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More Marketing ROI, #2

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Part 2 in a 2-part series

In Part 1 of this series, we discussed how MAM (Marketing Asset Management) works and the massive ROI benefits it can provide. We also defined the criteria for gauging if your company can directly benefit from having MAM.

In this post, we’ll offer you a handy MAM ROI equation to calculate potential cost and time savings from using MAM, and see a couple of real world examples.

 

MAM ROI Equation: ANNUAL Customization time & Cost

 

[ MAM($) x R ] + [ S x H x C x N x R ]
 

Where:

MAM = $ cost of having a MAM asset template produced

R = number of times per year the asset will be revised

S = number of internal staff involved in the customization

H = number of hours required of each staff person to perform the customization

C = $ cost per hour of a staff person’s time (fully burdened)

N = number of custom versions of an asset to be created

 

ROI Examples:

1. Large healthcare organization with 75 facilities nationally

Situation: All locations need their own custom version of a company brochure, and undertake
the customization with staff in their local teams using a design file provided by corporate
(an Adobe InDesign file).

 

Cost without MAM:

MAM = $0

R = one; this brochure is revised once yearly

S = three staff people (marcom coordinator, copywriter and production artist)

H = four hours from each staff person

C = $60/hour fully burdened cost (payroll plus other expenses per employee)

N = 75 locations each needing a local version

[ MAM ($0) x R (1) ] + [ S (3) x H (4) x C ($60) x N (75) x R (1) ] = $54,000

 

Cost with MAM:

MAM = $1,500 (typical cost of producing a MAM asset template from a finished design)

R = one; this brochure will be revised once yearly

S = one local staff person at each facility (marcom coordinator)

H = two hours to modify the template

C = $60/hour fully burdened cost (payroll plus other expenses per employee)

N = 75 locations (corporate)

 

[ MAM ($1,500) x R (1) ] + [ S (1) x T (2) x C ($60) x N (75) x R (1) ] = $1,500 + $9,000 = $10,500

 

Savings from MAM for customizing one brochure: $43,500

Opportunity cost saved: 750 person hours that can be applied to other marketing activities (like new business development)

 

2. Manufacturer with 250 dealer/distributors in its network

Situation: The manufacturer provides catalogs of its product line to all of its dealer/distributors.
Each distributor needs a customized version of the catalog featuring a subset of the entire
product line, localized with that distributor’s brand and contact information.

 

Cost without MAM:

MAM = $0

R = two; this catalog is revised twice yearly

S = two staff people (marcom coordinator and production artist)

H = four hours from each staff person

C = $60/hour fully burdened cost (payroll plus other expenses per employee)

N = 250 locations each needing a local version

[ MAM ($0) x R (2) ] + [ S (2) x H (4) x C ($60) x N (250) x R (2) ] = $0 + $240,000 = $240,000

 

Savings with MAM:

MAM = $1,500

R = two; this catalog is revised twice yearly

S = 0 (customization is done by the distributors themselves using the self-service portal; no company staff are involved)

H = 0

C = $0

N = 250 locations each needing a local version

[ MAM ($1,500) x R (2) ] + [ S (0) x H (0) x C ($0) x N (250) x R (2) ] = $3,000 + $0 = $3,000

 

Annual savings from MAM for customizing two catalogs: $237,000

Opportunity cost saved: 2000 person hours that can be applied to other marketing activities
(like new business development)

 

Final Analysis

To estimate your own MAM ROI, compare the cost savings (as exemplified above) to your costs of
having the MAM system, which can include:

  • Installation fee
  • License fee for the system
  • Training
  • Maintenance fee

Typically, these costs are minuscule compared to the potential savings of using MAM.

 

For more information on Marketing Asset Management solutions and a complimentary evaluation
of your business case to see if your company will benefit from using MAM, please contact ZUZA
at 800.350.9411 or request your evaluation online.

 

Download this series as a white paper »


 

One Response to More Marketing ROI, #2

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