Getting Fuzzy - Where Marketing ROI Measurement Falls Short for Small Businesses

 During a recent consulting project for a small DTC shoe company, my team found ourselves hyper-focused on building out channels that deliver clear ROI, along with the tools to measure it. Think Google Ads, Facebook Messenger, email marketing. For a small company just getting started, it's easy to justify investment in opportunities that clearly drive sales and make the company money. 

But how should a start-up think about their brand and the marketing tasks that come with building it? What is the value of brand awareness, and how can you generate it? How do you measure it? Many digital strategies like influencer marketing and organic social are great at generating awareness and brand loyalty, but they come with a hefty investment of time or money, and their ultimate impact on the bottom line is often unclear.

"Should we focus on brand awareness?" is a great question, but it's so difficult to answer that many small businesses automatically choose to kick the can down the road. Is this the appropriate choice? 

One one hand, the case can be made that passing on brand awareness at the outset is the smart move. At a startup, cash is king, and a startup has limited resources to invest in advertising. Putting money where the clear immediate returns are is important. 

On the other hand, a business needs to think about the type of customers they are acquiring. There is a lot of "low-hanging fruit" available through targeted digital advertising methods, but are these potential customers the best long term customers? Will they believe your brand message and stick around to make purchase after purchase over time? The low hanging fruit may be more transactional, and drawing customers in through brand awareness and affinity could have better long term return on investment. 

Ultimately, it's up to each business owner to decide how awareness fits into their marketing roadmap and brand vision. In some ways, the choice is between near-term measurement and long-term sustainability. Considering the pros and cons of each side of this decision can help small business owners ensure they make an active choice on this issue that aligns with their business goals.