It's time for management consultancies to be measuring the return on investment from their marketing
Gauging the return on investment of marketing activity is a fundamentally important metric for management consultancies looking to grow, yet many we meet struggle to know whether the time and money spent on marketing produces an effective return.
Many only measure short term metrics
(eg the number of people opening the quarterly newsletter, or "bums on seats" at the Budget breakfast), and at few is there any attempt to link income
from new clients to particular campaigns that originally brought them in.
It is a common problem, but it needn't be this way. After all, many B2B businesses have good metrics and a clear idea of the effectiveness or otherwise of their marketing spend. Similarly management consultancies are usually really rigorous in keep timesheets and measuring their recovery on a project. So, why should marketing be treated as a big unmeasurable cost - not investment?
Successful marketing is fundamental to your management consultancy's growth, especially when you try to break out of the partners' established network of contacts. But without some hard data you will not know whether, for instance, investing more will boost growth. Instead, discussions around effectiveness and budgets end up being dominated not by facts, but by war stories and gut feel.
Many consultancies under-invest through not having a clear idea of what return on investment their marketing is bringing. Their growth suffers as a consequence.
To help give partners the ammunition to start having better discussions about their marketing effectiveness, the metrics they need and, ultimately, its ROI, we are writing a series of blogs looking at different aspects and providing thoughts on ascertaining if your marketing activity is effective or not.
Our blogs in this measuring marketing ROI series include:
- Is my firm's website generating an ROI
- Is our PR working?
- Is my email marketing working?
- Are my firm's events worthwhile?
- Are our newsletters and content effective ?
- Is my marketing function generating a good ROI ?
These marketing ROI blogs can be accessed via this link. They are written for a range of professional firms, and especially with management consultancies in mind.
I hope you find them interesting and useful.