Business objectives haven't changed a whole lot over time - drive growth, build brand/category leadership and create operational savings. Broadly speaking these goals end up requiring shifting money around based on three steps.
- Freeing resources from non-productive programs,
- Identifying how marketing impacts key metrics among key segments, and
- Re-purposing marketing dollars to more productive programs
We're not talking about our discretionary spend or bucket for experiments here, we're talking about betting the farm.
In this case, there are numerous known unknowns, like 'what is the sales impact if we don't do that anymore', but also a very real potential for unknown unknowns - things we simply don't know to ask about yet. This begins to sound like a three-to-five year program, not a single campaign, that has as many cultural and process changes as it does tactical ones.
To help break down such a large problem from an analytic perspective, it is helpful to identify specific programs that shape our understanding and thus our planning. Here's my initial categorization:
- Document "Cost of Sales" attributable to each key tactic
- Identify productivity of each tactic by geographic zones, e.g. store trading area.
- Develop consumer segmentation model(s) based on how they choose and decide
- Build a model for how different types of content work
- Define how wholesale changes in the media mix impacts sales
(Disclosure - this problem is something we're facing at work and I'm sharing my thinking process of how we're helping clients get from A to B.)
This is the second part of a continuing series about the 'shift to digital'. It started here.