At the end of 2020, the communication and marketing teams are facing a blank page in the constitution of their budget. Indeed, 73% of the brands declare that their communication budgets (media and non-media) in 2021 will be less than or equal to those in 2019, a first since the 2008 crisis. So, what trade-offs or actions should be made in a changing health, economic and sociological context?
Data acceleration, the action key to investment:
Relying on data means first and foremost responding to the economic challenge by being more profitable; data helps rationalize marketing costs while improving the effectiveness of marketing actions throughout the customer lifecycle. It also means responding to the need for continuous improvement in customer relations and customer experience by bringing reliability and adequacy to their expectations thanks to data.
There are also indicators that point in this direction. Investment intentions in Data/CRM projects remain at a high level (82% increase or maintenance in the last quarter, 8 points higher than last June). Similarly, 64% of the brands indicate that they intend to increase (+20 points) the budgets devoted to customer relations and customer experience.
3 Actions to optimize its marketing budget:
In a context of increasingly complex lead generation and acquisition:
“Clarifying your market and your target audience”
Lead collection methods have never been as numerous as they are today, sometimes multiplying costs depending on the levers used. Paradoxically, for some advertisers, it is increasingly difficult to know which method is best suited to their needs. But there is no miracle solution! The best acquisition solution is often composed of several levers to be activated.
To do this, adopt a strategic approach in 4 steps:
- Know your target and market as well as possible.
- Allocate test budgets accordingly.
- Set up a strategy to measure the cost of acquisition according to the different sources of leads.
- And thus generalize on the most efficient levers.
In a landscape of multiple points of contact:
“Develop an omnichannel approach based on a data repository and by enriching it with a relationship management system.”
Each one of us is confronted daily with between 500 and 2000 advertising messages per day . In addition to this, there is the multiplication of contact points. A situation which leads to a complexification of the management of marketing campaigns.
Brands must build a unique data repository that feeds on each interaction with the brand. It allows them to define the most efficient channels in terms of conversion for each message, and thus control their budget.
This repository must be enriched by a RMP, a prospect relationship management program, to work on the relationship over time and optimize the cost of acquisition. Indeed, we know that a short term vision of lead collection only results in a low percentage of conversion, because the consumer often needs time to discover the brand and its products before making a purchase.
In-depth work on consumer data will allow to activate the targets by developing relevant messages for each one, and then to disseminate these messages to the most effective channels in an omnichannel approach with the objective of converting.
To think about customer loyalty in a relational and sustainable approach.
A 2016 study by Temkin Group (now Qualtrics XM institute) showed that individuals are 7.8 times more likely to try a new product or service and 7.1 times more likely to buy more if they have positive emotions about a brand.
The emotional bond is becoming an increasingly important parameter to take into account in a consumer in search of meaning. While transactional loyalty programs make it possible to respond to the rational and economic imperative of customers, they can enter into a promotional race mechanism from which brands will not necessarily emerge as winners, where loyalty in a relational and emotional approach makes it possible to build a more solid and lasting relationship with the customer, based on trust and commitment.
These different levers show that in the face of possible budget restrictions in marketing systems, it is always possible to be more efficient and achieve marketing and sales objectives. More than ever before, data represents tremendous potential in the current context; its more sophisticated consideration and management should enable us to qualify 2021, the year of data acceleration.