How To Calculate Guerrilla Marketing ROI

December 6, 2014

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Calculating guerrilla marketing ROI is not at all easy but it is something that is necessary due to various reasons. Clients want to be sure that the best result is gained and they will want to learn all that they can before they actually offer a budget. After the campaign is done, ROI has to be calculated properly.

We basically end up flying blind in the event that we do not measure return and costs. It is always a bad idea to challenge anything without knowing what the effect is of the work that is done. There are many marketing forms out there and some are much tougher to analyze when compared with others. When referring to guerrilla marketing, various mistakes are done in calculating ROI because of a lack of knowledge about how this should be calculated.

guerrilla marketing roi

Understanding ROI

At first glance the calculation seems fairly basic. However, when working on the ROI calculations for the guerilla campaigns, you will notice that everything is a lot more complex than you first thought. The basic calculation is Return-Marketing/Marketing.

The big problem appears when you try to consider the variables that will be considered as you do calculations. Different companies will utilize various metrics in order to calculate. For instance, think about what will happen when you calculate with the use of gross profit instead of using net profit. Alternatively, what happens when you do not include touch-points that are multiple in your marketing funnel? Numbers will usually be different based on what you do.

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There are some situations in which you have to consider different campaign goals you may have. As an example, when you want to run a guerilla marketing campaign that aims to increase awareness, how can you calculate ROI? This is quite impossible. The small and big companies will try to invest money without necessarily thinking about ROI, which is something you will want to consider.

Start With The End

You need to first think about the end result that is desired through the guerrilla marketing campaign. Are you building something that should increase the number of sign-ups? Maybe you want to simply raise awareness. As soon as you have a clearly defined objective, you will find it easy to get to the end, which would be successful.

Measure everything based on concrete numbers that you have access to. You cannot utilize vanity metrics since all the metrics utilized need to include real impact solid measures. When you want to measure guerrilla marketing ROI, you have to consider the following:

Traditional press mentions
Referrals
Sign-ups
Social media mentions
Conversion rates
Response rates

Based on the campaign type that is running, all the metrics can be utilized and combined with the traditional measurements like redemptions, sales and so on. You can have a guerrilla marketing campaign that is digital, physical or even both. However, metrics combinations are usually necessary. The main goal is always to realize what an action’s value is so that you can get a return number. Nominal value has to be placed on everything.

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The return value can be summarized based on non-traditional consumer action, as a value is put on it. In many situations this will feel like it is art and not necessarily a science. However, it is a step that is necessary when referring to a new media campaign or guerrilla marketing.