
- used to describe products to customers
- found in web and social media sites
- that describe customer behaviours
This is a SpeedSynch map of keyword themes and relationships of a tire company–
* Note: Click on map once or twice to enlarge in a separate browswer window.
Twitter and Facebook keyword theme maps help us assess alignment of products, web and social media sites and customer behaviours for effective Internet Marketing, SEO or SEM programs. Contact us about creating maps for your company.
It is the before and after comparison of keyword themes and relationships that allow us to effectively evaluate the success of our Internet marketing investment by adding perspectives that are not possible by simple numerical calculations. This is done by simply measuring the alignment of keyword themes above before an investment and then afterwards. Our clients also do the same analysis with three to five competitors to determine how the investment has affected their relative competitive market position.
THREE STEPS TO IMPROVED ROI PERSPECTIVES
- Assess the value created by the investment and create a first pass ROI number–this is traditional ‘precise’ ROI.
- Measure the new alignment of keyword themes of products, web and social media sites and customer behaviours.
- Repeat measures for three to five competitors if appropriate
A PRACTICAL ROI
This approach to ROI provides a richer perspective and the actual results of the keyword theme analysis can be used for both SEO or search engine optimization and SEM or search engine marketing.
Here we measure ROI as we work rather than devoting resources to measuring and pulling people away from productive work.
Suggestions and questions are welcome and we are happy to provide specific examples of our unique project approach where we design, build, test and train in parallel rather than a traditional waterfall approach.