Today’s marketing requires a strategic, top-down approach to allocating marketing budget across all marketing mediums – direct and mass. Larry Mosiman provides four key considerations the approach must consider.
It’s no secret that marketing budgets are being slashed. The question is, what can marketers do about it? How will we 'do more with less', which is what we’re being asked to do? More importantly, will marketing emerge even stronger from today’s adversity?
- Analyse and understand which combinations of media and channels match up against specific funnel metrics. For example, an insurance company can deploy an optimal mix of print and banner advertisements that drive an 'upper funnel' metric like 'brand awareness' yet, when optimally timed with an email marketing offer, they can also use enhanced 'awareness' to drive email response rates or web traffic, a lower funnel metric.
As more campaigns are optimised in this 'integrated' fashion, marketers will be able to construct scorecards which measure the effectiveness of 'integrated' tactics across specific brands, products, regions, and time. More specifically, the marketer would be able to use the scores or 'correlation' value to optimise the mix based on a goal like 10% lift in web traffic or 5% increase in response rate.
- Refine your contact strategy using customer-specific information to determine who to contact under what circumstances across all planned direct campaigns and customer communications. This could include combining typical contact strategy information such as recency and frequency of contact with propensity models for purchase or response, product eligibility information based on the customer’s current situation, and other factors such as preferred communication channel or channel capacity constraints.
- Analytically compare differing scenarios and objectives to evaluate how various counts and critical measures may be affected. For example, you can compare the affect of expanding the budget for certain products, forcing a minimum number of customers for another product, forcing a minimum ROI or revenue threshold, or 'spend at least $150,000 on offers to undermarketed customers in the Northeast', all while analytically calculating the sensitivity of changing each parameter and the net results for each combination.
- Optimise the entire range of marketing campaigns simultaneously to determine which set of campaigns can best meet your overall objectives. In the ever changing and complex world of marketing, it is important to understand the big picture one customer at a time. Mathematical optimisation takes into account the analytical models and various scenarios that have been defined, sorts through all the data and provides results showing the best of all possible solutions – ultimately helping marketers make smarter decisions.
Larry Mosiman has over 20 years of experience leading marketing teams for high tech companies. He is currently the world-wide product marketing manager for SAS’ Customer Intelligence Solutions.