Every marketing dollar represents an opportunity to get your product or service into the hands of a consumer. But do you really know WHERE to spend the next dollar to get the highest return? Do you know WHAT message or offer is really going to get THAT consumer to convert?
I grew up farming rice and soybeans in Arkansas. The memories of trudging through rice fields in the heat of the summer, patching rice levees with a shovel and mud are forever etched in my mind. Growing rice is HARD WORK, and it was such hard work that I would often beg my dad to stop growing the stuff.
“Why don’t we just plant wheat? That’s an easy crop. You can just plant it and watch it grow,” I’d reason.
Dad would reply, “You can’t just grow rice anywhere. For a variety of reasons, Arkansas is uniquely positioned for rice crops, and that means our limited supply will always be in demand. It will provide for our family even in the toughest seasons.”
As much as I didn’t like his response, because it meant more mud and shovels, when I think about it today, his response was spot on. And his response can be directly applied to the challenge of where to invest your marketing dollars to get the highest yield.
In farming and in business, the law of supply-and-demand is a big deal. If rice could be grown anywhere, then Arkansas farmers probably wouldn’t be incentivized to grow rice since there would be more supply than demand. And it certainly wouldn’t make sense to grow such a labor-intensive crop if all things were equal.
So, how does this relate to my question, “Where should you spend your next marketing dollar?” Let’s say you’re an apparel retailer. Where and how are you going to advertise that apparel to produce the highest yield? The trick is in understanding your first-party data assets – which really means knowing your customers. And I mean really getting to know them. No other brand has the same customer base as yours. This is your “geographic advantage.” Your ability to efficiently identify other potential customers who look like your existing high-value customers is your right-to-win.
How did your existing customers find out about you? What was their first, second, or third purchase? Through which channels do they interact with you? How often do they interact and/or purchase? How much did it really cost to acquire them? Did you have the necessary mechanisms in place to understand how they became a customer in the first place?
The discipline of organizing and understanding this data will help you figure out exactly where to advertise your products. And just like rice farming, IT’S HARD WORK. But it’s worth it – but only if you can organize your data in such a way to KNOW exactly WHERE to spend the next marketing dollar to produce the highest return on your investment.
Real Identity® is Acxiom’s revolutionary, omni-view, brand-specific identity graph that utilizes the latest advancements in machine learning to humanize real-time customer interactions across all channels, devices, locations and time. Real Identity gives you answers to the questions I posed and gives you a path to know where to spend your next marketing dollar. To learn more contact us.
*Source: Forrester Research, Forrester: “Identity Resolution Unlocks Modern Marketing” Published April 24, 2019