Marketing strategies aimed at enhancing sustainability inevitably entail long-term investments. Justifying such strategies can be tricky if the traditional return-on-investment measurements don’t allow room for application. As a business, you can measure many things including profit margins but you cannot measure everything. To get accurate results when you measure ROI of sustainability, you need to apply custom methods that allow you to review all possibilities. Measurements may prove difficult to apply, but with the following processes you could find it a bit easy.
Customer Lifetime Value is an important value in the measurement of sustainability that you must consider when preparing ROI statements. You need to assess the impact the retention of customers has on your business as well as what acquiring new customers could mean. Most successful brands adopt values that are sustainable, which allows them to get more customers.
These gains in new customers can be measured accurately if viewed in comparison with the benefits loyalty would bring to the business. If your consumers believe in your brand, you could easily measure their behavior and attitude then pick useful information that could help you while designing marketing campaigns. The most important bit is to get the most accurate information and this can only be done through studying the behavior of customers.
This is another way you could measure the RROI of sustainability for your business. The measure is inextricably linked to the idea that by doing well, the business is able to perform better. Basically, it is a good way to measure whether the business has been offering value to the market. A company that employs the best talent is able to give exceptional products and this goes a long way to raising customer loyalty. Many customers want products that are different and useful, which is what having good talent allows you to produce. You can measure this by simply including questions about business practices that are sustainable during employee satisfaction surveys and appraisals.
Sustainability could also epitomize the reputation of a company, according to a report published by the Reputation Institute. This is why some successful companies like BMW have remained at the top in the global market. Measuring reputation against ROI are two sides of a coin that must be handled differently. However, they are interdependent, so the more reputation the company earns, the more its ROI moves. Some of the ways companies could measure the impact of reputation on ROI include using real-time methods and survey-based measurements and bring out shared-value initiatives. An easy option for measurement could be using social media monitoring tools that give information about the performance of the brand and the general perception in the market.
It is also important for marketing teams to analyze specific programmes and initiatives for efficacy using custom-designed metrics. Instead of focusing on subjective measurements like customer attitude data and brand behavior, marketing teams could view ROI needs with results specificity. Questions like how healthy ingredients have contributed to lower obesity could be used to derive the real meaning of the ROI achieved by the business.