Analytics in Good Times and Bad
“It was the best of times, it was the worst of times” – for data analytics that is. When times are good, some marketers seem less concerned about the efficiency of their marketing investments and will target just about anyone who qualifies for a promotion. But when times are bad, and budgets are being aggressively managed, there is usually renewed interest in making these budgets work as hard as they can. That’s when data analytics becomes a marketer’s new best friend. Data analytics can help marketers justify their investments to management and help them to make smart decisions about where to cost effectively cut back on programs to minimize the impact. An effective predictive modelling infrastructure aligned with business objectives can quickly and relatively painlessly identify where to trim budgets, if required.
Even better, effective post-campaign tracking linked to these suites of models can make ROMI-based decisions even easier to make. Accurate attribution of marketing investments combined with targeting tools like predictive models are some of the best strategic tools marketers can use to effectively manage their budgets. These can help marketers decide between potentially competing marketing investments by program or channel and defend the business case for their programs.
However, there is no reason that the value of this approach needs to be limited to bad economic periods. Just like any other business, marketers should be looking to optimize the return on their investments through both good and bad periods. Sometimes the business priorities may change (acquisition vs. retention, revenue vs. profit) but every marketer should be aiming to generate a positive return for their business, regardless. A well designed suite of analytical models and tracking tools gives marketers the flexibility to adjust to these changing priorities without needing to change the overall process.
So don’t be afraid to engage your pocket protector wearing data analytics team (I’m allowed to say that because I’m one of them) in good times and in bad. We can help you spend your budget more effectively whether it’s big or small.
