Understanding the competitive landscape
One of the most challenging contexts in which to measure ROI is in a competitive marketplace, such as technology or FMCG. Differentiating yourself in a highly competitive environment by offering products and services similar to yours is a challenge.
Consumers are exposed to 6,000 ads impacts every day, according to data from Neuromedia. All these advertisements are attempts by brands to convince the public that their proposal is the best. And it doesn’t have to be, but it does have to appear to be in the user’s eyes. To do this, you must know in detail the preferences and needs of your target.
For this reason, the customer centric approach becomes even more relevant in competitive markets, because without putting the customer at the center of your decision making it is very difficult to offer them products and services that appeal to them. And without that, maximizing the ROI of your campaigns is impossible.
Maximizing ROI in Marketing with Consumer Insights
The main step to maximizing the ROI of your strategy is to adopt data-driven marketing. According to the Boston Consulting Group, mature data-driven marketing enjoys 1.5 times the cost benefits and up to 2.5 times the revenue impact.
Consumer insights must be integrated with decision-makers, who must be perceived as opinion leaders. In fact, 45% of marketers say that C-Suite listens carefully when decisions are based on consumer insights. In this way, the marketing team can deliver actionable strategies that solve business problems.
What can you do to maximize the ROI of your actions?
- Identify your objectives and make sure they follow the SMART rule, i.e. that they are specific, measurable, achievable, relevant and time-bound.
- Set KPIs that are related to your objectives. This way you will know if you are getting closer to your goal or if you need to make changes to your strategy.
- Define your buyer persona in order to create actions that add value. By segmenting your audience you will be able to create personalized content and messages to gain relevance, improve user experience, build a quality audience and reduce wasted resources.
- Identify your value proposition in order to differentiate yourself from the competition and define the messages and attributes that will make your product or service relevant.
- Choose the channels in which you will promote yourself. To do this, you must know where your target audience is and what their customer journey is.
- Use content marketing to connect with your target audience and attract their attention.
- Establish an SEO strategy to position your brand.
- Analyze the results and identify which actions have been most profitable. Knowing which elements have worked best will allow you to refine your strategy and adapt to the evolution of your audience.
- Monitor trends in your sector and your audience’s behavior to detect changes and be able to react to them quickly.
The Keys to Sustainable ROI
One of the most important things in marketing is the ability to react and adapt. Being able to update and redirect a strategy according to the results and data that are obtained is essential in order to achieve your objectives.
To do this, it’s essential that you adopt a customer-centric approach that allows you to prioritise the needs of your target audience and launch actions that meet their priorities. An effective strategy is not achieved at the first attempt, you have to establish a foundation and strengthen it as you analyse the results. This is the only way to ensure that they are solid and that they will stay with you for a long time, and far into the future.
Remember that measuring ROI and working to maximise it allows you to:
- Improve decision making. By knowing the effectiveness of your actions, it is possible to evaluate the profitability of your investments.
- Analyse results and optimise future actions. With the data obtained, the team is able to adapt the strategy accordingly and improve future actions.
- Optimize the budget. Knowing which channels work best for the company allows for informed investment without the need to increase the marketing budget.
In competitive markets, the customer centric approach is the most solid strategy to meet your business objectives. Thanks to it, you can improve your decision making, boost your strategy and optimize your department’s budget. Want to know more? Download now the report based on insights from 100 customer centric marketing leaders.
