GE Digital is subsidiary of General Electric and provides software and advisory services around operational technology and infrastructure. GE Digital operates across a number of industries, including aviation, healthcare, manufacturing, mining, oil and gas, power generation and distribution, and transportation.
The Problem: How to Prove Marketing’s Impact
For over 125 years GE has led the charge for innovation, and GE Digital’s marketing organization is no exception: they’ve implemented a revolutionary new investment hierarchy to address spend attribution and they are tackling difficult questions like how ROI and spend are mapped to campaigns. Their overarching goal? To show the level of impact Marketing has on the overall business and use this as leverage to gain bigger budgets so they can drive even more success.
The Solution: Redefining the Hierarchy
But first, GE Digital needed to change their hierarchy. They did this by breaking down their marketing budget at the investment level into three buckets: market analysis, enablement, and customer acquisition and nurture. The strategy layer (the various high-level strategies focused on for the fiscal year) sits under the investments. Marketing activities dedicated to specific high-level strategy, referred to as tactics, help make each strategy a success. In order to tie individual tactics to multiple strategic initiatives, GE Digital now funds flow according to corporate strategy. With Allocadia, they can perform this radical change with a stronger structure and backbone for their new strategic hierarchy.
Why the changes? For three reasons:
- To control cash flow
- To find ways to maximize investments being made
- For better visibility into spend.
With everything now under one umbrella, GE Digital can see how funds are being managed and reorganized as necessary.
GE Digital can now measure results across channels by applying ROI from a tactic across multiple campaigns and gain a holistic view of the impact of their activities. They measure for both ROMO (Return on Marketing Objectives), which shows their impact on broader goals on marketing, and ROMI (Return on Marketing Investment), which is based on pipeline and opportunities metrics.
Because of this shift, the Marketing team is more confident in the impact they are driving for GE Digital. With more clarity brings stronger net return, better strategies, and more constructive conversations within the organization.
Efficiency is always important in running a business and GE Digital has improved theirs by creating a strategic hierarchy for increased visibility and cohesive overall picture. This year, their marketing organization was able to report a 2.55x ROMI demonstrating that, with their new system, they can advance corporate goals and strategies.
Find out how GE Digital harnessed the connection between Allocadia and Salesforce to measure ROMI and ROMO in the full case study.