Strategic Marketing | The Shift to Optimisation
Classical Marketing vs Marketing Optimisation. According to a global and leading management consultancy “Classic marketing techniques have no place in the digital age. It’s time to accelerate organizational change”.
We beg to differ and restate this as “In the digital age classical marketing techniques can be turbocharged with rich data, computing power, and predictive algorithms and analytics.”
Because, irrespective of disruptive technologies and business models, strategic marketing is still about presenting the right product, to the right customer, at the right price, through the right channel.
Marketing Optimisation | Customer Value Management
Clearly, business is about creating value. The purpose of a sustainable business is, ﬁrst, to create value for customers and, second, to extract some of that customer value in the form of proﬁt, thereby creating value for the ﬁrm.
In the area of Customer Value Management marketing optimisation techniques are used to:
1 Value Architecture. Surface, map, and calibrate what value means to a customer, segment, or entire market. Prioritise internal initiatives to address value delivery short-falls. And build the optimal portfolio of offerings to maximise segment share and returns.
2 Value Capture. Calibrate and quantify the leverage of customer value drivers on willingness to pay. And deploy the optimal value capture architecture.
3 Resource Allocation. Leverage the drivers of value to optimally allocate marketing effort and resources. Across geographies and Products. And across platforms and media formats.
4 Value Created Growth. Measure and calibrate customer lifetime value (CLV) to drive customer acquisition, retention and win-back, and up-sell and cross-sell initiatives.
These marketing optimisation techniques are complemented by our Sales Optimisation methodologies to provide a holistic approach to driving sales and marketing effectiveness.
Marketing Optimisation | Leverage on Market Capitalisation
In a landmark study (Journal of Marketing “Expanding the Role of Marketing: From Customer Equity to Market Capitalisation” 2009) the researchers showed that markets reward B2B and B2C organisations that have optimised their customer value management processes and strategies.
Their stock price rose by up to 35% above their peers and competitors.
To explore how our Marketing Optimisation methodologies can drive your organisation’s growth and market capitalisation please contact us.