Marketing has the potential to spread the word about a company and greatly increase awareness, profit, and trust in a brand when successful. In the medical supply chain industry, it is necessary to evaluate the performance and impact of marketing campaigns to ensure they are effective in promoting a business.
Marketing Return on Investment (MROI) is a way to measure how much return a company experiences from its marketing spending. ROI determines how marketing contributes to a company’s revenue growth.
It is often a good decision for medical suppliers to spend money on marketing, because if done right, it can increase profit and help a company improve its bottom line.
MROI is calculated through a straightforward equation, with incremental financial value gained as a result of the marketing investment minus the cost of the marketing investment over the cost of the marketing investment. Completing these calculations can be outsourced or calculated by a company’s in-person finance team.
So, what are the benefits of measuring marketing ROI?
- Deciding what to spend money on.
MROI is often calculated on each individual marketing campaign that is developed. The advantage of measuring the effectiveness of each campaign allows a business to understand which efforts have the highest return. By calculating MROI, decisions can also be made about what marketing efforts were most effective and what to spend budgets on going forward.
- Comparing marketing efficiency to competitors.
When a company measures its MROI, they can use the data to track and analyze their marketing statistics. The data collected can be compared against other medical supply chain businesses within the industry. The process of comparing data can assist a business with changing or creating new and improved forms of marketing that help a business to stand out.
- Justifying a business’ marketing spend.
Marketing is a significant expense for a business. Measuring MROI can exemplify that allocating resources to marketing efforts is impactful and contributes to higher profitability for a business. Measuring MROI can also justify making changes and reevaluating a brand’s marketing strategy.
Whether you’re trying to reach healthcare supply executives or medical distribution sales reps with your marketing efforts Share Moving Media can assist you with the process of developing content. With extensive experience in the medical manufacturing and sales industry, SMM can help your business create written content, podcasts, videos, webinars, and more that have the potential to boost your company’s Marketing ROI. As you come up with your strategies around these two customer types we would love the opportunity to do a free one hour brainstorming session with you on best practices we’ve seen over the past 30 years in the business. Please contact Scott Adams at sadams@sharemovingmedia.com to set up this free session.
Sources: Marketing ROI: Definition and How to Measure It | Marketing Evolution