February 3, 2013
Marketing ROI in the Upturn -
My last post covered this subject in broad strokes: my ideas on what MROI is; why it will be an absolute requirement of marketing very soon; what metrics need to be understood and what tools are available.
This post I want to use this space to look into MROI and the purchase decision process. Moving consumers along the purchase continuum should be a deliberate and informed process, and recognize that consumers will base their buying decisions on considerations like:
– Perceived Quality
Insight into the process is necessary to understand ROI.
The graphic below is another way to view the process - and the challenge - for marketers. Think about how you go about making the decision to buy a product. It is probably similar. From initial awareness, to buying, to recommending, you fit somewhere along the line. Of course, you can drop out at any point. So, understanding the prospective buyer is necessary to making the smartest marketing choices.
Awareness = receive information
Familiarity = seek information
Consideration = purchase intent
Purchase = ownership
Repurchase = positive experience
Advocacy = recommend
At each stop along the continuum the size of the target audience should be quantifiable. It is not always easy to calculate but the value of this information is clear. Knowing the size of the audience will make it easier to plan the communications. Since not everyone in the TA will be a buyer, for lots of reasons, the TA becomes smaller as it moves closer to the purchase decision. Armed with this information, the tactical communications choices have a better chance of being effective. And the marketer is better able to calculate ROI – the cost of customer acquisition and the likely value of the customer over time.
Find a way to gather the data. If your budget can’t afford all of the tools, be creative. Your marketing program will benefit from the thought you give. And your accountability will be based on reasoned input.