For years marketing was seen as a creative expense – necessary, but difficult to quantify. Thanks to advancements in data analytics and deeper understanding of human behaviour, this perspective is now outdated – and Marketing has become recognised as one of the most critical drivers of organisational profitability.
Today’s modern businesses understand that marketing is far more than advertising. It’s a strategic framework that encompasses brand equity, customer experience (CX), organisational culture, and communication. While these interconnected elements directly drive measurable returns, they do require nuanced approaches, especially when comparing business-to-business and business-to-consumer contexts.
The expanding role of marketing
Marketing is no longer just a sales tool; it’s the foundation of sustainable growth. It’s expanded to not only consider advertising, but also:
Brand: A strong, recognisable brand is one of the most reliable drivers of profit. According to McKinsey, companies with strong brands command a 13% price premium and reduce customer acquisition costs by up to 50%. Neuroscience further supports this, showing that trusted brands activate the brain’s reward systems, building loyalty and reducing decision fatigue.
Customer experience (CX): Harvard Business Review reports that organisations with excellent CX achieve a 25% increase in customer retention and a 15% boost in revenue. PwC adds that improving CX can deliver revenue growth 4–8% above the market average. Why? Because customers don’t just buy products – they invest in experiences.
Culture: Internal alignment impacts external success. A Gallup study found that highly engaged employees lead to 23% higher profitability. When employees embody brand values, they deliver better service, creating a virtuous cycle of engagement and loyalty.
Communications: Consistent and clear communication is critical for building trust. Edelman’s Trust Barometer found that 81% of consumers need to trust a brand before they’ll consider purchasing. Brands with strong, consistent messaging achieve 23% higher revenue growth than competitors.
These factors aren’t independent – they amplify each other. An engaged culture improves CX, consistent communications enhance trust, and a strong brand creates the foundation for all of it.
Measuring ROI: B2B vs. B2C
While the principles of marketing ROI are universal, their application differs significantly in B2B and B2C contexts.
B2B: Playing the long game
In B2B the sales cycle is often long, involving multiple decision-makers and a heavy focus on relationships. Measuring ROI here means tracking metrics like customer lifetime value (CLV), lead quality, and pipeline contribution over time.
For example, Global real estate firm JJL introduced a KPI-driven marketing system that tripled pipeline contribution and quadrupled revenue, all while reducing resource use by 11%. The key to their success was aligning marketing metrics with long-term growth objectives and focusing on high-quality leads.
B2C: Speed and emotional resonance
In B2C marketing often revolves around scale, speed, and emotional appeal. Success is measured through immediate metrics like sales uplift, customer engagement, and retention.
For example Intrepid Travel increased its online revenue by 41% by shifting resources to customer-focused branding campaigns. This reallocation leveraged emotional storytelling, strengthening both immediate conversions and long-term loyalty.
The science behind marketing ROI
Effective marketing isn’t just about creativity; it’s rooted in understanding human behavior and leveraging psychological principles to drive results.
Decision fatigue and strong brands
On average, people make 35,000 decisions per day. A strong brand reduces cognitive load, enabling faster and more confident decisions. According to Kantar, strong brands grow revenue 2.5x faster than average brands and deliver 3.4x higher shareholder returns over a 12-year period.
CX and the peak-end rule
Daniel Kahneman’s “peak-end rule” explains that customers base their loyalty on two key moments: the peak emotional experience and the final interaction. PwC found that 32% of customers will walk away after one bad experience, but those who enjoy positive CX remain loyal and spend more over time.
Culture as an ROI multiplier
Engaged employees aren’t just happier – they’re more productive. Gallup’s research found that engaged teams lead to 23% higher profitability because they’re more likely to go above and beyond for customers.
Communication and trust
Trust drives purchase intent. Edelman’s research shows that consumers who trust a brand are significantly more likely to buy from and recommend it. Consistent messaging creates this trust, leading to higher retention and reduced churn.
The 4 key takeaways on marketing ROI
- Measure what matters: ROI metrics vary by market. B2B leaders should track metrics like pipeline contribution and CLV, while B2C leaders should focus on customer engagement and retention.
- Invest in brand: Strong brands don’t just build loyalty – they command premium pricing and reduce acquisition costs.
- Focus on experience: CX is a direct revenue driver. Even small improvements can lead to significant gains.
- Align marketing with strategy: Marketing should operate as a strategic partner, influencing every facet of your organisation.
By reframing marketing as a profit engine, businesses can build strategies that go beyond campaigns, delivering value across brand, CX, culture, and communication. How will you unlock your marketing’s potential?
