Consumers react to your marketing activities in real time, chatting online and making in store purchases. Business outcomes like sales, revenue and so on also accrue continuously as well as short term & long term brand equity effects, so be sure to collect the data as and when it becomes available to you and feed them back into the analytic’s engine. This informs three prime components that measure ad campaigns – attribution, optimization and allocation. Resource allocation can be fine tuned across media and across channels in real time. The analytic’s 2.0 process is quickly emerging as the dominant method for next generation decision making. It’s only been a few years that we’ve had the analytic methods, enormous computing power and cloud based storage capabilities that are needed, but for marketers the writing is on the wall. Companies that don’t adopt advanced analytic’s will be overtaken by those that do.
Marketers can now quantify how investments across different media interact to drive consumer behavior and ultimately revenue. The framework utilized focuses on 3 macro components
a. External Forces
- Commodity Prices
b. Internal Forces
- Four P’s
c. Linear Forces
- Competitor’s Four P’s
- Product /Service Innovation
The state of the economy, political unrest and commodity prices are examples of the external factors outside of control, but determinants to driving or negating consumer behavior. Despite running a well executed OOH campaign for a new line of vehicles, one of our clients was unable to attain a sustainable ROMI (return on marketing investment) due to the recent spikes in gas prices which are factored into the buying decision for high end purchases such as luxury cars.
TV, radio, paid search, social media, pricing strategy, incentives and so on fall into the classification of internal forces that drive the brand’s communication and are within the control of the brand custodian. The data on these investments, the timing of the initiative, consumer responses and the markets where investments are deployed.
The first step is attribution, where consumer responses are linked to marketing actions, which teases out the interactions with all marketing activities. Honing in on the customer conversation allows CMOs to change their allocation decisions and ultimately their revenue. The next step is optimization where we take the existing data gathered to run predictive analytic’s tools to run “what if” scenarios such as reductions in overall spend in certain touch-point mediums and its impact on brand recall, brand awareness or even call to action. Our CX Cloud can run hundreds and thousands of “what if” scenarios and moves into allocation which places the results of optimization into the market, in order to measure outcomes and marketing decisions. If the “what if” scenarios predict positive changes while holding all variables constant and optimistically assuming positive margin gains in pricing & packaging, we can safely make careful yet incremental shifts in spend and CX to find receptive communication by testing markets.
This process is anything but linear and we apply a circular methodology to drive tested & tried ROMI slopes to the brands end goals. The business of the future will tap into these data sets and see immediate gains with unit sales, share of voice and customer lifetime value. And we partner with all clients to achieve market share, revenues and margins that surpass the analog approach. Join us today.