Let's look at a simple campaign and measure its effectiveness. Your company sells widgets for $100 each which cost you $60 to make. That's a $40 profit per widget. Normally, you sell 100 widgets in a month, earning a nice $4000. This month, you decide to send out a direct-mail postcard offering a $10 discount on widgets to anyone who receives the mailing. You send 1,000 postcards and expect a 4% response. That works out to 40 customers.
Of course, the design, printing, and mailing of the postcard do not come free. And the $10 discount per widget for this campaign does eat into your profits. By using MROI, you can measure your results.
Measuring Marketing Results
Understanding ROI
Example Campaign
Measuring Results