Autumn is the time when the marketing plans for next year are honed to perfection. The time when the growth plans for the future are made and planned to the detail. It is The Time many make or break decisions for your brand and business are made. Still, even if there are countless amount of evidence to prove you should not do so, many marketing plans are based solely on the assumed results of the previous year and on the hazy memories of past successes.
Benchmarks Prove: Data-Driven Marketing is More Effective
McKinsey analysis of more than 250 engagements over five years has revealed that companies, which put data at the center of the marketing and sales decisions improve their marketing return on investment (MROI/ROMI) by 15 – 20 percent.
Our own benchmarks, based on over 300 projects done by Annalect in the Nordics, tell the same: Data driven marketing increases the marketing ROI significantly. By taking customer data and efficiency optimisation practices into use, we see an average marketing ROI improvement of 18% during the first year alone.
The good news is, that the marketing mix optimisation process, where the short-term benchmarks are derived from, yields significant results year after year, as more granular optimisation becomes possible. And as if this wasn’t enough, putting data at the center of the marketing and sales decisions has been proved to increase the company profit even more on long term. This is caused, mainly, by two things:
- The impact of customer-centric marketing solutions often bring more significant result after the first year of introduction, and
- Data handling and analytical capabilities of the organisation grow in maturity and the organisation as a whole becomes more data driven in it’s decision making process. (McKinsey 2/2016)
The 12 Steps Guaranteed to Increase Your Marketing ROI
- Understand your current brand position
- Don’t stare too much at what your competition is doing, but make sure you know some…
- Understand the needs of your customer
- Understand what drives purchases
- Determine the right target group
- Make sure you offer the right products for the right customers
- Set price according to the objectives and market potential
- Understand the effectiveness and ROI of your marketing and optimise the plan for improved performance
- Make sure your message is aligned in different channels and understood by the target group and not only you
- Make sure your organisation is aligned and knows your plan
- Set KPI and measurement protocols for your actions
- Make sure your message got through the clutter
We could call this the twelve-step program. And as said, the topics shouldn’t be too unfamiliar to you. What is changed though, is that you don’t rely solely on your hunch and opinions inside your company when making a brand position map, you measure the actual ROI of marketing and optimise performance based on data, you set targets and you measure actions – in all channels, and you never ever, ever, ever judge an advert and its message only by yourself – I can guarantee that in most cases, you’re not part of the intended target group.
You Need to Eliminate Guesswork From You Marketing Planning Process
Taking the steps needed for data-driven marketing isn’t rocket science, but it relies on you eliminating guesswork and gut feeling from the marketing planning and decision-making process. Instead, you need to base the decisions and plans you make on customer data, factual analysis of you performance and modelled prediction of the most optimal scenario forward. Later, you can take in the help of marketing technology to speed up and simplify things, but before this it is all about your management culture and processes. There is no getting over this.
If you need any help on Your 12 step program, please don’t hesitate to contact us.