Network members can use online tool to calculate marketing ROI.

An online tool to enable marketers to calculate return on investment (ROI) for direct mail campaigns will be demonstrated at this year's ABA Marketing Conference, Sept. 7-9, South Beach, Fla.

The tool, which was developed by the ABA Marketing Network, soon will be made available to network members through the membership website.

Sara Watkins, CFMP, of the ABAMN Council was one of the persons involved in developing the calculator. Marketing Edge spoke to her about the details of the tool and how it will benefit marketers. Our questions and her answers follow below.

What led the development of the ROI template?

Today's marketers are often required to justify and estimate results prior to having campaigns or budgets approved. The ABAMN wanted to assist our members by providing a tool that can bring more credibility to marketing investments and change the view of marketing from just an expense area to an area that is making a contribution to the bank's bottom line.

Additionally, in the 2004 member survey the number one issue that marketers were facing was lack of time to complete tasks effectively. And the number one new potential benefit that members saw most value in receiving was a "marketing toolkit." We listened to our members and decided to develop a set of tools called the Desktop Marketing Assistant. The first phase of the Desktop Marketing Assistant is the ROI template. In the future, we hope to add other calculators as well as information on developing a strategic marketing plan, developing products and services, research, delivery channels and public relations.

How does the ROI calculator work?

Basically, the tool is a template. It has a very simple and easy-to-follow format. You plug in information about your direct mail campaign, such as total number of pieces mailed, mailing costs, other expenses, response ', rate, average balance per account, interest income/expense.

Using these figures, the calculator provides the overall ROI as a percentage. For example, let's say you had a net income (profit) of $50,000 on a mailing. The total investment was $10,000. That would give you an ROI of 500 percent.

How will the calculator help marketers do their jobs better?

For the benefit of marketers, it will efficiently and effectively measure the results of direct marketing campaigns. Also, it will quickly evaluate the direct sales and indirect sales (cross-selling) from each new customer generated through a specific direct mail program.

For the benefit of senior management, it provides tangible marketing results.

Using an ROI approach, marketers have the ability to justify potential increases in marketing budgets, based on effectively measuring how a direct marketing campaign has contributed to the bottom line.

Is the Marketing Network in the process of developing additional desktop tools?

Definitely. We're looking at other types of calculators. We're also looking at templates for strategic marketing plans, the development of new products and services, research and public relations.

We see the Desktop Assistant as a way for marketers to add another "person" to the marketing staff.

Sara Watkins, CFMP, is executive vice president at the Sandy Spring Bank, Olney, Md.

Did You Know?

Attention ABAMN Members: New Online Marketing ROI tool

Join us at the ABA Marketing Conference, Sept. 7-9 in South Beach, Fla. and you'll see first-hand how this new tool will help your marketing efforts.