In a competitive business and branding environment, one wrong marketing decision can sink a company. Or at least a stock price. In a perfect world, the better product should always win. But that’s not always the case. All things equal, the difference between a market leader and a follower is the marketing mix. No pressure.
Typically, as a brand marketer, you begin the planning process by taking a look at performance metrics from the previous quarter or year. Don’t get us wrong, that historical data is valuable and informative in its own right. But it’s just the tip of the iceberg for your marketing spend. What lies below the surface is a new dimension of marketing insight optimized through advances in AI technology and machine learning.
Marketing spend optimization in the face of unforeseen competitive and societal shifts
Let’s take a look at two fictional, high-end cooler companies. Both coolers look the same, keep drinks cold for the same amount of time, and cost the same. But, only one marketing team is able to respond to a real-time challenge. In this case, the government passes a strict tariff on raw materials essential to manufacturing. Margins collapse, Suits are sweating, and their departments are tapped to cut expenses.
First up, Old School Coolers. Marketing is legislated by the C-suite. They live in the past, desperately trying to predict future performance trends by accessing limited data on a quarterly basis. Their decisions are informed by what they did in their last crisis. And they scramble to identify which contracts they can cancel the fastest and with the lowest penalties. They have to wait at least another quarter for their data partner to give them new insights, Essentially, they’re alone.
Future Forward Coolers takes a different approach. Leadership believes marketers should not be blindfolded when planning for a crisis. By leveraging Keen, this team rose to the challenge. While planning earlier in the year, historical data was merged with outside data sources—trends and tactical performance metrics—to most effectively predict performance and profitability measures. With this foundational model in tow, periodic marketing mix checks were made throughout the year benefitting from Keen’s Elasticity Engine which continues to strengthen through the ingestion and analysis of contemporary performance and profitability data. So when the crisis hit, Future Forward’s team changed its parameters, ran new what-if scenarios, and delivered the adjustments needed to ensure their ROI remained consistent. The right questions were answered and the marketing spend was optimized.
What sets the two marketing teams apart is the use of advanced analytics to optimize performance and profitability; bridging the gap between marketing goals and financial data. Having access to a system of aggregated user data while simultaneously running future-powered and timely scenarios, can turn a good product into an unbeatable brand.
Keen to know more? Contact us to see how real-life brands leverage data outside of their own to open up a new world of planning capabilities. Whether it’s once-a-year, once-a-quarter, or a once-in-a-lifetime crisis, we can plan for it.