Three Steps to Optimize Marketing ROI
By David Lowndes
If you're a regular reader of Target Marketing magazine, you already know that communications aimed at specific audiences deliver better results than undifferentiated marketing campaigns. You also know that adding customization and personalization can boost response rates even higher. For example, the average response rate to a typical, nonpersonalized direct mail campaign is about 2 percent. But, according to a study by David Broudy and Professor Frank Romano on variable printing, the addition of personalization to a campaign can increase response time by 34 percent, the value of the first order by 25 percent, repeat orders by 48 percent and overall revenue by 32 percent.
Impressive as these statistics are, marketing professionals can dive deeper still to improve their overall marketing ROI. To truly maximize the yield from your marketing investments, you need to "reengineer" both your marketing materials and your underlying production and distribution processes, using an approach such as the one described in the remainder of this article--an approach Comac calls Communication Optimization.
Communication Optimization in a Nutshell
Communication optimization is a process to streamline production, distribution and inventory, while making collateral more relevant and cost-effective. It achieves this goal by aligning a company's overall marketing objectives with communication best practices, as outlined here in three steps.
Step 1: Analyze. The first step is to analyze your current communication materials in relation to critical factors such as:
[ ] Specific objectives and desired response for each piece or campaign
[ ] Target markets
[ ] Industry norms, best practices and business environment
[ ] Value of the transaction or sale
[ ] Customization and personalization needs
[ ] Audience demographics
[ ] Competitive programs and offerings
[ ] Your company's overall business and marketing objectives
[ ] Product lifecycles
[ ] Inventory quantities, shelf life and value