Businessweek: “Return on Insight beats Return on Investment?”


There’s probably no better time for an organization to ask the question, “What’s the return on investment?” Given the economic uncertainty, it’s an understandable instinct.

The problem is, traditional ROI, with its focus groups and lab-type settings, is less relevant in a fast-paced digital world. Hyperfocusing on ROI as a key indicator of future success limits the quality of insights that can be obtained when an initiative is launched in a real environment. In the real world, a “mass audience” doesn’t really exist (this is especially true on the Web) and brands that deal in niches are rewarded. In the real world, the collective is the focus group.

It’s time to focus on another type of ROI, one we like to call Return on Insight. Here are some tips on how brands should think about this new form of ROI.

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