From the course: CMO Foundations: Measuring Marketing Effectiveness (ROI)

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Measuring channel performance

Measuring channel performance

From the course: CMO Foundations: Measuring Marketing Effectiveness (ROI)

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Measuring channel performance

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- As a CMO, perhaps the most burning question on your mind about a channel of distribution is, am I getting my money's worth? Channels after all, are an investment. So as with any investment, you need to measure the return on that investment. There are a lot of ways to measure sales force effectiveness. Now keep in mind that any time you measure return on investment, you're creating a ratio of the output from that investment divided by the input to create that channel. In other words, it's what you gained divided by what you spent, easy. For example, you could measure total sales divided by the number of active accounts. You could measure total sales divided by the number of sales calls made. You could measure gross profit divided by the number of sales reps you employ. In other words, pick the numerator, the output, the one that matters most to you and your boss, then divide it by the denominator, which can be just…

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