One “new” approach to increasing engagement and measuring ROI is to borrow the same principles that direct marketers have long understood in the world of direct mail and email:
- Identify your most valuable audience and direct spend toward those segments most likely to buy, while
- Improving the relevance of messaging, offers and the overall customer experience.
Direct marketers have been doing this for decades; specific target audience identification and measurement of individual level stimulus and response. Modern marketers face a more complex multichannel marketing environment where the consumer is boss. To delight consumers while optimizing marketing ROI, she must be able to identify, measure and evaluate consumer engagement and drive continuous improvements through closed-loop learning and promotional effectiveness that increases understanding at a granular level.
What One Marketer Can Do, Another Marketer Can Do
Getting the formula right to optimize your marketing spend across media/channels and products requires improving the juxtaposition of TV/cable, radio, display, search and direct marketing. To improve results and reduce wasteful spend requires a couple of things first.
- Leaders must be able to access and use the various customer data in their respective silos.
- Invest in the analytical tools and advisory services necessary to identify your high-value customers. Once you have your target audience and their requisite insights identified, then it’s time to go to work.
For example, a large financial services company has multiple products and lines of business related to wealth management, banking, credit cards and more. It has separate silos for brands, products and channels. A customer would receive various offers from multiple divisions, while none of those groups knew what the other was doing.
The marketing leader incentivized marketing teams to talk with each other to see how they could cross-pollinate, increase collaboration and coordination across product and media. The resulting product bundles increased efficiency and revenue while gradually decreasing internal bickering. Creating a customer-focused organization can be difficult, but this effort changed the company. Now they are hitting their stride in understanding how product portfolio performance is impacted by marketing promotions for individual products within that portfolio of products, as compared to multiple, individualized products. All campaigns must now include an optimized media plan.