The holistic information obtained is critical as each customer is different and needs to be treated and managed differently. Managing it well provides an all important competitive edge in the saturated market. The answer lies in marketing analytics.
With marketing analytics, marketers can understand the effectiveness of their marketing, allowing marketers to identify how each of their marketing initiatives compare against each other, determine the true ROI of their activities, and understand how well they’re achieving their business goals. Marketing analytics provide the intelligence platform for marketers to be able to diagnose deficiencies in specific channels in their marketing mix, and make adjustments to strategies to improve their overall marketing program.
Marketing Analytics Manager (MAM) focuses on marketing at four core elements of the customer process, namely: Acquisition, Growth, Profitability, and Retention.
M1: Customer Acquisition
Customer acquisition is first step of the customer process. From response modelling in marketing initiatives, to pricing models, to product and purchase segmentation, MAM simplifies the process, but provides an in depth management of information to streamline and improve the customer acquisition process.
M2: Revenue Growth
To increase spending and share of wallet of customers, the marketing effort needs to be precise in the content that is delivered. Cross selling and up selling to customers requires the correct bundles or promotions to be offered to customers at the right time. MAM enables the user to undertake quick and easy association modelling, while undertaking customer segmentation, to ensure the most relevant offer is provided to the right audience.
Good sales revenue alone do not translate to profit, but coupled with an equally efficient strategy in managing sales and marketing costs, allows the company to be well positioned for good profitability. MAM allows the user insight into where marketing dollars should be spent, and who should marketers target. Understanding customer lifetime value allows marketers to streamline the targeting process, differentiating between customers who provide a higher level of profitability and customers who may fall under a more infrequent transactional purchase group that may require higher costs to maintain.
M4: Customer Retention
It is known that to retain a customer is less costly than to acquire a new one. However, not knowing who to retain, and when to initiate retention programs for specific targets, can be just as costly. MAM allows users to easily generate Churn models, and scoring customers regularly, to initiate regular and catered retention programs. This allows the proactive reach to customers who may be in danger of churning, and also enables the regular communication to groups that are at risk, so as to allow marketers to act before it is too late. Further, with regular feedback collected from customers, MAM also allows the ease of generating customer satisfaction indices for all customers that can allow for the monitoring of changes not inherent in transactional data alone.
Developing insights that drive business outcomes.
Every day, the amount of data available to marketers grows―and it’s arriving faster with increasing specificity and granularity. It’s a rich resource, full of information about rivals, markets, segments, even individual customers. But to tap this powerful source of competitive advantage, marketers need a structured approach for uncovering insights that is explicitly designed to drive action and results.
Marketing analytics lays the groundwork for smarter decisions, successful campaigns―and stronger customer relationships. It’s the foundation that allows marketers to realize their longstanding aspiration of engaging customers as individuals in every interaction, across every channel.