Data Driven: The 411 on Harnessing Media Channels With Data
The current buzz in the marketing world encompasses how to integrate all of the media channels that exist today. The age-old “offline” media, revolving mostly around print, radio and TV, now coexists with so many online media variations that we can hardly keep up with it all. The Internet has permanently changed our data landscape.
Data plays a more important role than ever before. Analysts now hold the key to integrating all the media channels that exist, as well as the new ones that seem to appear every year. Let’s explore data’s role in creating a cohesive marketing strategy that harnesses the power of all media channels, and look at how data plays a central part of three KPIs that have stood the test of time.
Cost of Acquiring a Customer
The cost of acquiring a new customer can be defined as the total expense of any given marketing campaign, divided by the number of new customer records acquired. This chart is an example of this calculation for a few online media channels.
Every business must acquire customers and there is a cost for this need. The data generated by all marketing investments, along with the data collected from every purchase of both goods and services, is the foundation by which this cost is understood.
What is most important is linking this cost back to a customer record. Cost per customer for each promotional activity can be an easy connection in the case of newer digital marketing programs. It is more difficult with broad “push” marketing campaigns, such as TV and radio. In those media, using a promotional code to redeem an offer is the best way to collect this data. In all cases where analysts help calculate the acquisition cost, demand attribution rules play a challenging role. We have discussed attribution many times within Data Driven columns during the past years and, once again, attribution is an integral part of any marketing process.
Regardless of how difficult it may be, it is essential that data is leveraged to inform the team of the costs to acquire a customer, and then use this intelligence to evaluate marketing investments as much as possible. Information technology has become very powerful today, and allows analysts to link data together in insightful ways that maximize ROI. For this reason, the role of data has become more valuable than ever.