Marketing Decisions Based on Data; Seems Simple, Right?
Every manager and business owner out there knows that marketing decisions often need to be made quickly, and so we often rely on our intuition to guide us.
The problem is that our intuition can easily deceive us. By not asking the right questions and by allowing emotion to permeate the decision-making process, it can become easy to make a decision that will negatively affect your company’s fortunes. Therefore, it’s important to have a system of predetermined guidelines in place to support our decisions. We should challenge our intuition and ask ourselves if there is data and evidence to back our marketing decisions.
Google, for example, has proven to be very effective in this type of decision making. Google tested 41 shades of blue to confirm which would bring the highest click rate on their paid ads. As crazy as the study might seem, this campaign enabled the company to generate millions of additional dollars in profits.
Here at Strathcom Media, we often get the request to publish a “GET APPROVED FOR CREDIT” call-to-action (CTA) button on the homepage, despite extensive research showing this particular CTA is seldom clicked. This valuable homepage real estate is unnecessarily occupied. Take the time to monitor your analytics and discover what meaningful CTAs could be placed on the homepage.
The same applies when choosing advertising mediums to leverage. There is no lack of advertising channels to choose from (Google PPC, Youtube, Facebook, Instagram, print, radio, billboards, email, direct mail, flyers-the list goes on), but how do you choose the appropriate channels for your dealership?
Some marketing agencies are notorious for promising significant conversion and lead increases in an attempt to lure in gullible buyers with too-good-to-be-true promises. This stains an industry that can potentially yield a very high return on investment.
That being said, a wealth of information gives us a great advantage, enabling easier decision-making. A good agency will use informational reporting to create marketing accountability and evaluate their value. In a digital world, there are so many metrics that you can measure anything and everything! A competent account manager will be able to break the metrics down for you in a way that is both understandable and useful.
Keep in mind that not all data is defined consistently. For example, if a marketing agency is promising to increase your conversions or your leads, ask them to define what a qualified sales lead or conversion is. Having a common definition of a qualified lead is imperative to avoiding disappointment. A confident marketing agency will have a strict framework for what does and what does not qualify as a sales lead.
A good place to start is by asking the right questions to define your advertising strategy. Here are some sample questions to help you figure this out:
- Who is your target market? It is wise to conduct some research and take a look at your analytics to find out what your age and gender demographics look like. This will influence your answers to the other question below. (If you don’t already have Google Analytics (GA) connected to your website, do so immediately, as this information is easily accessible and invaluable.)
- How do your competitors execute their promotion strategies? This may also influence your choice of promotional activity. For example, many of our dealers are executing geo-fencing strategies to steal customers from other dealers. How will this affect the way you react, if you choose to react at all?
In summary: Strathcom integrates these methods so we can better know our clients, understand our market segment, and identify weaknesses and strengths of our digital strategy, and then ultimately take the guessing and intuition out of our decision-making process. You can too! At Strathcom Media, we apply these methods in our decision making to ensure our clients’ marketing decisions and advertising strategies are backed and driven by statistics, keeping their minds at ease.