Return on Marketing Investment (ROI marketing) is a key indicator that measures the effectiveness of marketing expenditure by comparing the gains generated by advertising campaigns with the costs incurred to implement them. In other words, it measures the extent to which each euro spent on marketing activities contributes to generating additional revenue for the company. This indicator is fundamental to marketing budget management, as it helps companies to assess the profitability of their actions, identify the most effective growth levers, and adjust their strategies according to the results obtained.

In practice, however, measuring marketing ROI can be more complex. It’s often difficult to directly attribute a sale or new opportunity to a single marketing campaign, especially when several channels are used simultaneously (online advertising, social networks, emails, etc.). For this reason, it’s crucial to adopt a methodical approach and define clear metrics to evaluate the success of marketing actions.

In sectors such as banking, asset management and wealth management, marketing ROI is of particular importance. These industries are often associated with complex, long-term financial decisions, making the relationship between marketing and sales less direct than in other sectors. However, by using marketing ROI as an analysis tool, these companies can optimize their investments and boost the profitability of their campaigns.

Steps for calculating marketing ROI

1. Defining objectives: Before launching a campaign, it’s essential to define precise objectives. Do you want to increase sales, attract new customers, or raise brand awareness? These objectives will determine the indicators to be monitored to measure the effectiveness of marketing actions.
2. Cost tracking: It’s important to take into account all the costs associated with a marketing campaign. This includes not only direct costs (paid advertising, content creation, agency fees), but also indirect costs (marketing team salaries, software costs, etc.).
3. Measuring revenues generated: The most complex part of calculating marketing ROI is often determining the revenue attributable to a specific campaign. In a B2C context, this can be relatively straightforward if you track the sales directly generated by a link or promotional code. In a B2B context, or in sectors such as banking or asset management, the sales cycle may be longer, making it more difficult to isolate the impact of a particular campaign.
4. Calculating ROI: Once costs and revenues have been identified, marketing ROI can be calculated according to the formula above.
5. Analysis and adjustment: Finally, marketing ROI analysis enables us to evaluate the effectiveness of each campaign and adjust future strategies. If certain actions prove less profitable, it may be necessary to redirect budgets towards more effective channels.

How a bank uses marketing ROI

In the banking sector, marketing ROI is an essential tool for optimizing advertising spend and maximizing return on investment. Banks often operate in a highly competitive environment, and are faced with the need to attract and retain long-term customers. Marketing plays a key role in this process, but it’s crucial to ensure that each campaign adds real value.

Let’s take the example of a digital advertising campaign to promote a new savings account. The bank invests in paid advertising on Google and social networks to attract prospects to a dedicated landing page. To measure the marketing ROI of this campaign, it needs to closely monitor several metrics: the number of clicks on the ads, the cost per click (CPC), the conversion rate of visitors into customers, and the initial deposits made by new account holders.

If the campaign costs 50,000 euros and the new customers generate 200,000 euros in deposits, with a potential profit of 20,000 euros in management fees and bank interest, the marketing ROI of this campaign could be calculated. By evaluating this return, the bank can decide whether to increase or reduce its investment in paid advertising to maximize results.

Marketing ROI for an asset management company

In an asset management company, marketing ROI is used to assess the effectiveness of efforts to attract high-net-worth or institutional investors. Here, the sales cycle is often longer, as investors take longer to decide to entrust their money to a management company. As a result, direct attribution of revenues to a marketing campaign can be more complex.

Suppose the company launches a content campaign comprising webinars, blog articles and case studies on its sustainable investment performance (ESG). The cost of creating and distributing this content is 100,000 euros. Over the following year, thanks to this campaign, the company succeeded in attracting several investors who placed a total of 10 million euros in its funds. If the annual income from the management of these assets is 1%, this generates 100,000 euros in revenue for the company.

Calculating the marketing ROI of this campaign, the company finds that it has achieved a 0% return (revenues equal costs). However, as investments in these funds are often sustainable, revenues will continue to grow over the years, turning this campaign into a significant source of long-term profit.

Marketing ROI for a wealth management advisor

For a wealth management advisor, marketing ROI is an essential indicator for assessing the profitability of efforts to attract and retain high-net-worth clients. A typical example would be an email marketing campaign targeting potential clients with advice on estate planning or tax management. The advisor can track performance metrics such as open and click-through rates, as well as the number of appointments booked as a result of this campaign.

Suppose this campaign costs 10,000 euros, and enables the advisor to sign up three new customers, each of whom brings in 1 million euros to manage. If the advisor charges 1% annual management, this represents 30,000 euros in revenue, generating a marketing ROI of 200%.

By analyzing these results, the advisor can adjust future campaigns. For example, if he finds that part of his audience responds better to advice on real estate investments, he could adapt future emails to focus more on this theme, thus optimizing his return on investment.

Conclusion

Return on Marketing Investment (ROI) is an essential tool for companies seeking to optimize their advertising spend and maximize the profitability of their marketing efforts. In complex sectors such as banking, asset management or wealth management consulting, where sales cycles are long and purchasing decisions complex, evaluating marketing ROI helps justify investments in targeted campaigns, while adjusting strategies to achieve the best possible results.

Regular analysis of marketing ROI enables these companies to make informed decisions on resource allocation, maximize growth and ensure that every euro spent generates tangible value.