Data analytics should be an integral part of every company’s customer strategy. This used to be a statement of opinion made by suppliers that specialized in customer database management or predictive analytics. Today it is a fact that every division of every organization has to face and react to. Analytics no longer belongs solely in the realm of financial/business analysts and it is no longer the luxury of large companies with significant marketing activity. Data analytics is now preached if not practiced in every group of every organization that has customers; that probably includes you.
Each year, marketers fight for their marketing budget, and then go to work finding the best way to allocate those scarce marketing dollars to make the biggest impact for your brand.
Most likely, somewhere around 10% of your budget has been earmarked for marketing analytics; an investment that research shows ties directly to improved company profits and higher marketing ROI. Yet, according to a recent Harvard Business Review article, less than 40% of companies have been successful using marketing analytics effectively. For example, using analytics to inform customer acquisition.
So how can you make sure your investments produce maximum impact year round? Here are three strategies to position yourself for success:
The term 1:1 Marketing has been around for over 10 years, but many companies still struggle to effectively market to individual customers. Many brands seem to have email clubs that blast the same promotional message to every customer, often several emails per week. This “spray and pray” practice is more about the volume of communications and not the quality of communications. This method of marketing may keep a brand top of mind, but if the message does not resonate with your customers, it may cause them to start ignoring or even opt out of your emails. 1:1 marketing is all about using customer purchase data, demographics, preferences and interests to personalize communications to specific customers or prospects. It is about recognizing and realizing the potential relationship with every customer.
The demands on today’s marketer are vast and varied. Increase the relevance and effectiveness of your marketing message. Create a consistent customer experience at every touchpoint. Do more with less budget! Tell me what’s working and what isn’t. Be nimble and react quickly. Optimize your media by marketing channel.
Fortunately, there is help available. A well-trained analytics team can provide customer insights and improve marketing campaign performance by harnessing Big Data to allow you to meet those demands. The following four tools are essential for a facts-based, data-driven marketing organization.
Wouldn’t it be great if your organization had the marketing funds to do all of the things you’d like? All the media, events, digital, direct, content, mobile, social, and in-store marketing channels, working seamlessly to drive consumer engagement sounds like every marketer’s dream!
Unfortunately, even if there is a positive ROI on every marketing activity, it is rarely possible to exhaust all of the marketing opportunities that a marketing team has before them. More typically, marketers must struggle with a fixed budget to maximize revenue from customers and prospects.
In my experience over 20+ years of working with large enterprises and medium companies, I’ve come to appreciate the process (and the challenges) of allocating marketing budgets across channels and initiatives. I’ve worked with executives on budget optimization, marketing attribution, and test designs over the years, and have discovered three mindsets that are critical to optimizing your budget.