As marketing budgets shrink, there is increased pressure on marketers to show their worth by producing measurable results towards business objectives. This is how iProspect SA helps businesses make critical decisions.
It’s an interesting time to be in the marketing industry because the goal of most clients and agencies today is to impact the bottom line by demonstrating an uptake in sales or new customers. The modern business executive is far more concerned with reporting tangible results than on emotional change or brand love. This means that increasingly, budget is being moved away from the Chief Information Officer and to the Chief Marketing Officer.
Tangible measurements are guiding thought process and action more directly, as terms like Cost Per Lead (CPL), Return On Investment (ROI) and/or Cost Per Acquisition (CPA) rise to the forefront of modern decision-making.
By tracking every single touchpoint, we can take a holistic view on spend and accurately link efforts to results, all the while driving efficiency. This makes digital practitioners far more responsible and accountable for their efforts. Every conversion, interaction and impression is counted.
Transforming action into ROI
A simple click just won’t do anymore. The interaction needs to translate into an action such as a database sign-up or a purchase. Bundling this with marketing (and technology) spend reveals true CPL performance and gives a clear indication of the costs attributed to customer acquisition.
As Netscape founder James Barksdale said, “If we have data, let’s look at data. If all we have are opinions, let’s go with mine.” Working towards an optimized CPL or CPA requires that we actively record every touchpoint and then review this data regularly. If you are not fully committed to decisions based on data, all your actions are based on opinions – a critical business mistake. Opinions are fallible; data is not.
Improving your CPL takes time. It also requires close work between the client and agency. It means trying new things that could fail or have a negative impact to begin with, so forming a trusting relationship is the key to success. As digital technology evolves at an astounding pace, marketers need to be closer than ever to their IT teams and collaborate on key decisions to take the right action.
Online marketers focus on understanding the results of each action and always strive to be as open and transparent as possible. The scary thing is this could mean reducing budgets or spending them elsewhere in order to drive the lowest CPL or CPA.
While this may seem daunting, we need to accept that there are no longer quick wins for budget distribution. True success rises with long-lasting, courageous relationships between clients and agencies to produce results that benefit all.
Agencies need to play the long game to build strong strategies to drive cost efficiencies within CPL and CPA targets, while clients need to drive business decisions based on data. The opportunity for performance-based partnerships has never been better – all it requires is that first step.
Discover how iProspect has redefined digital performance here.