Marketing ROI #2
In a previous entry I covered covered some of my ideas on Marketing Return On Investment (MROI); why it is an absolute requirement of marketing; what metrics need to be understood and what tools are available.
Today, I want to look into MROI and the purchase decision process. Moving consumers along the purchase continuum should be a deliberate and informed process that recognizes that consumers will base their buying decisions on superior value, which consists of:
– Perceived quality
Insight into the process is necessary to understand ROI.
The graphic above 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. 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 = gathering & receive information
- Familiarity = enough information to form opinion, attitude, etc.
- Consideration = purchase intent, or not
- Purchase = ownership
- Repurchase = positive experience
- Advocacy = recommend to a friend
At each point on the continuum the size of the target audience in that shell 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 the 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.
If your brand is getting tired and needs revitalization and more effective marketing communications, Casey Communications has the experience and track record that can help you increase value from current customers, win new customers and be a market leader.
Contact Jim Casey.
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