Using ROO and ROI to Measure the True Impact of Your Signage
Last month, we looked at Return On Objectives (ROO) as a measurement of impact when you can’t immediately tie your efforts to hard, quantifiable numbers (such as sales). Measuring ROO, as opposed to traditional Return On Investment (ROI), gives integrated marketers a new way to think about the success of events, signage, meetings, and other tactics that don’t generate tangible results.
But that doesn’t mean the two methods are mutually exclusive: it’s time for ROO, Phase Two.
This is a brief guide to how you can use ROO and ROI to learn how well your projects are working and how well your process is working.
For the sake of clarity, we’ll use the kind of digital signage you’d find at a retail store as an example. In our hypothetical situation, it was installed two months ago, and now your boss wants some data to justify the investment.
The Limits of ROI
What’s tricky about ROI is that it’s difficult to isolate the effect of any one piece of marketing, and true ROI may not reveal itself right away. Over time, you might look at:
- Number of products sold
- Repeat sales/value of a customer
- Whether or not you’ve realized savings (e.g., saving time and money on printed materials or sales training)
What ROO Adds to the Conversation
One of the reasons more integrated marketers are embracing ROO is that you can start looking for upward ticks immediately. Measuring ROO requires thoughtfulness and creativity up front – specifically, articulating what you want to achieve (other than sales), and how you’re going to measure it. You might have set goals like:
- Create a more positive opinion of the brand (as measured by social media mentions/engagement)
- Increase overall satisfaction with the shopping experience (as measured by time spent in the store)
- Maximize employee effectiveness (because even branded signage can be used to educate/motivate employees)
The Bigger Picture
By looking at the two measures, you’ll see actionable insights as well as hard, cold business returns. Say, for example, social media engagement goes through the roof, but sales are flat. This might instruct you to make sure what you’re doing on social adequately reflects the brand, or to use your social content to drive back to your website or store. Or, if overall sales and employee satisfaction both trend up, you might infer that your new signage is a great training tool, then tailor your content accordingly. Eventually, you’ll generate insights that you can bake into your creative planning and process, and you’ll definitely see the results at the cash register.