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Marketers are seeing the number of communication channels available to them increasing, while their budgets remain the same. The answer is not necessarily to do more marketing but to integrate the use of these channels effectively in order to find the right set of actions which bring the highest conversion rates, maximum profits and the most satisfied customers. For that, brands can rely on the analysis of consumer behavior, highlighting the customer lifecycle before purchasing and evaluating the effectiveness of marketing strategies to drive the final purchase. In this article, you will find some advices on how to better allocate your marketing budget according to this recognized customer behavior.
Be careful not to oversimplify your analysis
Companies now have simple ways to measure their customers’ actions using various metrics and sales attribution. The value of the return from your customers’ experience can be taken from either the first or the last touch-point in the cycle, which can be a phone call, a visit in-store or an email. This simple and easy method does, in fact, ignore the finer details of the customer lifecycle, missing out key information which you can gather about customer interactions across the multiple channels on which the company has invested money.
Consider the entire customer lifecycle
To better understand the relevance and effectiveness of each of your marketing channels, you should consider the entire customer lifecycle and analyze the influence of different actions and their contribution to the final purchase. For e-commerce companies, you should analyze the relationship you have with your customers through the digital imprints that they’ve generated. All of these interactions can be collected and analyzed to build a whole, detailed and individual customer view. For companies who also have shops, call centers, plus multiple other touch points, the approach is exactly the same however it does get a little more complicated, requiring well-defined processes to capture all steps of the relationship.
Make the difference with big data
Until recently the full customer lifecycle was out of reach for marketers due to the cost and complexity of the analysis of so many silos of data. Thanks to new technology to facilitate the treatment of big data and break down organizational silos, many companies are now able to differentiate themselves from their competitors. This is thanks to a better understanding of their customers, their different and individual lifecycle paths and optimization of the company’s marketing investments. Brands now seek to evaluate the influence of each of the marketing channels adopted based on customer behavior and attributing parts of the purchase according to the stage in the customer lifecycle.
Benefit from interactions between the different channels
Identifying the customer lifecycle is not easy and usually requires the analysis of a big volume of data to gain a fully accurate view. Once this is done, analysis can be undertaken to define the way to attribute the sales results to the various marketing channels.
Such enhancements as outlined above, even at the most simple level, can significantly improve your evaluation of the contribution made by various individual marketing channels. Marketers know that every customer interaction can influence other interactions within the cycle. For example, banners and email campaigns have an indirect impact on the use of search engines, while searching via mobile devices is often linked to the urgency of an in-store purchase. A detailed assessment of the contribution of these actions can allow you to measure the impact of social interactions, optimize the impact of multi-channel campaigns, plus much more and enables you to guide the overall marketing budget to ultimately have a better overall ROI.
To go beyond you can look at the linked white paper: http://fr.slideshare.net/AT-Internet/lattribution-en-marketing-digital