When a company used to create a marketing plan the process was more of an art than a science. Information was gathered, numbers were crunched, and then essentially, one would go with their gut. Creating a marketing plan today is more of a science. With all the data we are able to receive from point of sale, credit cards, loyalty care, and social media platforms, marketing has transformed and we are given a new look into consumer insights.
To sharpen business and marketing plans, companies must look into insights like these four from Business Week:
Consumer Preferences
Social media plays a huge role in what a consumer prefers, and once we know a consumer's preferences we can predict future actions and influence future behaviors.
Coupons
In the past, coupon effectiveness was solely based on tallying up redemption rates. We now know that coupons work even if they are not redeemed because they still function as a form of marketing. Previously retailers could not track who received a coupon, but now with online retailing, mobile sites and loyalty programs, coupons are much easier to identify, even if they are not redeemed.
Loyalty
Many retailers give their customers some sort of reward points for specific spending thresholds (i.e. 1 point per $1 spent). This gives customers an incentive to return to the store - it lures them back in. Retailers use loyalty programs to also keep consumers away from their competitors. Also, data shows that stores do not need to provide higher rewards if there are several competing stores in the area.
Old-Fashioned Marketing
TV, Radio, Print - these are all vehicles that we may look at as being dead to marketing, but truthfully, many of these medias can actually help digital marketing work better. While more people may be buying online, the consumer still needs to type information into a search engine. Companies want consumers to search for branded keywords since they are more cost effective, but brand awareness is typically driven through advertising on TV, newspapers, and radio.
Companies are able to obtain much more real-time information on their consumers which helps us better understand consumer behavior. Connecting all this information provides companies the opportunity to build a scientific marketing plan.
Read Business Week's The New Science of Marketing article here!
