ROMI and the specifics of industrial and B2B markets

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There are several important points to keep in mind before using ROMI to evaluate the marketing effectiveness of a manufacturing or B2B company.

Firstly, the deal cycle in such markets is usually long . A client who came from contextual advertising now may reach the stage of concluding a contract in a few months or a year. Or he may make a test order for 50,000 rubles, and a year later purchase products or services for several million.

Therefore, if, say, 250-300,000 rubles were invested in the channel, taking into account the costs of preliminary work (research of the target audience and competitors, selection of hypotheses, selection of channels, development of strategy, etc.), then ROMI will show that in the first month we go into a hard minus. But when calculating it in the context of the year, we get a completely opposite result. We often observe this in our work with clients.

At the beginning of 2023, we set up contextual brazil whatsapp phone number advertising for a supplier of shut-off valves and heating units. The budget invested in advertising in March allowed us to receive 20 new applications. But only three clients placed an order.

However, later, in August, the company managed to conclude contracts for two more of the applications received in March for a total of 50 million rubles, which fully covered all the costs of contextual advertising for six months.

Secondly, industrial markets use complex multi-stage sales funnels, which involve several promotion channels . Understanding which of them sent the very application that eventually became the contract is much more difficult than in B2C.

For example, a client is initially attracted through contextual advertising, makes a small order and leaves, but remains in the database, and periodically receives email newsletters.

Six months later, you participate in a major industry exhibition, and notify the companies in your database about it via mailing list. The client sees the invitation, remembers you, and goes to talk to you at the exhibition. After that, a permanent constructive cooperation with decent amounts of money is built.

Conclusion: it is difficult to understand which specific channel (and each of them required a separate budget) brought this client. Contextual advertising? Mailing? Exhibition? And which of them should be used to calculate ROMI?

Thirdly, in industrial markets, marketing promotes a product or service, but the sales department brings the client to the deal . Salespeople have many of their own techniques and tools for this. And in fact, the profit from the client is the result of the work of sales managers, although ROMI for assessing the return on marketing should be calculated precisely by it.

In B2C, this contradiction is also present, but not constantly. For example, in online stores or restaurants, salespeople are generally absent. There, the profit from the client can be easily attributed to the efforts of marketers. And in any offline retail outlet, the sales consultant does not always provide surveillance. Often, the client copes without his help.

On topic. How to organize effective B2B marketing