Retail CMOs Are Opportunity Obsessed, Are You?
Advertising research, analytics, and algorithmic measurements should not be viewed by retail executive management as something that can be corrected or solved in marketing spend and focus. Rather, buyer and result-based metric data must be viewed through a smarter viewpoint of what can and should be created to stimulate competitive demand.
Yes, I know the cold steel definition of the word algorithm is “a procedure or formula for solving a problem.” It is also known to be a set of rules for solving a problem in a finite number of steps, as in finding the greatest common divisor. But I suggest these are mathematical definitions, not marketing definitions. Marketing and advertising obviously must measure every stitch of asset investment, deployment and returns.
But not to solve a market or investment deficiency, but rather to create and dominate competitive market opportunity. The net, retail marketing departments are under attack, under increasing pressure to defend advertising budgets and more clearly articulate the value they are personally creating for their omnipotent retail organization. Their daily exercised question from the CFO’s office is “where is our consumer traffic, where is our return on marketing investment?”
Throughout the past three decades within our consumer electronics business, whether as manufacturer or retailer we have been charged with kinetic product refreshes, hyper-market efficiencies, and being in product launch mode 24 hours a day. With the advent of the internet, which I affectionately and respectfully call “Darwin on Speed - the fastest unionization of push and pull on the planet,” our united demand for measurements, demand for dauntless market efficiencies is the new race towards competitive market dominance.
“Increases in productivity (with respect to product sell through) delivers increases in profitability” has always been the decree and measurement stick for our retail CMO’s. Today, the mammoth pressure to ensure profitable turns is no longer a solitary art form for CMO’s as consumers themselves are making increasingly more independent decisions on what and where to buy through consumer based reviews and social networking engagements. Mammoth enhancements in the science of retail advertising measurement coupled with significant changes in communication mediums have transformed the function of CMOs and the level of measurement needed to ensure high impact for retail multi-channel businesses.
So just what are opportunity obsessed, best in class retail CMOs focused on in today’s dynamically and digitally changed advertising and marketing landscape:
1. CRM customer rich “good, better and best” demographically targeted buyer insights gained through data mining and measured testing.
2. Multiple “war room” dashboard windows with metric report card engines coupled to and with dynamic campaign management tools.
3. Multi-modal financial profiles capturing and analyzing specific buyer-related data including transactional, behavioral, profitable, cross retail platform purchasing and historic consumer data.
4. Revenue and profit contributions measured against deployed marketing assets with respect to gained retail traffic (week over week) and sales forecasts.
5. Fishing, deploying and measuring web commerce, social impressions/actions and app analytics to better understand and evaluate identities, behaviors, targeting and effective category spend.
6. Focus on top line growth by motivating buyers in the language of up-selling, cross selling, promo-selling, spot selling and crowd selling stimulated through smart advertising spend.
7. Web based kinetic measurements with respect to ad spend and: conversions, unique visitors, return visitors, page views, time on the site and registration metrics for boomerang lifetime relationships.
CMO measurements in the language of ROI (return on investment) combined with the keen ability to hyper-drive brand, product and market offense is never an easy task. Unintentional yet warranted market defense in our consumer electronics business comes from both a lack of confidence in self examination and a demand to achieve course corrections prior to dissecting and correcting metric results.
Perception is reality in market growth when that there is too much data, too many channels, to many mediums, to much competition making it difficult to capture, measure and command data. All making it difficult to run hard on the brand, product and sell through offense. Making it difficult to declare we are “opportunity obsessed through successful and proven results.” Making it easy and comfortable to suggest “our product is just not good enough, our brand is just not strong enough, our price is just not competitive enough.”
This grotto of market declared despair is the down trodden catalyst towards achieving the largest museum of failed products on our planet. A grave warning to executive management that it is time to change course, time to re-fuel traffic focused engines of opportunity before it is declared by your CFO “to late, to little, to bad.”
CMO’s pecuniary confidence in fundamental measurement capabilities including overall campaign/traffic effectiveness, allocating budgets smartly with ROI in mind and articulating potential forecasts and results to c-level executives is increasingly more complex today than yesterday. The key descriptor role of a CMO today is best articulated in one word: “impact.” CMOs have more behavioral insight to impact and forward navigate consumer buying behaviors than any other department. CMO’s can deliver profitable impact through measured ROI. CMO’s smart asset triggers impact retail and product traffic through smart and savvy pull programs. CMO’s clearly and surely have the greatest and most effective impact on company business objectives: on the future of opportunity.
Your very best CMO is impactful and opportunity-obsessed. Your worst CMO is crest fallen and overwhelmed with to many marketing triggers, to many medium choices, to much to measure: to much to re-energize. Savvy, flinty opportunity obsessed CMOs know the way, show the way and measure the way to competitively impactful company growth. They assure and ensure a smart and smartly measured marketing accord for long term prosperity. Our bravest, smartest CMO’s are opportunity obsessed, are you?